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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Simpson Manufacturing Co., Inc. (NYSE:SSD) due to its excellent fundamentals in more than one area. SSD is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Simpson Manufacturing here.
Excellent balance sheet with solid track record
SSD delivered a bottom-line expansion of 30% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, SSD also outperformed its industry, which delivered a growth of 24%. This is an notable feat for the company. SSD’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SSD seems to have put its debt to good use, generating operating cash levels of 4.06x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Simpson Manufacturing, there are three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SSD’s future growth? Take a look at our free research report of analyst consensus for SSD’s outlook.
- Valuation: What is SSD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SSD is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.