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Simpson Manufacturing Co
(NYSE:SSD)
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Rating:73Outperform
Price Target:
$220.00
â–²(24.81% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by strong financial quality (high margins, very low leverage, and solid cash generation). The latest earnings call supports the outlook with reaffirmed ~20% operating-margin guidance and stronger pricing realization, though tariffs/input costs, Europe weakness, and softer housing-start expectations add risk. Technicals are the main drag, with weak near-term momentum and the stock trading below key moving averages, while valuation is acceptable but not compelling given the low dividend yield.
Positive Factors
High and Stable Profitability
Sustained high gross and net margins indicate enduring product-level profitability and pricing power in structural connectors and fasteners. These margins support durable earnings generation, fund reinvestment, and help absorb cyclical volume swings inherent to construction markets.
Negative Factors
Gross Margin Pressure From Costs & Tariffs
Ongoing tariff exposure, rising input and labor costs, and start-up related factory inefficiencies create persistent downward pressure on gross margins. If tariffs or raw material inflation persist, margin normalization could continue to constrain long-term profit expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Profitability
Sustained high gross and net margins indicate enduring product-level profitability and pricing power in structural connectors and fasteners. These margins support durable earnings generation, fund reinvestment, and help absorb cyclical volume swings inherent to construction markets.
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
$7.70B
Dividend Yield0.69%
Average Volume (3M)319.06K
Price to Earnings (P/E)22.0
Beta (1Y)0.83
Revenue Growth6.31%
EPS Growth11.06%
CountryUS
Employees5,872
SectorBasic Materials
Sector Strength58
IndustryConstruction
Share Statistics
EPS (TTM)8.57
Shares Outstanding41,138,325
10 Day Avg. Volume276,395
30 Day Avg. Volume319,064
Financial Highlights & Ratios
PEG Ratio2.37
Price to Book (P/B)3.32
Price to Sales (P/S)2.89
P/FCF Ratio22.79
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.37
Enterprise Value/Gross Profit7.40
Enterprise Value/Ebitda14.12
Forecast
1Y Price Target
$214.75Price Target Upside21.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)9.07
Revenue Forecast (FY)$2.43B
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 primarily makes money by selling construction connectors, fasteners, anchors, and related building systems under the Simpson Strong-Tie brand. Revenue is generated from product sales to distribution channels (such as building...
Simpson Manufacturing Co Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call highlights solid top-line growth, strong adjusted EBITDA and EPS improvement driven by pricing, cost discipline and targeted growth in higher-margin segments (component manufacturing and OEM). The company also strengthened liquidity, reduced inventory and returned capital to shareholders. Offsetting these positives are notable gross margin pressure (tariffs, higher input and labor costs and Gallatin start-up costs), Europe volume weakness and a softer housing-start outlook for 2026. Management's tone is constructive but cautious, emphasizing execution, pricing realization (~$130M annualized) and cost actions to mitigate headwinds while acknowledging near-term market uncertainty.Positive Updates
Consolidated Revenue Growth
Net sales of $588.0M, up 9.1% year-over-year; North America net sales $461.9M, up 9.8%; Europe net sales $121.0M, up 6.3% (FX-driven). 2025 pricing contributed ~6% and foreign exchange ~3%, partially offset by ~1% volume decline.
Negative Updates
Gross Margin Compression
Consolidated gross margin declined 130 basis points to 45.2% YoY, driven by higher material, factory & tooling and labor costs, tariff impacts and product mix, including ~100 bps headwind from Gallatin facility start-up costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net sales of $588.0M, up 9.1% year-over-year; North America net sales $461.9M, up 9.8%; Europe net sales $121.0M, up 6.3% (FX-driven). 2025 pricing contributed ~6% and foreign exchange ~3%, partially offset by ~1% volume decline.
