Simpson Manufacturing Co (SSD) AI Stock Analysis

• Market Cap: $7.27B
• Dividend Yield: 0.65%
• Average Volume (3M): 285.32K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.00
• Revenue Growth: 4.26%
• EPS Growth: 8.52%
• Country: US
• Employees: 5,872
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 2.58
• Shares Outstanding: 41,617,300
• 10 Day Avg. Volume: 269,353
• 30 Day Avg. Volume: 285,317
• PEG Ratio: -2.69
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 44.33
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 12.10
• 1Y Price Target: $201.00
• Price Target Upside: 15.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $195.00 ▲(11.58% Upside)

Simpson Manufacturing Co's overall stock score reflects its strong financial performance and strategic growth initiatives, particularly in Europe. However, technical indicators suggest mixed momentum, and valuation metrics indicate moderate pricing. The earnings call provided a balanced view with both growth and cost challenges, contributing to a stable outlook.

Positive Factors

Revenue Growth

The consistent revenue growth, driven by strategic acquisitions and price increases, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operating Margin Stability

Stable operating margins reflect effective cost management and pricing strategies, ensuring profitability and competitive positioning in the construction industry.

Balance Sheet Health

A low Debt-to-Equity Ratio indicates reduced financial leverage, enhancing financial stability and flexibility for future investments and growth opportunities.

Negative Factors

Flat Volume and Market Challenges

Flat volumes amidst market challenges suggest potential difficulties in scaling operations, which could hinder growth and market share expansion in the long term.

Gross Margin Pressures

Stagnant gross margins amidst rising costs may pressure profitability, requiring strategic adjustments to maintain competitive pricing and margin sustainability.

Tariff and Pricing Challenges

Tariff-induced cost increases could impact pricing strategies and market competitiveness, potentially affecting sales volumes and profit margins over time.

Simpson Manufacturing Co Business Overview & Revenue Model

Company Description

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells wood and concrete construction products. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.

How the Company Makes Money

Simpson Manufacturing generates revenue through the sale of its manufactured products, which include structural connectors, fastening systems, and related tools and equipment. The company's primary revenue streams come from the wood construction and concrete construction sectors, where they provide essential products for framing, anchoring, and reinforcing structures. Additionally, Simpson earns income from its international operations by exporting products to global markets. Partnerships with distributors, contractors, and construction firms enhance their market reach and drive sales. The company's focus on innovation leads to the development of new products that meet evolving industry standards, further contributing to its revenue growth.

Simpson Manufacturing Co Financial Statement Overview

Summary

Simpson Manufacturing Co presents a strong financial profile with consistent revenue growth and robust profitability margins. The balance sheet is well-capitalized with low leverage, providing financial stability. While cash flow metrics indicate some volatility, the company maintains positive free cash flow and liquidity.

Income Statement

Simpson Manufacturing Co has demonstrated strong performance in its income statement metrics. The company shows stable revenue growth with a Revenue Growth Rate of approximately 1.9% in the TTM compared to the previous year. The Gross Profit Margin stands at 46.1% for the TTM, indicating effective cost management. Net Profit Margin is at 14.5%, reflecting robust profitability. EBIT and EBITDA margins are healthy at 19.6% and 25.2% respectively. These margins highlight efficient operational management and profitability in the construction industry.

Balance Sheet

The balance sheet of Simpson Manufacturing Co reflects a solid financial position with a strong equity base. The Debt-to-Equity Ratio has improved significantly to 0.03 in the TTM from 0.27 the previous year, indicating lower financial leverage and reduced reliance on debt. The Return on Equity (ROE) for the TTM is 13.7%, showcasing efficient use of equity in generating profits. The Equity Ratio is high at 81.4%, demonstrating a strong equity cushion and lower risk of insolvency. Overall, the company maintains financial stability with a well-capitalized balance sheet.

