Simpson Manufacturing Co (SSD) AI Stock Analysis

• Market Cap: $6.94B
• Dividend Yield: 0.69%
• Average Volume (3M): 295.27K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.88
• 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: 41,459,274
• 10 Day Avg. Volume: 290,326
• 30 Day Avg. Volume: 295,275
• PEG Ratio: -2.69
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 44.33
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 6.73
• Enterprise Value/Ebitda: 12.14
• 1Y Price Target: $196.33
• Price Target Upside: 18.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 8.12
• Revenue Forecast (FY): $2.32B

• Rating: 74 Outperform
• Price Target: $187.00 ▲(13.13% Upside)

Simpson Manufacturing Co's overall stock score reflects strong financial performance and strategic growth initiatives, particularly in Europe and OEM sectors. However, technical indicators suggest a neutral trend, and valuation metrics indicate moderate pricing. Challenges such as declining volumes and margin pressures are balanced by strategic cost-saving initiatives and shareholder value efforts.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective pricing strategies, supporting long-term business expansion.

European Market Performance

Strong performance in Europe suggests successful market penetration and potential for further growth in international markets.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Gross Margin Pressure

Decreasing gross margins due to higher input costs may impact profitability if not managed effectively.

Rising Debt Levels

Increasing debt levels could strain financial resources, limiting future growth opportunities if not controlled.

Volume Decline in Key Markets

Declining volumes in key markets may signal weakening demand, potentially affecting revenue and market position.

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 Co generates revenue primarily through the sale of its product offerings, which include a diverse range of structural connectors, fasteners, and other building materials. The company’s revenue model is driven by direct sales to builders, contractors, and distributors, as well as through retail partnerships. Key revenue streams include sales of engineered wood products and fastening systems, which are essential for residential and commercial construction projects. Additionally, Simpson benefits from strong brand recognition and relationships with building supply distributors, which facilitate broader market access. Seasonal fluctuations in construction activity can impact earnings, but ongoing investment in product innovation and expansion into new markets contribute positively to revenue stability.

Simpson Manufacturing Co Financial Statement Overview

Summary

Simpson Manufacturing Co demonstrates strong financial performance with stable revenue growth and robust profitability margins. The balance sheet is well-capitalized with low leverage, providing financial stability. However, cash flow metrics show some volatility, though 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	445.81M	480.66M	551.57M	635.47M	45.86M	46.34M
Total Liabilities	1.03B	923.03M	1.02B	1.09B	300.13M	251.63M
Stockholders Equity	2.01B	1.81B	1.68B	1.41B	1.18B	980.94M
Cash Flow
Free Cash Flow	238.91M	157.80M	338.20M	337.46M	101.70M	169.66M
Operating Cash Flow	418.77M	338.16M	427.02M	399.82M	151.29M	207.57M
Investing Cash Flow	-163.67M	-259.26M	-103.25M	-870.24M	-58.80M	-39.85M
Financing Cash Flow	-293.57M	-261.46M	-199.03M	465.53M	-71.62M	-126.78M

Simpson Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 165.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 165.3 is below the 20-day moving average (MA) of 168.08, below the 50-day MA of 169.41, and below the 200-day MA of 166.76, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 21.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSD.

Simpson Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	77 Outperform	$8.16B	27.29	38.03%	0.67%	15.10%	23.35%
SSD	74 Outperform	$6.94B	20.11	17.82%	0.69%	4.26%	8.52%
WMS	74 Outperform	$11.61B	25.40	27.09%	0.47%	2.48%	-6.92%
FBIN	66 Neutral	$6.09B	18.87	13.72%	1.91%	-3.78%	-24.77%
AAON	62 Neutral	$6.13B	62.47	12.08%	0.53%	8.77%	-47.50%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OC	52 Neutral	$9.32B	-19.64	-3.27%	2.43%	3.47%	-148.53%

Simpson Manufacturing Co Corporate Events

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.