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 50th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for SSD, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 85.55 -- which is good for besting 96% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 13.75% of the free cash flow producing stocks we're observing.
SSD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.96% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AVNT, AVD, NRP, RGLD, and SCL can be thought of as valuation peers to SSD, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
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 in the Jefferies Virtual Industrials Conference on Wednesday, August 5, 2020. Simpson is scheduled to present at 2:25 p.m. ET and will participate in meetings with investors throughout the day.