Simpson Manufacturing Co (SSD) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: 0.74%
• Average Volume (3M): 254.75K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.12
• Revenue Growth: 1.38%
• EPS Growth: -3.80%
• Country: US
• Employees: 5,872
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Construction
• EPS (TTM): 1.85
• Shares Outstanding: 41,827,892
• 10 Day Avg. Volume: 260,732
• 30 Day Avg. Volume: 254,748
• PEG Ratio: 0.43
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.44
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $182.00
• Price Target Upside: 19.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $175.00 ▲(14.65%Upside)

Simpson Manufacturing Co's stock is rated moderately strong, driven primarily by robust financial performance and effective cash flow management. Technical analysis and valuation suggest a stable but cautious outlook. Earnings call insights and corporate events further support a positive long-term perspective despite some current 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 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 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 Financial Statement Overview

Summary

Simpson Manufacturing Co exhibits strong financial performance with consistent revenue growth and robust profitability. The income statement shows healthy margins and steady expansion. The balance sheet is stable with low leverage, and cash flow management is efficient, indicating a strong financial position.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.24B	2.23B	2.21B	2.12B	1.57B	1.27B
	Gross Profit
1.03B	1.03B	1.04B	941.29M	755.03M	576.38M
	EBIT
436.21M	429.98M	475.15M	459.07M	367.79M	252.36M
	EBITDA
527.77M	518.63M	554.21M	532.95M	411.44M	297.60M
	Net Income Common Stockholders
324.68M	322.22M	353.99M	334.00M	266.45M	187.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
150.29M	239.37M	429.82M	300.74M	301.15M	274.64M
	Total Assets
2.82B	2.74B	2.70B	2.50B	1.48B	1.23B
	Total Debt
462.69M	480.66M	551.57M	635.47M	45.86M	46.34M
	Net Debt
312.40M	241.29M	121.75M	334.72M	-255.29M	-228.30M
	Total Liabilities
952.44M	923.03M	1.02B	1.09B	300.13M	251.63M
	Stockholders Equity
1.87B	1.81B	1.68B	1.41B	1.18B	980.94M
Cash Flow		Free Cash Flow
146.68M	157.80M	338.20M	337.46M	101.70M	169.66M
	Operating Cash Flow
337.79M	338.16M	427.02M	399.82M	151.29M	207.57M
	Investing Cash Flow
-269.99M	-259.26M	-103.25M	-870.24M	-58.80M	-39.85M
	Financing Cash Flow
-279.50M	-261.46M	-199.03M	465.53M	-71.62M	-126.78M

Simpson Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 152.64 is below the 20-day moving average (MA) of 156.29, below the 50-day MA of 155.05, and below the 200-day MA of 169.15, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 12.45 is Positive, 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
AZEK	78 Outperform	$7.39B	49.78	10.62%	―	5.93%	3.50%
LPX	74 Outperform	$5.98B	15.11	24.41%	1.30%	8.09%	55.08%
SSD	74 Outperform	$6.35B	19.77	18.10%	0.74%	1.38%	-3.80%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
TREX	69 Neutral	$5.64B	28.77	23.07%	―	-9.10%	-21.50%
FBIN	64 Neutral	$5.93B	14.43	18.62%	2.02%	-3.48%	4.55%
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%

Simpson Manufacturing Co Corporate Events

Simpson Manufacturing Co Approves Key Proposals at Annual Meeting

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.

Simpson Manufacturing Co Reports Q1 2025 Financial Results

On April 28, 2025, Simpson Manufacturing Co., Inc. announced its financial results for the first quarter of 2025, highlighting a 1.6% year-over-year increase in net sales to $538.9 million and an operating income margin of 19.0%. The company also repurchased $25.0 million in common stock and reaffirmed its 2025 guidance. Despite a challenging macroeconomic environment, the company reported a $9.0 million benefit from its 2024 acquisitions and implemented price increases to offset rising costs, including those related to new tariffs.