Read all positive updates
Company Guidance
Simpson’s full‑year 2026 guidance calls for a consolidated operating margin of 19.5%–20.5% (aligned with its ambition to hold operating income at or above 20%), assumes U.S. housing starts will be down in the low single digits and Europe will be flat-to-modest growth, and reflects a higher realization of 2025 price actions now expected to contribute roughly $130 million of annualized net sales (about $70 million incremental in 2026); management also expects $3M–$5M of footprint‑optimization costs in Europe, a $10M–$12M benefit from a vacant‑land sale in H2, an effective tax rate of 25%–26%, capital expenditures of $75M–$85M, ongoing tariff‑ and depreciation‑related gross margin pressure, and remains committed to returning at least 35% of free cash flow to shareholders (supported by a Board‑authorized $150M repurchase program for 2026).Simpson Manufacturing Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.38B | 2.33B | 2.23B | 2.21B | 2.12B | 1.57B |
| Gross Profit | 1.08B | 1.07B | 1.03B | 1.04B | 941.17M | 754.71M |
| EBITDA | 568.76M | 550.95M | 520.74M | 558.69M | 532.95M | 411.44M |
| Net Income | 355.42M | 345.08M | 322.22M | 353.99M | 334.00M | 266.45M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 3.07B | 2.74B | 2.70B | 2.50B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 341.00M | 384.14M | 239.37M | 429.82M | 300.74M | 301.15M |
| Total Debt | 481.74M | 487.58M | 480.66M | 551.57M | 635.47M | 45.86M |
| Total Liabilities | 978.37M | 1.04B | 923.03M | 1.02B | 1.09B | 300.13M |
| Stockholders Equity | 2.06B | 2.03B | 1.81B | 1.68B | 1.41B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 356.14M | 295.63M | 157.80M | 338.20M | 337.46M | 101.70M |
| Operating Cash Flow | 484.66M | 456.67M | 338.16M | 427.02M | 399.82M | 151.29M |
| Investing Cash Flow | -105.30M | -136.35M | -259.26M | -103.25M | -870.24M | -58.80M |
| Financing Cash Flow | -210.10M | -183.98M | -261.46M | -199.03M | 465.53M | -71.62M |
Simpson Manufacturing Co Technical Analysis
Neutral
176.27
Price Trends
191.52
Negative
186.41
Positive
179.66
Positive
Market Momentum
1.04
Positive
41.68
Neutral
6.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSD, the sentiment is Neutral. The current price of 176.27 is below the 20-day moving average (MA) of 198.00, below the 50-day MA of 191.52, and below the 200-day MA of 179.66, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 6.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.70B | 22.01 | 17.68% | 0.69% | 6.31% | 11.06% | |
73 Outperform | $6.48B | 21.86 | 34.81% | 0.66% | 9.71% | 13.17% | |
67 Neutral | $11.12B | 26.98 | 22.43% | 0.47% | 5.03% | -5.49% | |
65 Neutral | $8.84B | 76.03 | 13.40% | 0.53% | 28.27% | -25.82% | |
65 Neutral | $11.07B | -21.00 | -12.50% | 2.43% | -12.20% | -333.77% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $5.82B | 22.01 | 11.48% | 1.91% | -2.01% | -34.26% |
* Basic Materials Sector Average
SSD
Simpson Manufacturing Co
188.80
23.09
13.93%
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OC
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143.35
-0.51
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150.47
30.83
25.77%
Simpson Manufacturing Co Corporate Events
Executive/Board ChangesShareholder Meetings
Simpson Manufacturing Holds Annual Meeting, Elects Board Directors
Positive
May 18, 2026
On May 6, 2026, Simpson Manufacturing Co. held its Annual Meeting of Stockholders, where a quorum was achieved with holders of 38,752,780 of 41,194,018 eligible common shares represented in person or by proxy. Stockholders elected eight directors,...
Business Operations and StrategyStock BuybackFinancial Disclosures
Simpson Manufacturing Posts Strong Q1 2026 Results, Reaffirms Outlook
Positive
Apr 27, 2026
On April 27, 2026, Simpson Manufacturing reported first-quarter 2026 results showing net sales up 9.1% year over year to $588.0 million, income from operations up 12.0% to $114.6 million, and diluted EPS rising 15.1% to $2.13, alongside a $50.0 mi...
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.