Evaluating SIMPSON MANUFACTURING CO INC (NYSE:SSD) using Peter Lynch’s legendary strategy

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether SIMPSON MANUFACTURING CO INC (NYSE:SSD) fits the characteristics of a Lynch-approved investment.

Is SIMPSON MANUFACTURING CO INC (NYSE:SSD) the type of stock Peter Lynch would love?

• The Return on Equity(ROE) of SSD is 17.85%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a Debt-to-Equity ratio at 0.2, SSD showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• SSD has experienced 20.59 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• Considering its PEG ratio of 0.93, SSD may be an undervalued growth opportunity.
• SSD’s Current Ratio of 3.21 highlights its ability to sustain day-to-day operations without liquidity concerns.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to SSD. SSD was compared to 40 industry peers in the Building Products industry. SSD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SSD is valied quite expensively at the moment, while it does show a decent growth rate.

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

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Keep in mind

This article should in no way be interpreted as advice. 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.