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Simpson Manufacturing Co
(NYSE:SSD)
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Rating:75Outperform
Price Target:
$205.00
▲(10.85% Upside)
Action:Reiterated
Date:10/27/26
SSD scores well primarily due to strong financial quality—high margins and a conservatively leveraged balance sheet. The score is held back by slowing revenue growth and a meaningful recent decline in free cash flow, plus only moderate technical strength (below the 100/200-day averages). Valuation is reasonable but not compelling, and the latest earnings call balanced solid execution with cautious margin and demand guidance into Q4 and a flattish 2027 outlook.
Positive Factors
Strong profitability and conservative leverage
High profitability combined with minimal leverage gives Simpson substantial resilience through construction cycles. The strong margin structure supports reinvestment and pricing flexibility, while the conservative balance sheet reduces financial risk and preserves capacity for strategic investment or shareholder returns.
Negative Factors
Cooling demand and limited market support
Slowing revenue growth and a market outlook that offers little support could constrain near-term operating leverage and make growth increasingly dependent on pricing, share gains, and execution. A flat or weaker construction backdrop may also limit the pace of recovery in volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and conservative leverage
High profitability combined with minimal leverage gives Simpson substantial resilience through construction cycles. The strong margin structure supports reinvestment and pricing flexibility, while the conservative balance sheet reduces financial risk and preserves capacity for strategic investment or shareholder returns.
Read all positive factors
Simpson Manufacturing Co Key Performance Indicators (KPIs)
Any
Operating Income by Geography
Shows how profitable Simpson is in different regions, revealing where margins are strongest or weakest and helping investors spot geographic advantages, cost pressures, or markets that drive overall earnings.
Shows how profitable Simpson is in different regions, revealing where margins are strongest or weakest and helping investors spot geographic advantages, cost pressures, or markets that drive overall earnings.
Data provided by:
The Fly
The FlySimpson Manufacturing Co (SSD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.86B
Dividend Yield0.62%
Average Volume (3M)342.03K
Price to Earnings (P/E)20.6
Beta (1Y)0.73
Revenue Growth6.48%
EPS Growth16.55%
CountryUS
Employees5,545
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)9.29
Shares Outstanding40,984,680
10 Day Avg. Volume376,772
30 Day Avg. Volume342,034
Financial Highlights & Ratios
PEG Ratio2.37
Price to Book (P/B)3.32
Price to Sales (P/S)2.89
P/FCF Ratio22.63
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda11.26
Forecast
1Y Price Target
$209.50Price Target Upside13.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)9.19
Revenue Forecast (FY)$2.42B
Simpson Manufacturing Co Business Overview & Revenue Model
Company Description
Simpson Manufacturing Co., Inc., through its various divisions, stands as a prominent entity specializing in the conceptualization, engineering, production, and distribution of vital components for both wood and concrete construction projects. The...
How the Company Makes Money
Simpson Manufacturing makes money primarily by selling construction hardware and structural systems to the building industry. Its core revenue stream comes from product sales under the Simpson Strong-Tie brand, including (a) wood-to-wood/wood-to-c...
Simpson Manufacturing Co Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 08, 2027
Earnings Call Sentiment Positive
The call was broadly constructive, with revenue growth, strong adjusted EBITDA and net income, North American share gains, strong commercial and OEM momentum, substantial cash flow and expanded shareholder returns. However, the company is operating against significant market and cost pressures, including declining European sales and volumes, softer national retail demand, steel inflation, lower gross margins, a reduced full-year margin outlook and an expected fourth-quarter margin step-down. Highlights outweighed the lowlights, but management remained cautious about near-term demand and profitability.Positive Updates
Consolidated Net Sales Growth
Third-quarter net sales increased 2.3% year-over-year to $638.1 million, primarily driven by pricing, which contributed 2.5% to the increase, while global sales volumes were relatively flat.
Negative Updates
European Sales and Volumes Declined
Europe net sales decreased 3.4% year-over-year to $129.9 million, driven by a 5% volume decline, unfavorable foreign currency translation and market conditions that became less favorable amid higher interest rates and broader economic headwinds, particularly in France. On a local-currency basis, sales declined 2.1%.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Net Sales Growth
Third-quarter net sales increased 2.3% year-over-year to $638.1 million, primarily driven by pricing, which contributed 2.5% to the increase, while global sales volumes were relatively flat.
