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Simpson Manufacturing (SSD)
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Simpson Manufacturing Co (SSD) AI Stock Analysis

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SSD

Simpson Manufacturing Co

(NYSE:SSD)

Rating:71Outperform
Price Target:
$203.00
▲(13.30%Upside)
Simpson Manufacturing Co's overall stock score is driven by strong financial performance and strategic advancements. The stock's technical indicators suggest caution due to overbought signals. Valuation metrics indicate a moderately high price, but recent corporate events and strong earnings call performance support a positive outlook, albeit with some volume growth challenges.
Positive Factors
Business Model
SSD's long-term prospects remain strong, behind a high-quality business model, share gains, and balance sheet.
Investments
SSD leaned into investments in 2024, positive for longer-term share gain opportunities.
Negative Factors
Financial Performance
Q3 operating margin was 21.3%, below the Street's 22.6% expectation.

Simpson Manufacturing Co (SSD) vs. SPDR S&P 500 ETF (SPY)

Simpson Manufacturing Co Business Overview & Revenue Model

Company DescriptionSimpson 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 MoneySimpson Manufacturing Co primarily generates revenue through the sale of its construction-related products, which are distributed across a wide network of retail and wholesale channels. The company's key revenue streams include the sale of structural connectors and anchors designed for wood and concrete applications, which are critical components in building stability and safety. Additionally, Simpson Manufacturing leverages strategic partnerships with major retailers and distributors to extend its market reach and boost sales. The company also invests in research and development to innovate and expand its product lines, ensuring it meets evolving industry standards and customer needs. This focus on quality and innovation helps maintain its competitive edge and drives consistent revenue growth.

Simpson Manufacturing Co Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: 7.93%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with notable revenue growth and strategic advancements offset by challenges in volume growth and market conditions, particularly in Europe and the residential segment. Despite these challenges, the company maintained strong margins and continued to invest in growth initiatives.
Q2-2025 Updates
Positive Updates
Revenue Growth Despite Challenging Market
Simpson Manufacturing reported net sales of $631.1 million for the second quarter of 2025, reflecting a 5.7% increase year-over-year, despite challenges in the residential housing market in both the U.S. and Europe.
North America Sales Performance
North America net sales increased by 6.4% year-over-year to $492.7 million, with notable contributions from 2024 acquisitions and a partial month contribution from price increases.
Strong Performance in Europe
European net sales grew by 2.7% to $133.4 million, driven by positive foreign currency translation and strong performance in new application launches and customer wins.
OEM and Commercial Business Growth
The OEM business experienced double-digit volume growth, while the commercial business saw mid-single-digit volume improvements, driven by adhesive and cold-formed steel product lines.
Digital Solutions and Customer Loyalty
Simpson Manufacturing expanded its customer base and launched key enhancements to its digital solutions portfolio, strengthening partnerships and delivering greater value.
Negative Updates
Flat Volumes in North America
While net sales increased, North American volumes remained relatively flat year-over-year, indicating challenges in driving volume growth.
European Volume Decline
Despite overall sales growth in Europe, volumes were down year-over-year, indicating market challenges despite outperforming local markets.
Gross Margin Impacted by Tariffs
Although gross margin remained consistent with the prior year at 46.7%, increased input costs and newly imposed tariffs had a modest negative impact.
Challenges in Residential Business
The residential business saw slight volume declines due to continued challenging market conditions, impacting overall growth.
Company Guidance
During the Simpson Manufacturing Co. Second Quarter 2025 Earnings Conference Call, the company reported net sales of $631.1 million, reflecting a 5.7% year-over-year increase. North American sales increased by 6.4% to $492.7 million, supported by a $9 million contribution from 2024 acquisitions and partial effects of price increases implemented in June. European sales rose by 2.7% to $133.4 million, although local currency sales decreased by $2.8 million. The consolidated gross margin remained stable at 46.7%, while the operating margin held at 22.2%. Adjusted EBITDA grew by 4.8% to $159.9 million. The company reaffirmed its full-year guidance, expecting an operating margin between 18.5% and 20.5%, with U.S. housing starts anticipated to decline in the low single digits compared to 2024. Simpson Manufacturing emphasized its focus on maintaining industry-leading margins and driving EPS growth ahead of net sales growth.

