Simpson Manufacturing Intrinsic Value – Simpson Manufacturing: A Promising Stock to Watch in Today’s Market Climate

April 2, 2024

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Simpson Manufacturing ($NYSE:SSD) is a leading manufacturer of building materials and construction products, providing innovative solutions for contractors, builders, and DIY enthusiasts alike. With a long history of success and a promising future, Simpson Manufacturing has caught the attention of many investors in today’s market climate. But should it be on your watchlist as well?

First, let’s take a closer look at Simpson Manufacturing as a company. They offer a wide range of products, including structural connectors, fasteners, adhesives, and more, all designed to enhance the strength, safety, and durability of various construction projects. One of the factors that make Simpson Manufacturing a promising stock to watch is its consistent financial performance. Furthermore, Simpson Manufacturing has a strong balance sheet with low debt levels, providing a stable foundation for future growth. Another key point to consider is the growing demand for construction materials and products. With the rise in housing and commercial construction projects, Simpson Manufacturing is well-positioned to capitalize on this trend.

Additionally, the company has been investing in research and development to expand its product portfolio and stay ahead of the market’s evolving needs. Lastly, Simpson Manufacturing has a track record of delivering value to its shareholders through consistent dividend payments and share buybacks. This demonstrates the company’s commitment to creating long-term value for its investors. In conclusion, Simpson Manufacturing has proven itself as a strong and reliable company in the construction industry. With its financial stability, diverse product offerings, and commitment to shareholders’ value, it is certainly a stock worth considering for your watchlist in today’s market climate. As always, it is essential to conduct thorough research and seek professional advice before making any investment decisions.

Market Price

Simpson Manufacturing, a leading manufacturer of construction and building products, has been making headlines in the stock market lately. On Tuesday, the company’s stock opened at $198.3 and closed at $199.9, representing a 0.9% increase from its previous closing price of $198.1. One of the key factors contributing to Simpson Manufacturing’s strong performance is the current state of the construction industry. With an increasing demand for housing and infrastructure projects, the company’s products are in high demand, leading to a steady growth in revenue and profits. Additionally, Simpson Manufacturing has a strong track record of providing high-quality products that are essential for the construction sector, making it a reliable choice for investors. Moreover, the company has recently made significant investments in research and development, focusing on innovation and sustainability. This has resulted in the launch of new, more efficient products that have gained popularity in the market. These advancements not only provide a competitive edge for Simpson Manufacturing but also showcase its commitment to meeting the changing needs of the construction industry. The company has a solid balance sheet with minimal debt, giving it the flexibility to invest in growth opportunities.

In addition, its strong cash position allows for dividend payments, which is appealing to investors looking for stable returns. Furthermore, Simpson Manufacturing has a successful global presence, with operations in North America, Europe, and Asia. This diversification reduces its dependence on any one market and minimizes risks associated with economic fluctuations in a specific region. As the construction industry continues to thrive, investors can expect to see further positive developments for this company, making it a potential profitable investment in the long term. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Simpson Manufacturing. More…

    Total Revenues Net Income Net Margin
    2.21k 353.99 16.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Simpson Manufacturing. More…

    Operations Investing Financing
    534.6 -870.24 465.53
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    2.7k 1.02k 39.12
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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
    20.4% 23.9% 21.7%
    FCF Margin ROE ROA
    20.4% 18.0% 11.1%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Simpson Manufacturing Intrinsic Value

    During my analysis of SIMPSON MANUFACTURING‘s financial statements, I found some key points that stood out to me. Firstly, the company’s revenue has been steadily increasing over the past few years, with a significant jump in the most recent year. This indicates strong growth potential for the company. In terms of profitability, SIMPSON MANUFACTURING has a healthy gross profit margin and has consistently been able to generate positive net income. However, the company’s operating expenses have also been increasing, which is something to keep an eye on. One key highlight of SIMPSON MANUFACTURING is their strong balance sheet. The company has a low debt-to-equity ratio, indicating that they are not heavily reliant on debt to finance their operations. Additionally, their current assets far outweigh their current liabilities, giving them a good buffer for any potential financial challenges. Based on our proprietary Valuation Line calculation, the fair value of SIMPSON MANUFACTURING’s share is approximately $144.6. This means that the current stock price of $199.9 is overvalued by 38.3%. While this may seem concerning, it could also be an indication of investor confidence and high demand for the company’s stock. As a financial analyst, I would recommend keeping an eye on SIMPSON MANUFACTURING’s stock and its valuation. While the company’s financials look strong and promising, an overvalued stock price could potentially lead to a correction in the future. Investors should carefully consider their options before making any decisions regarding SIMPSON MANUFACTURING stock. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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 is a company that designs, engineers, and manufactures construction products for the residential and commercial construction markets. As an investor, there are several key factors to consider before putting SIMPSON MANUFACTURING on your watchlist. These include the company’s financial performance, market trends in the construction industry, and potential for growth in new markets.

    Additionally, evaluating the company’s competitive advantage and management team can provide valuable insights into its long-term potential. With a strong track record of consistent revenue and earnings growth, as well as a solid balance sheet, SIMPSON MANUFACTURING may be worth considering for potential investment opportunities.

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