Simpson Manufacturing Intrinsic Value Calculator – 2023 MSCI Stock Significantly Outperforms Simpson Manufacturing, Despite Counterintuitive Valuation.
March 29, 2023
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The remarkable performance of MSCI stock in 2023 has been impressive, significantly outperforming Simpson Manufacturing ($NYSE:SSD) (SSD). Despite SSD having a much lower valuation than MSCI, the performance has been unexpectedly strong. This appears to be counterintuitive, since investors would usually opt for stocks with a higher valuation. This raises the question: What has made MSCI’s stock so successful? The answer is likely rooted in the company’s strategic investments and focus on innovation. MSCI has made a series of shrewd investments into new technology and markets, positioning them for future growth.
Additionally, their commitment to research, development and customer service has allowed them to craft a unique and highly-regarded product portfolio, which has helped drive sales and bolster their stock price. Meanwhile, Simpson Manufacturing (SSD) has focused largely on short-term profits, at the expense of long-term growth initiatives. This has led to relatively stagnant stock performance compared to other companies in its sector. Furthermore, the low valuation of the stock may be due to a lack of confidence in the company’s future prospects. In summary, it appears that MSCI’s strong 2023 performance was due to their strategic investments and focus on innovation, while Simpson Manufacturing (SSD) has lagged behind due to a lack of long-term investments and overall strategy. Despite the counterintuitive valuation, the difference in performance between the two stocks is undeniable.
Share Price
On Friday, Simpson Manufacturing stock opened at $102.8 and closed at $104.3, up by a mere 0.2% from its prior closing price of 104.1. This counterintuitive result is surprising given that Simpson Manufacturing is currently trading at a higher valuation than MSCI. Nevertheless, investors have continued to show trust in the company and the value of its stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Simpson Manufacturing. More…
| Total Revenues | Net Income | Net Margin |
| 2.12k | 334 | 16.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Simpson Manufacturing. More…
| Operations | Investing | Financing |
| 399.82 | -870.24 | 465.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Simpson Manufacturing. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.5k | 1.09k | 33.21 |
Key Ratios Snapshot
Some of the financial key ratios for Simpson Manufacturing are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.0% | 39.4% | 21.5% |
| FCF Margin | ROE | ROA |
| 15.7% | 20.7% | 11.4% |
Analysis – Simpson Manufacturing Intrinsic Value Calculator
At GoodWhale, we conducted an analysis of SIMPSON MANUFACTURING‘s wellbeing. Through our proprietary Valuation Line, we determined that the intrinsic value of their share is around $138.9. Currently, SIMPSON MANUFACTURING stock is traded at $104.3, which is 24.9% below its intrinsic value. This implies that the stock of SIMPSON MANUFACTURING is undervalued and could be a good investment opportunity for potential buyers. More…
Peers
Simpson Manufacturing Co Inc is one of the largest manufacturers of building materials in the United States. The company’s products are used in residential and commercial construction, as well as in industrial and infrastructure applications. Simpson has a diversified product portfolio that includes wood products, steel products, and concrete products. The company’s products are sold through a network of distributors and retailers. Simpson Manufacturing Co Inc has a strong market position in the United States, with a market share of approximately 15%. Simpson’s main competitors are Sankyo Tateyama Inc, Korporacja Budowlana Dom SA, and Licogi 16 JSC. These companies are all large manufacturers of building materials with a strong presence in the United States.
– Sankyo Tateyama Inc ($TSE:5932)
Sankyo Tateyama Inc is a Japanese company that manufactures and sells pharmaceuticals and medical devices. The company has a market capitalization of 16.87 billion as of 2022 and a return on equity of 0.94%. Sankyo Tateyama is a leading manufacturer of prescription drugs and over-the-counter drugs in Japan. The company also manufactures and sells medical devices, including blood pressure monitors, blood glucose monitors, and blood pressure cuffs.
– Korporacja Budowlana Dom SA ($LTS:0LZA)
Korporacja Budowlana Dom SA is a construction company that operates in Poland. The company focuses on the construction of residential, commercial, and industrial buildings. As of 2022, the company has a market cap of 2.65M and a ROE of 4.11%.
Summary
Simpson Manufacturing (SIMPS) has recently exhibited counterintuitive movements in the stock market despite being significantly outperformed by the MSCI index. Despite this, SIMPS remains a viable investment option due to its strong financial fundamentals. Its current price-to-earnings ratio is lower than the industry average, suggesting that the company is undervalued, while its return on equity is higher than the industry average, suggesting potential for increased returns. Furthermore, SIMPS has a healthy balance sheet with minimal debt and a low debt-to-equity ratio.
This indicates that the company has adequate resources to grow and develop, and is less vulnerable to economic downturns. In conclusion, due to its strong financials and attractive valuation, investors should consider SIMPS as a potential investment option.
