Why NYSE:SSD qualifies as a quality stock.

In this article we will dive into SIMPSON MANUFACTURING CO INC (NYSE:SSD) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SIMPSON MANUFACTURING CO INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of SIMPSON MANUFACTURING CO INC

• The 5-year revenue growth of SIMPSON MANUFACTURING CO INC has been remarkable, with 16.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• SIMPSON MANUFACTURING CO INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 33.49% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• SIMPSON MANUFACTURING CO INC maintains a healthy Debt/Free Cash Flow Ratio of 1.47, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 91.47%, SIMPSON MANUFACTURING CO INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of SIMPSON MANUFACTURING CO INC has been remarkable, with 28.03% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• SIMPSON MANUFACTURING CO INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:SSD?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, SSD scores 7 out of 10 in our fundamental rating. SSD was compared to 45 industry peers in the Building Products industry. SSD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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!

Check the latest full fundamental report of SSD for a complete fundamental analysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.