SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
NYSE:SSD - US8290731053 - Common Stock
188.16 USD
-2.96 (-1.55%)
188.16 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. While showing a medium growth rate, SSD is valued expensive at the moment. This makes SSD very considerable 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.
Each year in the past 5 years SSD has been profitable.
In the past 5 years SSD always reported a positive cash flow from operatings.
1.2 Ratios
SSD has a better Return On Assets (11.15%) than 75.61% of its industry peers.
With a decent Return On Equity value of 17.12%, SSD is doing good in the industry, outperforming 65.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.79%, SSD is in the better half of 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 12.73%.
| 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 has a Profit Margin of 14.53%. This is in the better half of the industry: SSD outperforms 75.61% of its industry peers.
SSD's Profit Margin has improved in the last couple of years.
SSD's Operating Margin of 19.62% is amongst the best of the industry. SSD outperforms 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.
In the last couple of years the Gross Margin of SSD has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD is creating some value.
The number of shares outstanding for SSD has been reduced compared to 1 year ago.
The number of shares outstanding for SSD has been reduced compared to 5 years ago.
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
SSD has an Altman-Z score of 7.04. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.04, SSD belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.30, SSD is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that SSD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 7.04 |
ROIC/WACC1.25
WACC10.2%
2.3 Liquidity
A Current Ratio of 3.37 indicates that SSD has no problem at all paying its short term obligations.
SSD's Current ratio of 3.37 is amongst the best of the industry. SSD outperforms 87.80% of its industry peers.
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.
SSD's Quick ratio of 1.80 is fine compared to the rest of the industry. SSD outperforms 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.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
Looking at the last year, SSD shows a small growth in Revenue. The Revenue has grown by 2.95% in the last year.
Measured over the past years, SSD shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
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
Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.98% on average per year.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y9.51%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.26%
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 24.00, the valuation of SSD can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SSD.
SSD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
SSD is valuated rather expensively with a Price/Forward Earnings ratio of 20.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSD is on the same level as its industry peers.
SSD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SSD.
SSD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SSD is more expensive than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.03 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SSD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)1.17
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.60%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.11.
Compared to an average S&P500 Dividend Yield of 2.32, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of SSD has a limited annual growth rate of 4.15%.
SSD has been paying a dividend for at least 10 years, so it has 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
188.16
-2.96 (-1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change2.32%
Ins Owners0.25%
Ins Owner Change0.1%
Market Cap7.83B
Analysts80
Price Target193.8 (3%)
Short Float %3.13%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)3.26%
PT rev (3m)3.26%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)1.73%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 20.85 | ||
| P/S | 3.44 | ||
| P/FCF | 48.03 | ||
| P/OCF | 22.26 | ||
| P/B | 4.06 | ||
| P/tB | 8.07 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)7.84
EY4.17%
EPS(NY)9.03
Fwd EY4.8%
FCF(TTM)3.92
FCFY2.08%
OCF(TTM)8.45
OCFY4.49%
SpS54.65
BVpS46.37
TBVpS23.31
PEG (NY)2.52
PEG (5Y)1.17
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%
ROICexcg growth 3Y-9.49%
ROICexcg 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 | 7.04 |
F-Score5
WACC10.2%
ROIC/WACC1.25
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 Year5.06%
Revenue Next 2Y5.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.4%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.59%
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%