NYSE:SSD

Stock Analysis Report

Executive Summary

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells building construction products.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Simpson Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

SSD

-0.3%

US Building

0.4%

US Market


1 Year Return

29.8%

SSD

23.9%

US Building

11.4%

US Market

Return vs Industry: SSD exceeded the US Building industry which returned 23.9% over the past year.

Return vs Market: SSD exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

SSDIndustryMarket
7 Day3.7%-0.3%0.4%
30 Day8.6%1.9%0.3%
90 Day12.5%3.9%-1.2%
1 Year31.7%29.8%25.9%23.9%13.9%11.4%
3 Year87.1%78.6%33.6%21.7%47.2%37.6%
5 Year151.4%131.8%55.4%35.2%62.4%44.6%

Price Volatility Vs. Market

How volatile is Simpson Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simpson Manufacturing undervalued compared to its fair value and its price relative to the market?

28.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SSD ($73.9) is trading above our estimate of fair value ($70.42)

Significantly Below Fair Value: SSD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SSD is poor value based on its PE Ratio (28.1x) compared to the Building industry average (20.5x).

PE vs Market: SSD is poor value based on its PE Ratio (28.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SSD is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SSD is overvalued based on its PB Ratio (3.8x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

How is Simpson Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSD's forecast earnings growth (14.2% per year) is above the savings rate (2.7%).

Earnings vs Market: SSD's earnings (14.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: SSD's earnings are forecast to grow, but not significantly.

Revenue vs Market: SSD's revenue (4.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SSD's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SSD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Simpson Manufacturing performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SSD's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: SSD's earnings growth over the past year (7.7%) is below its 5-year average (16.4% per year).

Earnings vs Industry: SSD earnings growth over the past year (7.7%) exceeded the Building industry 5.4%.


Return on Equity

High ROE: SSD's Return on Equity (13.7%) is considered low.


Return on Assets

ROA vs Industry: SSD has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: SSD has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Simpson Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: SSD's short term assets ($614.0M) exceeds its short term liabilities ($157.2M)

Long Term Liabilities: SSD's short term assets (614.0M) exceeds its long term liabilities (44.3M)


Debt to Equity History and Analysis

Debt Level: SSD is debt free.

Reducing Debt: SSD has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: SSD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SSD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SSD has a high level of physical assets or inventory.

Debt Coverage by Assets: SSD's debt is covered by short term assets (assets are 8.6405780975754E+16x debt).


Next Steps

Dividend

What is Simpson Manufacturing's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SSD's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SSD's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: SSD's dividends per share have been stable in the past 10 years.

Growing Dividend: SSD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.8%), SSD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Simpson Manufacturing's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Karen Colonias (62yo)

7.8yrs

Tenure

US$2,957,788

Compensation

Ms. Karen W. Colonias serves as Chief Executive Officer of Simpson Strong-Tie Company Inc. Ms. Colonias has been the Chief Executive Officer and President at Simpson Manufacturing Co., Inc. since January 2 ...


CEO Compensation Analysis

Compensation vs. Market: Karen's total compensation ($USD2.96M) is below average for companies of similar size in the US market ($USD5.12M).

Compensation vs Earnings: Karen's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

54yo

Average Age

Experienced Management: SSD's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SSD's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: SSD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$85,04610 Sep 19
Ricardo Arevalo
EntityIndividual
Shares1,301
Max PriceUS$65.37
SellUS$83,70723 Aug 19
Roger Dankel
EntityIndividual
Role
Unit President
President of North American Sales - Simpson Strong-Tie Company Inc
Shares1,300
Max PriceUS$64.39
SellUS$90,79404 Jun 19
Robin MacGillivray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,475
Max PriceUS$61.56
SellUS$131,45020 May 19
Roger Dankel
EntityIndividual
Role
Unit President
President of North American Sales - Simpson Strong-Tie Company Inc
Shares2,200
Max PriceUS$59.75

Ownership Breakdown


Management Team

  • Karen Colonias (62yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$2.96m
  • Brian Magstadt (52yo)

    CFO & Treasurer

    • Tenure: 7.8yrs
    • Compensation: US$1.30m
  • Roger Dankel (55yo)

    President of North American Sales - Simpson Strong-Tie Company Inc

    • Tenure: 5.3yrs
    • Compensation: US$1.12m
  • Kevin Swartzendruber (53yo)

    Senior Vice President of Finance

    • Tenure: 2yrs
    • Compensation: US$632.59k
  • Terrence Hammons

    Senior VP

    • Tenure: 0.3yrs

Board Members

  • Jim Andrasick (75yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$173.63k
  • Gary Cusumano (75yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$166.63k
  • Mike Bless (54yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$146.63k
  • Jennifer Chatman (60yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$158.63k
  • Robin MacGillivray (64yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$173.13k
  • Celeste Ford (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$156.63k
  • Karen Colonias (62yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$2.96m
  • Phil Donaldson (57yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$130.38k

Company Information

Simpson Manufacturing Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simpson Manufacturing Co., Inc.
  • Ticker: SSD
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$3.301b
  • Shares outstanding: 44.67m
  • Website: https://www.simpsonmfg.com

Number of Employees


Location

  • Simpson Manufacturing Co., Inc.
  • 5956 West Las Positas Boulevard
  • Pleasanton
  • California
  • 94588
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSDNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1994
TWLDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1994

Biography

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells building construction products. The company offers wood construction products, including connectors, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:46
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.