Simpson Manufacturing Co Financial Statement Overview

Summary
Simpson Manufacturing Co's financial statements demonstrate strong performance with consistent revenue growth and high profitability margins. The company maintains a robust balance sheet with low leverage and efficient cash flow management, indicating a stable financial position poised for growth.
Income Statement
85
Very Positive
Simpson Manufacturing Co has demonstrated strong income statement performance with consistent revenue growth and robust profitability margins. The TTM revenue growth rate is approximately 1.8%, indicating steady expansion. Gross and net profit margins remain healthy at 46.1% and 14.5% respectively. EBIT and EBITDA margins are also solid at 19.5% and 23.5%, reflecting operational efficiency. Overall, the company exhibits strong revenue generation and profitability.
Balance Sheet
78
Positive
The balance sheet of Simpson Manufacturing Co is stable, with a commendable equity ratio of 80.3%, indicating a strong equity base relative to total assets. The debt-to-equity ratio is low at 0.04, suggesting minimal leverage and financial risk. Return on equity is solid at 14.3%, demonstrating good profitability relative to shareholder investments. These metrics highlight a financially stable position with low leverage and efficient capital utilization.
Cash Flow
80
Positive
Cash flow analysis reveals strong cash generation capabilities, with a free cash flow growth rate of 19.9% in the TTM period. The operating cash flow to net income ratio stands at 1.02, indicating efficient cash conversion from profits. The free cash flow to net income ratio of 0.58 shows a healthy level of free cash flow generation relative to earnings. This indicates robust cash flow management and the ability to sustain operations and growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.23B2.21B2.12B1.57B1.27B
Gross Profit1.03B1.04B941.17M754.71M575.52M
EBITDA568.38M558.69M532.95M411.44M297.60M
Net Income322.22M353.99M334.00M266.45M187.00M
Balance Sheet
Total Assets2.74B2.70B2.50B1.48B1.23B
Cash, Cash Equivalents and Short-Term Investments239.37M429.82M300.74M301.15M274.64M
Total Debt480.66M551.57M635.47M45.86M46.34M
Total Liabilities923.03M1.02B1.09B300.13M251.63M
Stockholders Equity1.81B1.68B1.41B1.18B980.94M
Cash Flow
Free Cash Flow157.80M338.20M337.46M101.70M169.66M
Operating Cash Flow338.16M427.02M399.82M151.29M207.57M
Investing Cash Flow-259.26M-103.25M-870.24M-58.80M-39.85M
Financing Cash Flow-261.46M-199.03M465.53M-71.62M-126.78M

Simpson Manufacturing Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price179.17
Price Trends
50DMA
160.66
Positive
100DMA
157.65
Positive
200DMA
165.83
Positive
Market Momentum
MACD
5.13
Negative
RSI
67.63
Neutral
STOCH
81.32
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 179.17 is above the 20-day moving average (MA) of 166.46, above the 50-day MA of 160.66, and above the 200-day MA of 165.83, indicating a bullish trend. The MACD of 5.13 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.82B52.6710.62%5.93%3.50%
73
Outperform
$6.30B15.9024.41%1.19%8.09%55.08%
72
Outperform
$7.72B25.2516.54%4.93%
71
Outperform
$7.49B22.8317.88%0.63%2.95%0.76%
70
Outperform
$6.56B15.9716.84%1.76%-5.79%-9.90%
69
Neutral
$6.80B34.6923.07%-9.10%-21.50%
44
Neutral
AU$1.44B-5.94-41.97%4.24%-2.74%-41.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSD
Simpson Manufacturing Co
179.17
6.13
3.54%
BECN
Beacon Roofing Supply
124.17
43.38
53.69%
FBIN
Fortune Brands Innovations
55.83
-16.91
-23.25%
LPX
Louisiana-Pacific
90.48
-0.34
-0.37%
TREX
Trex Company
63.42
-12.03
-15.94%
AZEK
AZEK Company
54.35
13.33
32.50%

Simpson Manufacturing Co Corporate Events

Stock BuybackFinancial Disclosures
Simpson Manufacturing Co Reports Q2 2025 Financial Results
Positive
Jul 28, 2025

On July 28, 2025, Simpson Manufacturing Co., Inc. announced its financial results for the second quarter of 2025, reporting a 5.7% increase in net sales year-over-year to $631.1 million and a 6.1% rise in income from operations to $140.2 million. The company also reported a 6.9% increase in net income per diluted share to $2.47 and repurchased $35.0 million of common stock during the quarter. Despite challenges in the housing market, the company achieved an operating income margin of 22.2% and experienced sales growth in North America and Europe, supported by acquisitions and favorable currency translation.

The most recent analyst rating on (SSD) stock is a Hold 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.

Executive/Board ChangesShareholder Meetings
Simpson Manufacturing Co Approves Key Proposals at Annual Meeting
Positive
May 12, 2025

On May 6, 2025, Simpson Manufacturing Co. held its Annual Meeting of Stockholders where all four proposals presented were approved. These included the election of eight directors, approval of executive compensation, the amended Employee Stock Purchase Plan, and the ratification of Grant Thornton LLP as the independent accounting firm for 2025. This approval signifies strong shareholder support for the company’s governance and strategic decisions, potentially reinforcing its market position and operational stability.

The most recent analyst rating on (SSD) stock is a Hold 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.

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.Date of analysis: Jul 31, 2025