Simpson Manufacturing Company Inc.
Find Ratings ReportsSIMPSON MANUFACTURING INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SIMPSON MANUFACTURING INC has strong liquidity. Currently, the Quick Ratio is 1.98 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 18.84% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 501.71 | 475.62 |
EBITDA ($mil) | 92.53 | 99.1 |
EBIT ($mil) | 72.05 | 82.73 |
Net Income ($mil) | 54.8 | 57.61 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 429.82 | 300.74 |
Total Assets ($mil) | 2704.72 | 2503.97 |
Total Debt ($mil) | 551.57 | 635.47 |
Equity ($mil) | 1679.75 | 1413.38 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 48.03 | 45.93 |
EBITDA Margin | 18.44 | 20.83 |
Operating Margin | 14.36 | 17.39 |
Sales Turnover | 0.82 | 0.85 |
Return on Assets | 13.08 | 13.33 |
Return on Equity | 21.07 | 23.63 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 3.63 | 3.38 |
Debt/Capital | 0.25 | 0.31 |
Interest Expense | 0.0 | 1.03 |
Interest Coverage | 0.0 | 80.63 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 42.32 | 42.56 |
Div / share | 0.27 | 0.26 |
EPS | 1.28 | 1.35 |
Book value / share | 39.69 | 33.21 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 218842.0 | 235863.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 43.07 for the Fabricated Metal Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.95 indicates valuation on par with the S&P 500 average of 4.68 and a discount versus the subsector average of 5.58. The current price-to-sales ratio is well above the S&P 500 average and above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, SIMPSON MANUFACTURING INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SSD 23.81 | Peers 43.07 | SSD 19.49 | Peers 25.53 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SSD is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SSD is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SSD 19.98 | Peers 21.13 | SSD 4.10 | Peers 2.46 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. SSD is trading at a valuation on par with its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SSD trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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SSD 4.95 | Peers 5.58 | SSD 6.58 | Peers 31.55 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SSD is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SSD is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SSD 3.76 | Peers 3.60 | SSD 4.61 | Peers 9.90 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SSD is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SSD significantly trails its peers on the basis of sales growth. |
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