Why the quality investor may take a look at NYSE:SSD.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SIMPSON MANUFACTURING CO INC (NYSE:SSD) is suited for quality investing. Investors should of couse do their own research, but we spotted SIMPSON MANUFACTURING CO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:SSD may be interesting for quality investors.

• SIMPSON MANUFACTURING CO INC has shown strong performance in revenue growth over the past 5 years, with a 16.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• SIMPSON MANUFACTURING CO INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.27% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of SIMPSON MANUFACTURING CO INC stands at 1.97, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• SIMPSON MANUFACTURING CO INC exhibits impressive Profit Quality (5-year) with a 91.47% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 28.03%, SIMPSON MANUFACTURING CO INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• SIMPSON MANUFACTURING CO INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 45 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make SSD suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of SSD

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.