Simpson Manufacturing Co Inc

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SSD : NYSE : Industrial Goods
$41.39 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 155,900
07/26/16 - 4:02 PM ET

Financial Analysis


SIMPSON MANUFACTURING INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SIMPSON MANUFACTURING INC is extremely liquid. Currently, the Quick Ratio is 3.69 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.04% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)199.52176.49
EBITDA ($mil)34.0523.43
EBIT ($mil)26.6216.02
Net Income ($mil)16.3410.05


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)232.03233.59
Total Assets ($mil)968.96952.66
Total Debt ($mil)0.00.0
Equity ($mil)864.26855.29


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin50.148.11
EBITDA Margin17.0613.27
Operating Margin13.349.07
Sales Turnover0.840.8
Return on Assets7.656.45
Return on Equity8.587.18
Debt Q1 FY16 Q1 FY15
Current Ratio5.947.24
Debt/Capital0.00.0
Interest Expense0.240.04
Interest Coverage113.26457.6


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)48.3249.36
Div / share0.160.28
EPS0.340.2
Book value / share17.8917.33
Institutional Own % n/a n/a
Avg Daily Volume160324.0153274.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 72.33 for the Building Products industry and a value on par with the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 34.80. The price-to-sales ratio is above the S&P 500 average and well above the industry 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 within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SSD 26.95 Peers 72.33   SSD 17.75 Peers 16.34

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.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SSD 20.56 Peers 21.63   SSD 1.16 Peers 0.98

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SSD is trading at a premium to 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SSD 2.28 Peers 34.80   SSD 20.80 Peers 421.10

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 significant 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SSD 2.41 Peers 1.78   SSD 7.46 Peers 9.34

Premium. 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 significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SSD trails its peers on the basis of sales growth

 

 

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