SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
NYSE:SSD - New York Stock Exchange, Inc. - US8290731053 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 40 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making SSD a very profitable company, without any liquidiy or solvency issues. SSD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SSD was profitable.
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 4 of the past 5 years.
1.2 Ratios
SSD has a Return On Assets of 11.10%. This is in the better half of the industry: SSD outperforms 65.00% of its industry peers.
SSD has a Return On Equity of 17.32%. This is comparable to the rest of the industry: SSD outperforms 57.50% of its industry peers.
SSD has a Return On Invested Capital of 12.67%. This is in the better half of the industry: SSD outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is in line with the industry average of 13.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 17.32% | ||
| ROIC | 12.67% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.84%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
1.3 Margins
The Profit Margin of SSD (14.51%) is better than 75.00% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
SSD's Operating Margin of 19.39% is fine compared to the rest of the industry. SSD outperforms 75.00% 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 45.96%, SSD belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
SSD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.39% | ||
| PM (TTM) | 14.51% | ||
| GM | 45.96% |
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.
Compared to 5 years ago, SSD has less shares outstanding
The debt/assets ratio for SSD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.57 indicates that SSD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.57, SSD is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of SSD is 4.90, which is a neutral value as it means it would take SSD, 4.90 years of fcf income to pay off all of its debts.
SSD has a Debt to FCF ratio of 4.90. This is in the lower half of the industry: SSD underperforms 67.50% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that SSD is not too dependend on debt financing.
SSD has a Debt to Equity ratio of 0.24. This is in the better half of the industry: SSD outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 6.57 |
ROIC/WACC1.21
WACC10.44%
2.3 Liquidity
A Current Ratio of 3.53 indicates that SSD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.53, SSD belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
SSD has a Quick Ratio of 1.99. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.99, SSD is doing good in the industry, outperforming 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
SSD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.10%.
Measured over the past years, SSD shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
The Revenue has been growing slightly by 0.83% 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)-8.1%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%2.34%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%3.13%
3.2 Future
Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.52% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y6.98%
EPS Next 2Y8.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y4.85%
Revenue Next 3YN/A
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 22.44, 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.
Compared to an average S&P500 Price/Earnings ratio of 30.30, SSD is valued a bit cheaper.
The Price/Forward Earnings ratio is 20.97, which indicates a rather expensive current valuation of SSD.
SSD's Price/Forward Earnings is on the same level as the industry average.
SSD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSD indicates a slightly more expensive valuation: SSD is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.66 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SSD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)1.09
EPS Next 2Y8.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.10, SSD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.11%.
SSD has paid a dividend for at least 10 years, which is a reliable track record.
SSD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.11%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SSD pays out 14.37% of its income as dividend. This is a sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.37%
EPS Next 2Y8.52%
EPS Next 3YN/A
170.52
-3.35 (-1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.03%
Inst Owner Change0.78%
Ins Owners0.25%
Ins Owner Change0.3%
Market Cap7.19B
Analysts80
Price Target196.18 (15.05%)
Short Float %2.03%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.06
Dividend Growth(5Y)4.11%
DP14.37%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.23%
Min EPS beat(2)-8.04%
Max EPS beat(2)-6.43%
EPS beat(4)0
Avg EPS beat(4)-9.54%
Min EPS beat(4)-14.87%
Max EPS beat(4)-6.43%
EPS beat(8)4
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)17.29%
EPS beat(16)11
Avg EPS beat(16)14.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)2.85%
Revenue beat(8)4
Avg Revenue beat(8)1.59%
Revenue beat(12)8
Avg Revenue beat(12)2.62%
Revenue beat(16)11
Avg Revenue beat(16)2.3%
PT rev (1m)-3.71%
PT rev (3m)-3.71%
EPS NQ rev (1m)3.54%
EPS NQ rev (3m)3.54%
EPS NY rev (1m)-4.51%
EPS NY rev (3m)-4.89%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 20.97 | ||
| P/S | 3.24 | ||
| P/FCF | 75.66 | ||
| P/OCF | 28.62 | ||
| P/B | 3.87 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 14.31 |
EPS(TTM)7.6
EY4.46%
EPS(NY)8.13
Fwd EY4.77%
FCF(TTM)2.25
FCFY1.32%
OCF(TTM)5.96
OCFY3.49%
SpS52.57
BVpS44.05
TBVpS21.6
PEG (NY)3.22
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 17.32% | ||
| ROCE | 17.06% | ||
| ROIC | 12.67% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 25.87% | ||
| OM | 19.39% | ||
| PM (TTM) | 14.51% | ||
| GM | 45.96% | ||
| FCFM | 4.29% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.84%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
ROICexc(3y)17.6%
ROICexc(5y)21.28%
ROICexgc(3y)31.82%
ROICexgc(5y)32.33%
ROCE(3y)20.29%
ROCE(5y)22.96%
ROICexcg growth 3Y-9.52%
ROICexcg growth 5Y1.86%
ROICexc growth 3Y-19.51%
ROICexc growth 5Y-3.82%
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%
F-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 191.73% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.14% | ||
| Profit Quality | 29.55% | ||
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 6.57 |
F-Score4
WACC10.44%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.1%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%2.34%
EPS Next Y6.98%
EPS Next 2Y8.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.83%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%3.13%
Revenue Next Year4.03%
Revenue Next 2Y4.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.08%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year34.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.01%
OCF growth 3YN/A
OCF growth 5YN/A