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Analyzing the Quality Characteristics of SIMPSON MANUFACTURING CO INC (NYSE:SSD).

By Mill Chart

Last update: Nov 22, 2023

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 course 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.

What matters 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 37.23% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of SIMPSON MANUFACTURING CO INC stands at 1.24, 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.
  • SIMPSON MANUFACTURING CO INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 28.03%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • The EBIT 5-year growth of SIMPSON MANUFACTURING CO INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NYSE:SSD

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 44 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 quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of SSD contains the most current fundamental analsysis.

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


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.