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Simpson Manufacturing Co., Inc. (NYSE:SSD) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SSD, it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Simpson Manufacturing here.
Excellent balance sheet with solid track record
In the previous year, SSD has ramped up its bottom line by 30%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, SSD also outperformed its industry, which delivered a growth of 24%. This is an optimistic signal for the future. SSD's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SSD's has produced operating cash levels of 63.14x total debt over the past year, which implies that SSD's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Simpson Manufacturing, there are three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SSD’s future growth? Take a look at our free research report of analyst consensus for SSD’s outlook.
- Valuation: What is SSD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SSD is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.