SIMPSON MANUFACTURING CO INC (SSD) Stock Fundamental Analysis
NYSE:SSD - New York Stock Exchange, Inc. - US8290731053 - Common Stock - Currency: USD
SSD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SSD suitable for quality investing!
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.
SSD had positive earnings in each of the past 5 years.
SSD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.50%, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
With a decent Return On Equity value of 17.44%, SSD is doing good in the industry, outperforming 63.41% of the companies in the same industry.
The Return On Invested Capital of SSD (13.37%) is better than 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SSD is in line with the industry average of 13.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 17.44% | ||
| ROIC | 13.37% |
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
Looking at the Profit Margin, with a value of 14.49%, SSD is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
SSD's Profit Margin has improved in the last couple of years.
The Operating Margin of SSD (19.63%) 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 (46.12%) 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 | 19.63% | ||
| PM (TTM) | 14.49% | ||
| GM | 46.12% |
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.
Compared to 1 year ago, SSD has less shares outstanding
Compared to 5 years ago, SSD has less shares outstanding
Compared to 1 year ago, SSD has an improved debt to assets ratio.
2.2 Solvency
SSD has an Altman-Z score of 7.20. This indicates that SSD is financially healthy and has little risk of bankruptcy at the moment.
SSD has a better Altman-Z score (7.20) than 82.93% of its industry peers.
The Debt to FCF ratio of SSD is 2.59, which is a good value as it means it would take SSD, 2.59 years of fcf income to pay off all of its debts.
SSD has a Debt to FCF ratio of 2.59. This is in the better half of the industry: SSD outperforms 68.29% of its industry peers.
SSD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SSD (0.19) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 7.2 |
ROIC/WACC1.32
WACC10.13%
2.3 Liquidity
A Current Ratio of 3.17 indicates that SSD has no problem at all paying its short term obligations.
The Current ratio of SSD (3.17) is better than 82.93% of its industry peers.
SSD has a Quick Ratio of 1.54. 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 1.54 is fine compared to the rest of the industry. SSD outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
SSD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
SSD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
SSD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.95%.
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
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.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.58%
Revenue Next 2Y4.85%
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.
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 24.03, the valuation of SSD can be described as rather expensive.
SSD's Price/Earnings is on the same level as the industry average.
SSD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.00, the valuation of SSD can be described as rather expensive.
SSD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SSD to the average of the S&P500 Index (34.61), we can say SSD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 21 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA ratio is in line with 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 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.72 | ||
| EV/EBITDA | 14.89 |
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 decent profitability rating of SSD may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)1.17
EPS Next 2Y8.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SSD has a yearly dividend return of 0.64%, which is pretty low.
SSD's Dividend Yield is comparable with the industry average which is at 1.15.
Compared to an average S&P500 Dividend Yield of 2.39, SSD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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 14.42% 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.
DP14.42%
EPS Next 2Y8.65%
EPS Next 3YN/A
188.38
+6.9 (+3.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change-0.65%
Ins Owners0.25%
Ins Owner Change0.34%
Market Cap7.88B
Analysts80
Price Target193.8 (2.88%)
Short Float %3.41%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.1
Dividend Growth(5Y)4.15%
DP14.42%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.68%
Min EPS beat(2)2.45%
Max EPS beat(2)16.92%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-8.04%
Max EPS beat(4)16.92%
EPS beat(8)4
Avg EPS beat(8)1.6%
EPS beat(12)8
Avg EPS beat(12)10.82%
EPS beat(16)11
Avg EPS beat(16)13.97%
Revenue beat(2)2
Avg Revenue beat(2)2.13%
Min Revenue beat(2)0.96%
Max Revenue beat(2)3.3%
Revenue beat(4)2
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)3.3%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)8
Avg Revenue beat(12)1.85%
Revenue beat(16)11
Avg Revenue beat(16)1.63%
PT rev (1m)3.26%
PT rev (3m)3.26%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 21 | ||
| P/S | 3.52 | ||
| P/FCF | 53.72 | ||
| P/OCF | 23.33 | ||
| P/B | 4.23 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)7.84
EY4.16%
EPS(NY)8.97
Fwd EY4.76%
FCF(TTM)3.51
FCFY1.86%
OCF(TTM)8.08
OCFY4.29%
SpS53.56
BVpS44.51
TBVpS22.78
PEG (NY)3.14
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 17.44% | ||
| ROCE | 18% | ||
| ROIC | 13.37% | ||
| ROICexc | 14.24% | ||
| ROICexgc | 23.6% | ||
| OM | 19.63% | ||
| PM (TTM) | 14.49% | ||
| GM | 46.12% | ||
| FCFM | 6.55% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 223.77% | ||
| Cap/Sales | 8.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.32% | ||
| Profit Quality | 45.18% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 7.2 |
F-Score4
WACC10.13%
ROIC/WACC1.32
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 Y7.64%
EPS Next 2Y8.65%
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 Year3.58%
Revenue Next 2Y4.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.91%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year28.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.4%
FCF growth 3Y15.77%
FCF growth 5Y-1.27%
OCF growth 1Y-5.67%
OCF growth 3Y30.75%
OCF growth 5Y10.45%