SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
USA - NYSE:SSD - US8290731053 - Common Stock
176.9 USD
+2.63 (+1.51%)
176.9 USD
0 (0%)
Taking everything into account, SSD scores 6 out of 10 in our fundamental rating. SSD was compared to 41 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. These ratings would make SSD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SSD was profitable.
In the past year SSD had a positive cash flow from operations.
In the past 5 years SSD has always been profitable.
Each year in the past 5 years SSD had a positive operating cash flow.
1.2 Ratios
SSD has a better Return On Assets (11.15%) than 75.61% of its industry peers.
Looking at the Return On Equity, with a value of 17.12%, SSD is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.79%, SSD is doing good in the industry, outperforming 70.73% of the companies in the same industry.
SSD had an Average Return On Invested Capital over the past 3 years of 15.07%. This is above the industry average of 12.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROIC | 12.79% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.85%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
1.3 Margins
SSD's Profit Margin of 14.53% is fine compared to the rest of the industry. SSD outperforms 75.61% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
The Operating Margin of SSD (19.62%) is better than 80.49% of its industry peers.
SSD's Operating Margin has improved in the last couple of years.
SSD has a better Gross Margin (46.13%) than 97.56% of its industry peers.
SSD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% |
OM growth 3Y-5.84%
OM growth 5Y4.8%
PM growth 3Y-5.18%
PM growth 5Y4.13%
GM growth 3Y-1.43%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
SSD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SSD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SSD has been reduced compared to 5 years ago.
SSD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.63 indicates that SSD is not in any danger for bankruptcy at the moment.
SSD has a better Altman-Z score (6.63) than 78.05% of its industry peers.
The Debt to FCF ratio of SSD is 2.30, which is a good value as it means it would take SSD, 2.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SSD (2.30) is better than 68.29% of its industry peers.
SSD has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
SSD has a Debt to Equity ratio of 0.18. This is in the better half of the industry: SSD outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 6.63 |
ROIC/WACC1.33
WACC9.58%
2.3 Liquidity
A Current Ratio of 3.37 indicates that SSD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.37, SSD belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
SSD has a Quick Ratio of 1.80. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SSD (1.80) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
Measured over the past years, SSD shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
Looking at the last year, SSD shows a small growth in Revenue. The Revenue has grown by 2.95% in the last year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
3.2 Future
SSD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.98% yearly.
SSD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.90% yearly.
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.56, the valuation of SSD can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SSD.
Compared to an average S&P500 Price/Earnings ratio of 27.67, SSD is valued at the same level.
A Price/Forward Earnings ratio of 19.60 indicates a rather expensive valuation of SSD.
SSD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, SSD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 19.6 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA ratio is in line with the industry average.
SSD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SSD is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.16 | ||
| EV/EBITDA | 13.92 |
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)2.37
PEG (5Y)1.1
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 1.25, SSD has a dividend in line with its industry peers.
With a Dividend Yield of 0.68, SSD pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.15%.
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)4.15%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SSD pays out 14.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of SSD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.26%
EPS Next 2Y8.98%
EPS Next 3YN/A
176.9
+2.63 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change0.1%
Market Cap7.36B
Revenue(TTM)2.27B
Net Income(TTM)330.39M
Analysts80
Price Target195.5 (10.51%)
Short Float %2.61%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.26%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.48%
Min EPS beat(2)8.03%
Max EPS beat(2)16.92%
EPS beat(4)3
Avg EPS beat(4)4.84%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)8
Avg EPS beat(12)10.83%
EPS beat(16)11
Avg EPS beat(16)14.36%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)0.96%
Max Revenue beat(2)4.24%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)4.24%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)11
Avg Revenue beat(16)1.73%
PT rev (1m)0.88%
PT rev (3m)4.17%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)0%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 19.6 | ||
| P/S | 3.24 | ||
| P/FCF | 45.16 | ||
| P/OCF | 20.93 | ||
| P/B | 3.81 | ||
| P/tB | 7.59 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)7.84
EY4.43%
EPS(NY)9.03
Fwd EY5.1%
FCF(TTM)3.92
FCFY2.21%
OCF(TTM)8.45
OCFY4.78%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.37
PEG (5Y)1.1
Graham Number90.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.12% | ||
| ROCE | 17.22% | ||
| ROIC | 12.79% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 23% | ||
| OM | 19.62% | ||
| PM (TTM) | 14.53% | ||
| GM | 46.13% | ||
| FCFM | 7.17% |
ROA(3y)12.73%
ROA(5y)14.26%
ROE(3y)20.85%
ROE(5y)20.82%
ROIC(3y)15.07%
ROIC(5y)17.05%
ROICexc(3y)17.6%
ROICexc(5y)21.28%
ROICexgc(3y)31.83%
ROICexgc(5y)32.34%
ROCE(3y)20.29%
ROCE(5y)22.96%
ROICexgc growth 3Y-9.49%
ROICexgc growth 5Y1.88%
ROICexc growth 3Y-19.5%
ROICexc growth 5Y-3.81%
OM growth 3Y-5.84%
OM growth 5Y4.8%
PM growth 3Y-5.18%
PM growth 5Y4.13%
GM growth 3Y-1.43%
GM growth 5Y1.2%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 214.26% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 49.35% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 6.63 |
F-Score5
WACC9.58%
ROIC/WACC1.33
Cap/Depr(3y)146.81%
Cap/Depr(5y)130.96%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.28%
Profit Quality(3y)81.36%
Profit Quality(5y)74.6%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%6.93%
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.95%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%5.71%
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.67%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-23.26%
OCF growth 3Y30.75%
OCF growth 5Y10.45%