Simpson Manufacturing Company, Inc. (SSD) vs West Fraser Timber Co. Ltd. (WFG)

Simpson Manufacturing Company, Inc. and West Fraser Timber Co. Ltd. are both Lumber & Wood Production companies. Simpson Manufacturing Company, Inc. is the larger, with a market value of $8.2B against $5.4B — 1.5× the size. West Fraser Timber Co. Ltd. has negative trailing earnings, so its P/E is not meaningful; Simpson Manufacturing Company, Inc. trades at 21.2×. Simpson Manufacturing Company, Inc. grew revenue faster over the last twelve months: 5.44% against −7.15%. Simpson Manufacturing Company, Inc. has the higher net margin (15.6% vs −20.4%) and the higher return on invested capital (15.9% vs −14.2%). Both pay a dividend; West Fraser Timber Co. Ltd. yields more (1.89% vs 0.60%). Across the 20 metrics below, Simpson Manufacturing Company, Inc. leads on 14 and West Fraser Timber Co. Ltd. on 6.

Valuation

Metric SSD WFG Lumber & Wood Production median
P/E 21.22 n/m —
P/S 3.28 1.00 0.66
P/B 3.78 0.97 1.29
Price to free cash flow 16.61 n/m —
EV/EBITDA 13.04 n/m —
EV/Sales 3.21 1.07 0.59
Earnings yield 4.71% (20.37%) 4.71%
Free cash flow yield 6.02% (7.70%) 5.42%

Profitability

Metric SSD WFG Lumber & Wood Production median
Gross margin 45.66% 9.65% 15.41%
Operating margin 20.50% (24.66%) 2.78%
Net margin 15.62% (20.40%) 1.82%
Free cash flow margin 0.00% (7.71%) 2.04%
Return on equity 0.00% (17.86%) 0.00%
Return on assets 12.34% (13.46%) 1.77%
Return on invested capital 15.94% (14.15%) 2.66%

Growth

Metric SSD WFG Lumber & Wood Production median
Revenue growth (TTM) 5.44% (7.15%) (0.71%)
EPS growth (last fiscal year) 8.42% (17,157.14%) (44.63%)
Revenue growth, 5-year CAGR 12.97% 4.55% 3.68%
Net income growth, 5-year CAGR 13.04% 0.00% 0.00%

Health

Metric SSD WFG Lumber & Wood Production median
Debt to equity 0.14 0.09 0.12
Current ratio 3.37 2.29 3.10
Net debt to EBITDA (0.02) (0.15) (0.35)

Dividend

Metric SSD WFG Lumber & Wood Production median
Dividend yield 0.60% 1.89% —
Payout ratio 0.13 — —

Size

Metric SSD WFG Lumber & Wood Production median
Market cap 8.15b 5.42b 3.58b

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