SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
NYSE:SSD - New York Stock Exchange, Inc. - US8290731053 - Common Stock - Currency: USD
Taking everything into account, SSD scores 6 out of 10 in our fundamental rating. SSD was compared to 42 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. SSD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SSD had positive earnings in the past year.
In the past year SSD had a positive cash flow from operations.
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
SSD has a better Return On Assets (11.78%) than 71.43% of its industry peers.
The Return On Equity of SSD (17.85%) is better than 64.29% of its industry peers.
SSD has a Return On Invested Capital of 13.64%. This is in the better half of the industry: SSD outperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SSD is above the industry average of 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 17.85% | ||
| ROIC | 13.64% |
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 14.44%. This is in the better half of the industry: SSD outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of SSD has grown nicely.
With an excellent Operating Margin value of 19.50%, SSD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of SSD has grown nicely.
Looking at the Gross Margin, with a value of 45.96%, SSD belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
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 | 19.5% | ||
| PM (TTM) | 14.44% | ||
| GM | 45.96% |
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.
The number of shares outstanding for SSD has been reduced compared to 1 year ago.
SSD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.73 indicates that SSD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.73, SSD belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
SSD has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as SSD would need 2.44 years to pay back of all of its debts.
SSD has a better Debt to FCF ratio (2.44) than 71.43% of its industry peers.
SSD has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, SSD is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 6.73 |
ROIC/WACC1.4
WACC9.74%
2.3 Liquidity
SSD has a Current Ratio of 3.21. This indicates that SSD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SSD (3.21) is better than 83.33% of its industry peers.
SSD has a Quick Ratio of 1.59. This is a normal value and indicates that SSD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.59, SSD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
SSD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.88%.
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 1.38% 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)-3.88%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%4.52%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%1.57%
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 8.65% yearly.
Based on estimates for the next years, SSD will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.63%
Revenue Next 2Y4.83%
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.
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
With a Price/Earnings ratio of 20.25, SSD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SSD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.91. SSD is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.33, which indicates a rather expensive current valuation of SSD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (21.85), we can say SSD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSD indicates a slightly more expensive valuation: SSD is more expensive than 73.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.35 | ||
| EV/EBITDA | 12.77 |
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)2.65
PEG (5Y)0.98
EPS Next 2Y8.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.16, SSD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 14.43% of its income as dividend. This is a sustainable payout ratio.
SSD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.43%
EPS Next 2Y8.65%
EPS Next 3YN/A
155.49
+0.47 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change-0.26%
Ins Owners0.29%
Ins Owner Change1.46%
Market Cap6.53B
Analysts80
Price Target187.68 (20.7%)
Short Float %2.4%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.43%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.79%
Min EPS beat(2)-8.04%
Max EPS beat(2)2.45%
EPS beat(4)1
Avg EPS beat(4)-5.21%
Min EPS beat(4)-8.84%
Max EPS beat(4)2.45%
EPS beat(8)4
Avg EPS beat(8)5.12%
EPS beat(12)8
Avg EPS beat(12)11.87%
EPS beat(16)11
Avg EPS beat(16)14.68%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)3.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)3.3%
Revenue beat(8)5
Avg Revenue beat(8)2.13%
Revenue beat(12)8
Avg Revenue beat(12)1.99%
Revenue beat(16)11
Avg Revenue beat(16)2.17%
PT rev (1m)-2.65%
PT rev (3m)-3.33%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-5.05%
EPS NY rev (1m)1.46%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.92 | ||
| P/FCF | 41.35 | ||
| P/OCF | 19.3 | ||
| P/B | 3.61 | ||
| P/tB | 7.11 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)7.68
EY4.94%
EPS(NY)8.97
Fwd EY5.77%
FCF(TTM)3.76
FCFY2.42%
OCF(TTM)8.06
OCFY5.18%
SpS53.18
BVpS43.02
TBVpS21.87
PEG (NY)2.65
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 17.85% | ||
| ROCE | 18.37% | ||
| ROIC | 13.64% | ||
| ROICexc | 15.17% | ||
| ROICexgc | 26.01% | ||
| OM | 19.5% | ||
| PM (TTM) | 14.44% | ||
| GM | 45.96% | ||
| FCFM | 7.07% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 211.19% | ||
| Cap/Sales | 8.08% | ||
| Interest Coverage | 32.4 | ||
| Cash Conversion | 64.94% | ||
| Profit Quality | 48.97% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 6.73 |
F-Score5
WACC9.74%
ROIC/WACC1.4
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)-3.88%
EPS 3Y7.43%
EPS 5Y20.59%
EPS Q2Q%4.52%
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y12.37%
Revenue growth 5Y14.45%
Sales Q2Q%1.57%
Revenue Next Year3.63%
Revenue Next 2Y4.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.21%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year29.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.34%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-20.81%
OCF growth 3Y30.75%
OCF growth 5Y10.45%