SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SSD - US8290731053 - Common Stock
178.7 USD
-0.71 (-0.4%)
We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 42 industry peers in the Building Products industry. SSD gets an excellent profitability rating and is at the same time showing great financial health properties. SSD is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SSD suitable for quality investing!
1. Profitability
1.1 Basic Checks
- SSD had positive earnings in the past year.
- In the past year SSD had a positive cash flow from operations.
- SSD had positive earnings in each of the past 5 years.
- SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 11.31%, SSD is doing good in the industry, outperforming 76.19% of the companies in the same industry.
- The Return On Equity of SSD (17.16%) is better than 64.29% of its industry peers.
- SSD has a better Return On Invested Capital (12.57%) than 69.05% of its industry peers.
- SSD had an Average Return On Invested Capital over the past 3 years of 15.07%. This is above the industry average of 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.31% | ||
| ROE | 17.16% | ||
| ROIC | 12.57% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.85%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
1.3 Margins
- SSD's Profit Margin of 14.90% is fine compared to the rest of the industry. SSD outperforms 78.57% of its industry peers.
- In the last couple of years the Profit Margin of SSD has grown nicely.
- SSD has a Operating Margin of 19.35%. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
- In the last couple of years the Operating Margin of SSD has grown nicely.
- With an excellent Gross Margin value of 46.02%, SSD belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
- In the last couple of years the Gross Margin of SSD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.35% | ||
| PM (TTM) | 14.9% | ||
| GM | 46.02% |
OM growth 3Y-5.84%
OM growth 5Y4.8%
PM growth 3Y-5.18%
PM growth 5Y4.13%
GM growth 3Y-1.43%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SSD is still creating some value.
- SSD has less shares outstanding than it did 1 year ago.
- SSD has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SSD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.74 indicates that SSD is not in any danger for bankruptcy at the moment.
- SSD has a Altman-Z score of 6.74. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
- SSD has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
- SSD has a Debt to FCF ratio of 1.55. This is amongst the best in the industry. SSD outperforms 80.95% of its industry peers.
- SSD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of SSD (0.17) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.74 |
ROIC/WACC1.4
WACC8.98%
2.3 Liquidity
- A Current Ratio of 3.35 indicates that SSD has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.35, SSD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 1.88 indicates that SSD should not have too much problems paying its short term obligations.
- The Quick ratio of SSD (1.88) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- SSD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
- SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
- The Revenue has been growing slightly by 4.26% in the past year.
- Measured over the past years, SSD shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
EPS 1Y (TTM)8.45%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%16.74%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%6.19%
3.2 Future
- The Earnings Per Share is expected to grow by 8.99% on average over the next years. This is quite good.
- Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y7.94%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.27%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.77, which indicates a rather expensive current valuation of SSD.
- Compared to the rest of the industry, the Price/Earnings ratio of SSD is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.82. SSD is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.99, the valuation of SSD can be described as rather expensive.
- SSD's Price/Forward Earnings is on the same level as the industry average.
- SSD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
- SSD's Enterprise Value to EBITDA ratio is in line with the industry average.
- SSD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.01 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SSD does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)1.06
EPS Next 2Y8.46%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, SSD is not a good candidate for dividend investing.
- SSD's Dividend Yield is comparable with the industry average which is at 0.66.
- With a Dividend Yield of 0.62, SSD pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- The dividend of SSD has a limited annual growth rate of 4.15%.
- SSD has been paying a dividend for at least 10 years, so it has a reliable track record.
- SSD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.15%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 13.76% of the earnings are spent on dividend by SSD. This is a low number and sustainable payout ratio.
- SSD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.76%
EPS Next 2Y8.46%
EPS Next 3Y8.99%
SIMPSON MANUFACTURING CO INC / SSD FAQ
Can you provide the ChartMill fundamental rating for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a fundamental rating of 6 / 10 to SSD.
Can you provide the valuation status for SIMPSON MANUFACTURING CO INC?
ChartMill assigns a valuation rating of 3 / 10 to SIMPSON MANUFACTURING CO INC (SSD). This can be considered as Overvalued.
What is the profitability of SSD stock?
SIMPSON MANUFACTURING CO INC (SSD) has a profitability rating of 7 / 10.
What is the financial health of SIMPSON MANUFACTURING CO INC (SSD) stock?
The financial health rating of SIMPSON MANUFACTURING CO INC (SSD) is 8 / 10.
Can you provide the expected EPS growth for SSD stock?
The Earnings per Share (EPS) of SIMPSON MANUFACTURING CO INC (SSD) is expected to grow by 7.94% in the next year.