Read all positive updates
Company Guidance
For the full year ending December 31, 2026, Simpson expects consolidated operating margin of 20.0% to 20.5%, U.S. housing starts to be down in the low single-digit range, a lower overall gross margin based on rising raw material and freight costs, imposed tariffs and increased depreciation costs, approximately $4 million of footprint optimization costs in Europe, and approximately an $11 million gain on the sale of vacant land in the fourth quarter of 2026; effective tax rate is estimated to be in the range of 25% to 26%, and capital expenditures are expected to be in the range of $80 million to $90 million. The company anticipates volume being down slightly for the remainder of the year, Europe to be a flat to slightly declining market, less than 1% help from price in Q4 before new pricing kicks in, and fourth-quarter operating income in the somewhere in the 14-ish range, maybe even a little bit less than that, kind of upper 13% range; for 2027, the early indication is flattish, with no help from the market next year and maybe a little bit of a headwind.Simpson Manufacturing Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.44B | 2.33B | 2.23B | 2.21B | 2.12B | 1.57B |
| Gross Profit | 1.11B | 1.07B | 1.03B | 1.04B | 941.17M | 754.71M |
| EBITDA | 609.27M | 552.42M | 520.74M | 558.69M | 521.62M | 401.88M |
| Net Income | 380.60M | 345.08M | 322.22M | 353.99M | 334.00M | 266.45M |
Balance Sheet | ||||||
| Total Assets | 3.12B | 3.07B | 2.74B | 2.70B | 2.50B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 491.25M | 384.14M | 239.37M | 429.82M | 300.74M | 301.15M |
| Total Debt | 390.61M | 487.58M | 480.66M | 551.57M | 635.47M | 45.86M |
| Total Liabilities | 979.60M | 1.04B | 923.03M | 1.02B | 1.09B | 300.13M |
| Stockholders Equity | 2.15B | 2.03B | 1.81B | 1.68B | 1.41B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 334.45M | 297.62M | 157.80M | 338.20M | 337.46M | 101.70M |
| Operating Cash Flow | 404.17M | 458.66M | 338.16M | 427.02M | 399.82M | 151.29M |
| Investing Cash Flow | -56.03M | -136.23M | -259.26M | -103.25M | -870.24M | -58.80M |
| Financing Cash Flow | -205.99M | -186.08M | -261.46M | -199.03M | 465.53M | -71.62M |
Simpson Manufacturing Co Technical Analysis
Positive
184.93
Price Trends
177.67
Positive
185.80
Positive
184.86
Positive
Market Momentum
3.16
Negative
66.87
Neutral
85.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSD, the sentiment is Positive. The current price of 184.93 is above the 20-day moving average (MA) of 177.31, above the 50-day MA of 177.67, and above the 200-day MA of 184.86, indicating a bullish trend. The MACD of 3.16 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 85.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSD.
Simpson Manufacturing Co Risk Analysis
Simpson Manufacturing Co disclosed 42 risk factors in its most recent earnings report. Simpson Manufacturing Co reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Simpson Manufacturing Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.86B | 20.63 | 17.50% | 0.62% | 6.48% | 16.55% | |
71 Outperform | $13.84B | 19.90 | 41.06% | 1.31% | 1.90% | -2.79% | |
70 Outperform | $5.08B | 29.67 | 17.38% | ― | 6.97% | -2.53% | |
66 Neutral | $15.28B | 104.24 | 2.27% | 2.70% | 42.93% | -67.45% | |
62 Neutral | $917.90M | 20.16 | 6.19% | 1.60% | 1.26% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $6.10B | 61.63 | 2.46% | ― | -9.38% | -86.05% |
* Basic Materials Sector Average
SSD
Simpson Manufacturing Co
190.74
12.45
6.99%
BLDR
Builders Firstsource
55.88
-59.41
-51.53%
CSL
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345.21
18.27
5.59%
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19.80
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39.23%
TREX
Trex Company
49.54
0.90
1.85%
JHX
James Hardie Industries PLC
26.06
4.70
22.00%
Simpson Manufacturing Co Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Simpson Manufacturing Authorizes Major New Share Repurchase Program
Positive
Oct 26, 2026
In the third quarter of 2026, Simpson Manufacturing reported net sales of $638.1 million, up 2.3% year over year, with income from operations essentially flat at $141.0 million and diluted earnings per share rising 3.9% to $2.68. Adjusted EBITDA g...
Business Operations and StrategyFinancial Disclosures
Simpson Manufacturing Adjusts Land Sale Timing, Guidance Intact
Neutral
Oct 6, 2026
On October 6, 2026, Simpson Manufacturing Co., Inc. reported a change in the anticipated timing of a land sale in Stockton, California, noting that the transaction, originally expected to close in the third quarter of 2026, actually closed in the ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Simpson Manufacturing Posts Strong Q2 2026 Results
Positive
Jul 27, 2026
Simpson Manufacturing reported strong financial results for the quarter ended June 30, 2026, with net sales rising 6.3% year over year to $671.1 million and net income per diluted share climbing 25.1% to $3.09, supported by margin expansion and co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.