SIMPSON MANUFACTURING CO INC (SSD)
US8290731053 - Common Stock
Overall SSD gets a fundamental rating of 7 out of 10. We evaluated SSD against 43 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. These ratings could make SSD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year SSD was profitable.
SSD had a positive operating cash flow in the past year.
In the past 5 years SSD has always been profitable.
In the past 5 years SSD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.09%, SSD is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
SSD has a better Return On Equity (21.08%) than 65.12% of its industry peers.
SSD has a better Return On Invested Capital (15.23%) than 67.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is above the industry average of 13.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.09% | ||
| ROE | 21.08% | ||
| ROIC | 15.23% |
ROA(3y)14.79%
ROA(5y)14.36%
ROE(3y)22.4%
ROE(5y)20.26%
ROIC(3y)17.9%
ROIC(5y)17.14%
1.3 Margins
SSD has a better Profit Margin (15.99%) than 88.37% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
SSD's Operating Margin of 21.66% is amongst the best of the industry. SSD outperforms 90.70% of its industry peers.
In the last couple of years the Operating Margin of SSD has grown nicely.
With an excellent Gross Margin value of 47.15%, SSD belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
SSD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.66% | ||
| PM (TTM) | 15.99% | ||
| GM | 47.15% |
OM growth 3Y2.89%
OM growth 5Y6.73%
PM growth 3Y2.73%
PM growth 5Y6.38%
GM growth 3Y1.22%
GM growth 5Y1.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD is creating some value.
SSD has less shares outstanding than it did 1 year ago.
SSD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SSD has been reduced compared to a year ago.
2.2 Solvency
SSD has an Altman-Z score of 7.12. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a better Altman-Z score (7.12) than 83.72% of its industry peers.
SSD has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.42, SSD is doing good in the industry, outperforming 72.09% of the companies in the same industry.
SSD has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SSD (0.27) is better than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 7.12 |
ROIC/WACC1.38
WACC11.04%
2.3 Liquidity
A Current Ratio of 3.63 indicates that SSD has no problem at all paying its short term obligations.
The Current ratio of SSD (3.63) is better than 86.05% of its industry peers.
A Quick Ratio of 2.11 indicates that SSD has no problem at all paying its short term obligations.
SSD has a Quick ratio of 2.11. This is amongst the best in the industry. SSD outperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.63 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
SSD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.65%.
SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.49% yearly.
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
Measured over the past years, SSD shows a quite strong growth in Revenue. The Revenue has been growing by 15.46% on average per year.
EPS 1Y (TTM)6.65%
EPS 3Y24.65%
EPS 5Y23.49%
EPS growth Q2Q-5.19%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y20.42%
Revenue growth 5Y15.46%
Revenue growth Q2Q5.49%
3.2 Future
The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.47% on average over the next years.
EPS Next Y6.13%
EPS Next 2Y9.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y5.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.04, the valuation of SSD can be described as rather expensive.
SSD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SSD to the average of the S&P500 Index (28.02), we can say SSD is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.77, the valuation of SSD can be described as rather expensive.
SSD's Price/Forward Earnings ratio is in line with the industry average.
SSD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
SSD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.88 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SSD does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)0.94
EPS Next 2Y9.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 1.19, SSD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.11%.
SSD has paid a dividend for at least 10 years, which is a reliable track record.
SSD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
12.77% of the earnings are spent on dividend by SSD. This is a low number and sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.77%
EPS Next 2Y9.01%
EPS Next 3YN/A
SIMPSON MANUFACTURING CO INC
NYSE:SSD (5/7/2024, 11:24:56 AM)
182.29
-0.94 (-0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 20.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.6
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.09% | ||
| ROE | 21.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.66% | ||
| PM (TTM) | 15.99% | ||
| GM | 47.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.63 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.65%
EPS 3Y24.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.62%
Revenue growth 3Y20.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y