Simpson Manufacturing Co., Inc. (SSD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AZEK Co., Inc.

Simpson Manufacturing Co., Inc.

SPX Technologies, Inc.

Allegion Plc

A. O. Smith Corp.

Watsco, Inc.

Carlisle Cos., Inc.

Fortune Brands Innovations, Inc.

Griffon Corp.

Otis Worldwide Corp.

Masco Corp.

Why is Simpson Manufacturing Co., Inc. ?

High Management Efficiency with a high ROCE of 30.35%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 13.98% and Operating profit at 15.93%

DIVIDEND PER SHARE(HY) Highest at USD 5.73
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by 0% (YoY)

With ROCE of 20.82%, it has a very expensive valuation with a 3.22 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.91%, its profits have fallen by -11.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Simpson Manufacturing Co., Inc. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Simpson Manufacturing Co., Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Simpson Manufacturing Co., Inc.

5.15%

0.22

30.79%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.97%

EBIT Growth (5y)

11.93%

EBIT to Interest (avg)

62.40

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.98

Tax Ratio

26.23%

Dividend Payout Ratio

13.96%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

30.35%

ROE (avg)

20.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.64

EV to EBIT

16.64

EV to EBITDA

13.84

EV to Capital Employed

3.65

EV to Sales

3.16

PEG Ratio

0.89

Dividend Yield

49.89%

ROCE (Latest)

21.95%

ROE (Latest)

17.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 21.48%

DIVIDEND PER SHARE(HY)

Highest at USD 7.95

RAW MATERIAL COST(Y)

Fallen by 1% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 4.1 %

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 302.97 MM

PRE-TAX PROFIT(Q)

At USD 75.32 MM has Fallen at -30.45%

OPERATING PROFIT(Q)

Lowest at USD 98.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.21 %

NET PROFIT(Q)

At USD 56.68 MM has Fallen at -29.55%

Here's what is working for Simpson Manufacturing Co., Inc.

Dividend per share

Highest at USD 7.95 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 21.48% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debt-Equity Ratio

Lowest at 4.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 24.96 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Simpson Manufacturing Co., Inc.

Operating Cash Flow

Lowest at USD 302.97 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 75.32 MM has Fallen at -30.45%

over average net sales of the previous four periods of USD 108.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 98.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 18.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At USD 56.68 MM has Fallen at -29.55%

over average net sales of the previous four periods of USD 80.45 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)