Cash Flow

Simpson Manufacturing Co exhibits a stable cash flow position. The Free Cash Flow Growth Rate shows a decrease of around 25% from the previous annual figure, but the company maintains positive free cash flow, which is a good sign of liquidity. The Operating Cash Flow to Net Income Ratio stands at 0.66, indicating that the company generates sufficient operating cash to cover its net income. The Free Cash Flow to Net Income Ratio is 0.36, reflecting adequate cash flow generation relative to profitability. These metrics suggest a healthy cash flow position, despite some fluctuations in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.31B	2.23B	2.21B	2.12B	1.57B	1.27B
Gross Profit	1.06B	1.03B	1.04B	941.17M	754.71M	575.52M
EBITDA	589.24M	520.74M	558.69M	532.95M	411.44M	297.60M
Net Income	344.33M	322.22M	353.99M	334.00M	266.45M	187.00M
Balance Sheet
Total Assets	3.05B	2.74B	2.70B	2.50B	1.48B	1.23B
Cash, Cash Equivalents and Short-Term Investments	297.30M	239.37M	429.82M	300.74M	301.15M	274.64M
Total Debt	76.60M	480.66M	551.57M	635.47M	45.86M	46.34M
Total Liabilities	573.98M	923.03M	1.02B	1.09B	300.13M	251.63M
Stockholders Equity	2.47B	1.81B	1.68B	1.41B	1.18B	980.94M
Cash Flow
Free Cash Flow	60.29M	157.80M	338.20M	337.46M	101.70M	169.66M
Operating Cash Flow	115.80M	338.16M	427.02M	399.82M	151.29M	207.57M
Investing Cash Flow	-147.71M	-259.26M	-103.25M	-870.24M	-58.80M	-39.85M
Financing Cash Flow	-246.05M	-261.46M	-199.03M	465.53M	-71.62M	-126.78M

Simpson Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 174.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 174.76 is above the 20-day moving average (MA) of 173.36, below the 50-day MA of 180.23, and above the 200-day MA of 166.57, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSD.

Simpson Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSD	―	$7.27B	21.83	17.82%	0.65%	4.26%	8.52%
WMS	―	$10.81B	25.23	27.68%	0.49%	0.24%	-12.68%
AWI	―	$8.25B	27.49	38.03%	0.61%	15.10%	23.35%
AAON	―	$8.21B	70.40	15.52%	0.37%	5.39%	-34.28%
OC	―	$10.43B	33.51	12.26%	2.21%	13.08%	-67.65%
FBIN	―	$5.97B	16.11	16.84%	2.03%	-5.79%	-9.90%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Simpson Manufacturing Co Corporate Events

Simpson Manufacturing’s Earnings Call: Growth Amid Challenges

During the recent earnings call, Simpson Manufacturing presented a balanced sentiment, highlighting both achievements and challenges. The company reported successful revenue growth and strategic initiatives, particularly in Europe and the OEM sectors. However, these positive developments were tempered by declining volumes in key markets, pressure on gross margins due to tariffs, and restructuring costs, resulting in a mixed overall sentiment.

Simpson Manufacturing Reports Strong Q3 2025 Results

Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, is a leading manufacturer of wood and concrete construction products, primarily serving residential and commercial markets in North America and Europe. The company is known for its engineered structural connectors and building solutions.

Simpson Manufacturing Reports Q3 2025 Financial Results

On October 27, 2025, Simpson Manufacturing Co., Inc. announced its financial results for the third quarter of 2025, reporting a 6.2% increase in net sales to $623.5 million and a 12.7% rise in income from operations to $140.7 million compared to the same period in 2024. The company also declared a dividend of $0.29 per share and announced share repurchase plans for 2026 up to $150 million. Despite challenges in the residential housing markets in the U.S. and Europe, the company attributed its growth to strategic pricing actions and foreign exchange impacts. Simpson Manufacturing is undertaking strategic cost-saving initiatives expected to yield $30 million in annual savings, aiming to align operations with market demand and ensure long-term success.

The most recent analyst rating on (SSD) stock is a Buy with a $195.00 price target. To see the full list of analyst forecasts on Simpson Manufacturing Co stock, see the SSD Stock Forecast page.

Simpson Manufacturing’s Earnings Call: Growth Amid Challenges

The recent earnings call of Simpson Manufacturing painted a balanced picture of the company’s current standing. While the company showcased notable revenue growth and strategic advancements, challenges in volume growth and market conditions, particularly in Europe and the residential segment, were also highlighted. Despite these hurdles, Simpson Manufacturing maintained strong margins and continued to invest in growth initiatives, demonstrating resilience in a challenging market environment.

Simpson Manufacturing Reports Strong Q2 2025 Results

Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, is a leading manufacturer of wood and concrete construction products, primarily serving the residential and commercial markets in North America and Europe.