Does SIMPSON MANUFACTURING CO INC (NYSE:SSD) match Peter Lynch’s “Invest in What You Know” philosophy?

With a strategy that emphasized steady earnings growth and a strong market position, Peter Lynch sought out long-term winners. We put SIMPSON MANUFACTURING CO INC (NYSE:SSD) to the test against his stock-picking rules.

Why Peter Lynch may take an interest in SIMPSON MANUFACTURING CO INC (NYSE:SSD)

• With a solid Return on Equity (ROE) of 17.85%, SSD exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• Maintaining a Debt-to-Equity ratio of 0.2, SSD demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• SSD has achieved 20.59 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• With a PEG ratio of 0.99, SSD presents a compelling case for growth at a fair price.
• With a Current Ratio of 3.21, SSD shows a stable financial footing with enough assets to cover short-term debts.

A complete fundamental analysis of SSD

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

SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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. While showing a medium growth rate, SSD is valued expensive at the moment.

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

More Affordable Growth stocks can be found in our Peter Lynch screener.

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.