NYSE:SSD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


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

Stable Share Price: SSD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

SSD

-8.8%

US Building

-3.8%

US Market


1 Year Return

-7.6%

SSD

-26.6%

US Building

-15.9%

US Market

Return vs Industry: SSD exceeded the US Building industry which returned -26.6% over the past year.

Return vs Market: SSD exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

SSDIndustryMarket
7 Day-5.0%-8.8%-3.8%
30 Day-31.5%-33.6%-17.4%
90 Day-30.4%-37.1%-24.1%
1 Year-6.4%-7.6%-25.4%-26.6%-14.1%-15.9%
3 Year43.4%37.2%-23.0%-26.6%10.0%2.8%
5 Year71.1%58.0%-9.5%-21.1%27.6%13.5%

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?

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSD ($56.58) is trading below our estimate of fair value ($79.24)

Significantly Below Fair Value: SSD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSD is poor value based on its PE Ratio (18.9x) compared to the Building industry average (13.7x).

PE vs Market: SSD is poor value based on its PE Ratio (18.9x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: SSD is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: SSD is overvalued based on its PB Ratio (2.8x) compared to the US Building industry average (1x).


Next Steps

Future Growth

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

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSD's forecast earnings growth (6.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SSD's earnings (6.6% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: SSD's revenue (3.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SSD's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSD's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Simpson Manufacturing performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSD has high quality earnings.

Growing Profit Margin: SSD's current net profit margins (11.8%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: SSD's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: SSD's earnings growth over the past year (5.8%) is below its 5-year average (15.7% per year).

Earnings vs Industry: SSD earnings growth over the past year (5.8%) exceeded the Building industry -15.9%.


Return on Equity

High ROE: SSD's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Simpson Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: SSD's short term assets ($640.9M) exceed its short term liabilities ($158.9M).

Long Term Liabilities: SSD's short term assets ($640.9M) exceed its long term liabilities ($44.5M).


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%.

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: Insufficient data to determine if SSD's debt is covered by short term assets.


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SSD's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: SSD's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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 (30.4%), SSD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSD's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Karen Colonias (62yo)

8.25s

Tenure

US$3,386,714

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 ($USD3.39M) is below average for companies of similar size in the US market ($USD5.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karen Colonias
President8.25yrsUS$3.39m0.26% $6.5m
Brian Magstadt
CFO & Treasurer8.25yrsUS$1.29m0.12% $3.0m
Kevin Swartzendruber
Senior Vice President of Finance2.5yrsUS$619.56k0.0037% $92.4k
Roger Dankel
President of North American Sales - Simpson Strong-Tie Company Inc5.75yrsUS$1.13m0.069% $1.7m
Terrence Hammons
Senior VP0.92yrno datano data

5.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SSD's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karen Colonias
President8.25yrsUS$3.39m0.26% $6.5m
James Andrasick
Independent Chairman of the Board1.25yrsUS$307.45k0.020% $505.8k
Gary Cusumano
Independent Director12.92yrsUS$197.51k0.043% $1.1m
Michael Bless
Independent Director2.92yrsUS$187.51k0.010% $258.3k
Jennifer Chatman
Independent Director16.17yrsUS$197.51k0.029% $732.5k
Robin MacGillivray
Independent Director16.17yrsUS$188.16k0.028% $705.6k
Celeste Ford
Independent Director6.25yrsUS$204.51k0.025% $633.1k
Philip Donaldson
Independent Director2yrsUS$197.51k0.0070% $175.2k

6.5yrs

Average Tenure

62yo

Average Age

Experienced Board: SSD's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.510b
  • Shares outstanding: 44.37m
  • 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 wood and concrete building construction products. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners, shearwalls, and pre-fabricated lateral systems that are used in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as for concrete construction repair, protection, and strengthening applications, which include grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products. It also provides connectors and lateral products for wood framing, timber and offsite construction, mid-rise steel construction, and cold formed steel applications; fasteners, which include various nails, screws, and staples for decking, subfloors, drywall, and roofing applications; and mechanical anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitates the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. Simpson Manufacturing Co., Inc. was founded in 1956 and is headquartered in Pleasanton, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 09:51
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.