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.
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.
Each year in the past 5 years SSD had a positive operating cash flow.
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 68.29% of the companies in the same industry.
SSD's Return On Equity of 17.44% is fine compared to the rest of the industry. SSD outperforms 60.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.37%, SSD is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SSD is above the industry average of 12.81%.
| 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
SSD's Profit Margin of 14.49% is fine compared to the rest of the industry. SSD outperforms 75.61% of its industry peers.
In the last couple of years the Profit Margin of SSD has grown nicely.
Looking at the Operating Margin, with a value of 19.63%, SSD belongs to the top of the industry, outperforming 82.93% 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 46.12%, SSD belongs to the top of the industry, outperforming 97.56% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SSD is creating some value.
Compared to 1 year ago, SSD has less shares outstanding
The number of shares outstanding for SSD has been reduced compared to 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 6.61. 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 6.61, SSD is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.59, SSD is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that SSD is not too dependend on debt financing.
SSD has a Debt to Equity ratio of 0.19. This is in the better half of the industry: SSD outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 6.61 |
ROIC/WACC1.34
WACC10.01%
2.3 Liquidity
SSD has a Current Ratio of 3.17. This indicates that SSD is financially healthy and has no problem in meeting its short term obligations.
SSD has a better Current ratio (3.17) than 80.49% 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.
Looking at the Quick ratio, with a value of 1.54, SSD is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 |
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.
The Revenue has been growing slightly by 1.38% in the past 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
Based on estimates for the next years, SSD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.65% on average per year.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.63%
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
A Price/Earnings ratio of 20.73 indicates a rather expensive valuation of SSD.
Compared to the rest of the industry, the Price/Earnings ratio of SSD is on the same level as its industry peers.
SSD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
SSD is valuated rather expensively with a Price/Forward Earnings ratio of 17.75.
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 36.44, SSD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
SSD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SSD is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.41 | ||
| EV/EBITDA | 13.12 |
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.
SSD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)1.01
EPS Next 2Y8.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, SSD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.15, SSD has a dividend in line with its industry peers.
With a Dividend Yield of 0.73, SSD pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
14.42% 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.
DP14.42%
EPS Next 2Y8.65%
EPS Next 3YN/A
159.23
-0.53 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.91%
Inst Owner Change-0.7%
Ins Owners0.25%
Ins Owner Change1.63%
Market Cap6.66B
Analysts80
Price Target187.68 (17.87%)
Short Float %3.01%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)0%
PT rev (3m)-2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.75 | ||
| P/S | 2.97 | ||
| P/FCF | 45.41 | ||
| P/OCF | 19.72 | ||
| P/B | 3.58 | ||
| P/tB | 6.99 | ||
| EV/EBITDA | 13.12 |
EPS(TTM)7.68
EY4.82%
EPS(NY)8.97
Fwd EY5.63%
FCF(TTM)3.51
FCFY2.2%
OCF(TTM)8.08
OCFY5.07%
SpS53.56
BVpS44.51
TBVpS22.78
PEG (NY)2.71
PEG (5Y)1.01
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 | 6.61 |
F-Score4
WACC10.01%
ROIC/WACC1.34
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-3.91%
EBIT growth 3Y5.81%
EBIT growth 5Y19.95%
EBIT Next Year27.73%
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%