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 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 11.17% on a DCF basis. 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 78.34 -- which is good for besting 93.8% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 12.57% 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 2%; for context, that number is higher than 50.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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