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Simpson Manufacturing Co
(NYSE:SSD)
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Rating:76Outperform
Price Target:
$196.00
▲(5.99% Upside)
Action:Reiterated
Date:07/28/26
Overall score reflects strong financial quality (high margins and a low-leverage balance sheet) as the primary positive, supported by a steady uptrend in price vs key moving averages. The score is tempered by slowing growth and weakening/volatile free cash flow, plus earnings-call guidance indicating H2 revenue/profitability moderation and cost headwinds (steel, tariffs), while valuation is only moderately attractive and dividend yield is low.
Positive Factors
Strong profitability
High gross, operating, and net margins demonstrate meaningful earnings power in the company’s construction-products portfolio. Sustained profitability provides resources for product development, capacity investment, resilience through market cycles, and continued shareholder returns.
Negative Factors
Cooling revenue and volume growth
The sharp deceleration from earlier revenue growth and recurring volume declines indicate that demand is currently providing limited organic momentum. Continued softness could constrain operating leverage, reduce utilization benefits, and make future earnings growth more dependent on pricing or mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
High gross, operating, and net margins demonstrate meaningful earnings power in the company’s construction-products portfolio. Sustained profitability provides resources for product development, capacity investment, resilience through market cycles, and continued 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
$7.11B
Dividend Yield0.68%
Average Volume (3M)274.99K
Price to Earnings (P/E)18.9
Beta (1Y)0.76
Revenue Growth6.48%
EPS Growth16.55%
CountryUS
Employees5,545
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)9.19
Shares Outstanding40,984,680
10 Day Avg. Volume281,468
30 Day Avg. Volume274,993
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 Cap1.21
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit7.75
Enterprise Value/Ebitda14.26
Forecast
1Y Price Target
$216.50Price Target Upside17.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.22
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:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call reports strong Q2 financial performance driven largely by prior pricing actions, margin expansion, robust EBITDA and cash generation, record regional margin progress (Europe), and continued success in OEM and component manufacturing. Offsetting these positives are modest volume declines, ongoing housing affordability and market softness, rising steel costs and supply constraints, start-up and footprint transition costs, and an expectation that revenue and profitability growth will moderate in the back half as prior pricing lapses. Management is emphasizing disciplined pricing, cost control, inventory optimization and continued capital returns.Positive Updates
Revenue Growth
Consolidated net sales of $671.1M, up 6.3% year-over-year; North America net sales $522.3M (+6%) and Europe net sales $143.5M (+7.6% / +4.9% local currency).
Negative Updates
Volume Pressures
Global volumes down roughly 1% in Q2 and down 1.6% over the last 12 months; company volumes trailing U.S. housing starts by ~100 basis points; residential and commercial volumes modestly down.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Consolidated net sales of $671.1M, up 6.3% year-over-year; North America net sales $522.3M (+6%) and Europe net sales $143.5M (+7.6% / +4.9% local currency).
Read all positive updates
Company Guidance
Simpson narrowed full‑year guidance for consolidated operating margin to 19.7%–20.5% (consistent with its ambition to be at/above 20%), and reiterated expectations that 2026 U.S. housing starts will be down low‑single digits while Europe will be flat to modest growth; management expects full‑year gross margin to be slightly lower year‑over‑year due to rising raw‑material/steel costs, tariffs and higher depreciation and cautioned revenues and profitability will moderate in H2 as the company laps prior pricing. Key guidance assumptions include an effective tax rate of 25%–26%, €? $2 million–$4 million of footprint optimization costs in Europe, an expected $10 million–$12 million gain on sale of vacant land in H2, and capital expenditures of $80 million–$90 million; the company remains committed to returning at least 35% of free cash flow to shareholders, has increased its share repurchase authorization to $200 million (with $76.8 million available as of July 23), and has repurchased $98.7 million of stock year‑to‑date (plus $24.5 million subsequent to quarter end).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 | 2.42B | 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 | 602.87M | 550.95M | 520.74M | 558.69M | 532.95M | 411.44M |
| Net Income | 378.92M | 345.08M | 322.22M | 353.99M | 334.00M | 266.45M |
Balance Sheet | ||||||
| Total Assets | 3.14B | 3.07B | 2.74B | 2.70B | 2.50B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 450.53M | 384.14M | 239.37M | 429.82M | 300.74M | 301.15M |
| Total Debt | 423.76M | 487.58M | 480.66M | 551.57M | 635.47M | 45.86M |
| Total Liabilities | 1.03B | 1.04B | 923.03M | 1.02B | 1.09B | 300.13M |
| Stockholders Equity | 2.12B | 2.03B | 1.81B | 1.68B | 1.41B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 468.37M | 297.62M | 157.80M | 338.20M | 337.46M | 101.70M |
| Operating Cash Flow | 574.36M | 458.66M | 338.16M | 427.02M | 399.82M | 151.29M |
| Investing Cash Flow | -71.99M | -136.23M | -259.26M | -103.25M | -870.24M | -58.80M |
| Financing Cash Flow | -253.51M | -186.08M | -261.46M | -199.03M | 465.53M | -71.62M |
Simpson Manufacturing Co Technical Analysis
Negative
184.93
Price Trends
183.38
Negative
187.14
Negative
183.92
Negative
Market Momentum
-2.70
Negative
44.02
Neutral
35.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSD, the sentiment is Negative. The current price of 184.93 is above the 20-day moving average (MA) of 173.94, above the 50-day MA of 183.38, and above the 200-day MA of 183.92, indicating a bearish trend. The MACD of -2.70 indicates Negative momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.11B | 18.89 | 18.44% | 0.68% | 6.48% | 16.55% | |
70 Outperform | $4.44B | 25.93 | 17.38% | ― | 6.97% | -2.53% | |
66 Neutral | $14.51B | 98.97 | 2.27% | 2.70% | 42.93% | -67.45% | |
65 Neutral | $13.08B | 18.80 | 41.06% | 1.38% | 1.90% | -2.79% | |
62 Neutral | $870.70M | 19.12 | 6.19% | 1.68% | 1.26% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $6.05B | 61.14 | 2.46% | ― | -9.38% | -86.05% |
* Basic Materials Sector Average
SSD
Simpson Manufacturing Co
173.56
5.03
2.98%
BLDR
Builders Firstsource
56.25
-70.86
-55.75%
CSL
Carlisle Companies
329.34
5.17
1.59%
NX
Quanex
19.00
4.73
33.15%
TREX
Trex Company
43.56
-8.74
-16.71%
JHX
James Hardie Industries PLC
24.99
4.90
24.39%
Simpson Manufacturing Co Corporate Events
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.