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 $7.1B against $5.5B — 1.3× the size. West Fraser Timber Co. Ltd. has negative trailing earnings, so its P/E is not meaningful; Simpson Manufacturing Company, Inc. trades at 19.2×. Simpson Manufacturing Company, Inc. grew revenue faster over the last twelve months: 6.48% against −10.2%. Simpson Manufacturing Company, Inc. has the higher net margin (15.7% vs −23.0%) and the higher return on invested capital (15.6% vs −15.9%). Both pay a dividend; West Fraser Timber Co. Ltd. yields more (1.55% vs 0.57%). 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 19.21 n/m —
P/S 2.99 1.07 0.69
P/B 3.42 1.01 1.37
Price to free cash flow 15.01 n/m —
EV/EBITDA 11.87 n/m —
EV/Sales 2.94 1.12 0.62
Earnings yield 5.21% (21.44%) 3.82%
Free cash flow yield 6.66% (8.20%) 5.26%

Profitability

Metric SSD WFG Lumber & Wood Production median
Gross margin 45.84% 7.01% 16.13%
Operating margin 20.61% (28.46%) 2.48%
Net margin 15.65% (22.98%) 1.64%
Free cash flow margin 20.75% (8.78%) 2.28%
Return on equity 18.72% (19.32%) 2.53%
Return on assets 12.41% (14.86%) 1.55%
Return on invested capital 15.60% (15.94%) 2.26%

Growth

Metric SSD WFG Lumber & Wood Production median
Revenue growth (TTM) 6.48% (10.18%) (4.72%)
EPS growth (last fiscal year) 8.42% (17,157.14%) —
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 0.16 0.06 0.12
Current ratio 3.29 2.06 3.00
Net debt to EBITDA (0.02) (0.15) (0.35)

Dividend

Metric SSD WFG Lumber & Wood Production median
Dividend yield 0.57% 1.55% —
Payout ratio 0.13 1.36 0.11

Size

Metric SSD WFG Lumber & Wood Production median
Market cap 7.12b 5.54b 3.51b

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