Simpson Manufacturing Company, Inc. (SSD) Company Bio
Simpson Manufacturing designs, engineers, manufactures, and sells building construction products. The Company also offers concrete construction products used for concrete, masonry, steel and for concrete repair, protection and strengthening, including adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforced materials. The company was founded in 1956 and is based in Pleasanton, California.
SSD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Simpson Manufacturing Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Simpson Manufacturing Co Inc ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 33.67%. In terms of the factors that were most noteworthy in this DCF analysis for SSD, they are:
Interest coverage, a measure of earnings relative to interest payments, is 97.59; that's higher than 94.86% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 11.4% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SSD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 48.16% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SSD, try NRP, MEOH, TECK, NP, and RFP.
Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, announced today that it will report its financial results for the fourth quarter and full year ended December 31, 2020 on Monday, February 8, 2021 at 4:15 p.m. Eastern Time. Karen Colonias, Simpson's President and Chief Executive Officer, and Brian Magstadt, Chief Financial Officer and Treasurer, will host a conference call that same day at 5:00 p.m. Eastern Time. The call will be broadcast live over the Internet hosted on the Investor Relations section of the Company's website at www.simpsonmfg.com.
Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, announced today that Karen Colonias, President and Chief Executive Officer, and Brian Magstadt, Chief Financial Officer and Treasurer, will participate virtually in the CJS 21st Annual New Ideas for the New Year Conference on Wednesday, January 13, 2021. Simpson is scheduled to present virtually at 11:00 a.m. ET and will participate in meetings with investors throughout the day.