Simpson Manufacturing Co Inc (SSD)
NYSE:SSD
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Simpson Manufacturing Co
(NYSE:SSD)
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Rating:69Neutral
Price Target:
$199.00
â–²(12.89% Upside)
Action:DowngradedDate:04/28/26
The score is driven primarily by strong underlying financial performance (scale growth and ~20% operating profitability) and a constructive but not decisive earnings outlook (pricing/cost actions and buybacks offset by tariff-driven margin pressure and softer housing starts). The rating is held back by a relatively high P/E with a low dividend yield and only moderate technical momentum.
Positive Factors
Multi‑year revenue growth & scale
Sustained top‑line expansion nearly doubled revenue over five years, demonstrating durable market penetration in construction channels. Scale supports fixed‑cost leverage, broad distribution, and product availability that help preserve margins and competitive position through cyclical demand swings.
Negative Factors
Tariff and input‑cost headwinds
Persistent tariffs and commodity/labor inflation are structural cost risks that erode gross margins despite pricing attempts. When pricing pass‑through is limited by competitive or specification constraints, sustained input inflation can compress profitability and reduce free cash flow over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi‑year revenue growth & scale
Sustained top‑line expansion nearly doubled revenue over five years, demonstrating durable market penetration in construction channels. Scale supports fixed‑cost leverage, broad distribution, and product availability that help preserve margins and competitive position through cyclical demand swings.
Read all positive factors
Simpson Manufacturing Co (SSD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.91B
Dividend Yield0.69%
Average Volume (3M)245.55K
Price to Earnings (P/E)20.1
Beta (1Y)0.84
Revenue Growth4.51%
EPS Growth8.60%
CountryUS
Employees5,872
SectorBasic Materials
Sector Strength58
IndustryConstruction
Share Statistics
EPS (TTM)2.13
Shares Outstanding41,194,020
10 Day Avg. Volume228,407
30 Day Avg. Volume245,550
Financial Highlights & Ratios
PEG Ratio2.37
Price to Book (P/B)3.32
Price to Sales (P/S)2.89
P/FCF Ratio22.79
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit7.10
Enterprise Value/Ebitda13.58
Forecast
1Y Price Target
$214.75Price Target Upside21.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)8.87
Revenue Forecast (FY)$2.39B
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, f...
How the Company Makes Money
Simpson Manufacturing makes money primarily by selling building and construction products—most notably engineered structural connectors and fasteners—into the construction supply chain. Revenue is generated from product shipments to distributors, ...
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 Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call highlights solid top-line growth, strong adjusted EBITDA and EPS improvement driven by pricing, cost discipline and targeted growth in higher-margin segments (component manufacturing and OEM). The company also strengthened liquidity, reduced inventory and returned capital to shareholders. Offsetting these positives are notable gross margin pressure (tariffs, higher input and labor costs and Gallatin start-up costs), Europe volume weakness and a softer housing-start outlook for 2026. Management's tone is constructive but cautious, emphasizing execution, pricing realization (~$130M annualized) and cost actions to mitigate headwinds while acknowledging near-term market uncertainty.Positive Updates
Consolidated Revenue Growth
Net sales of $588.0M, up 9.1% year-over-year; North America net sales $461.9M, up 9.8%; Europe net sales $121.0M, up 6.3% (FX-driven). 2025 pricing contributed ~6% and foreign exchange ~3%, partially offset by ~1% volume decline.
Negative Updates
Gross Margin Compression
Consolidated gross margin declined 130 basis points to 45.2% YoY, driven by higher material, factory & tooling and labor costs, tariff impacts and product mix, including ~100 bps headwind from Gallatin facility start-up costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net sales of $588.0M, up 9.1% year-over-year; North America net sales $461.9M, up 9.8%; Europe net sales $121.0M, up 6.3% (FX-driven). 2025 pricing contributed ~6% and foreign exchange ~3%, partially offset by ~1% volume decline.
Read all positive updates
Company Guidance
Simpson’s full‑year 2026 guidance calls for a consolidated operating margin of 19.5%–20.5% (aligned with its ambition to hold operating income at or above 20%), assumes U.S. housing starts will be down in the low single digits and Europe will be flat-to-modest growth, and reflects a higher realization of 2025 price actions now expected to contribute roughly $130 million of annualized net sales (about $70 million incremental in 2026); management also expects $3M–$5M of footprint‑optimization costs in Europe, a $10M–$12M benefit from a vacant‑land sale in H2, an effective tax rate of 25%–26%, capital expenditures of $75M–$85M, ongoing tariff‑ and depreciation‑related gross margin pressure, and remains committed to returning at least 35% of free cash flow to shareholders (supported by a Board‑authorized $150M repurchase program for 2026).Simpson Manufacturing Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.38B | 2.33B | 2.23B | 2.21B | 2.12B | 1.57B |
| Gross Profit | 1.08B | 1.07B | 1.03B | 1.04B | 941.17M | 754.71M |
| EBITDA | 567.08M | 550.95M | 520.74M | 558.69M | 532.95M | 411.44M |
| Net Income | 355.42M | 345.08M | 322.22M | 353.99M | 334.00M | 266.45M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 3.07B | 2.74B | 2.70B | 2.50B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 341.00M | 384.14M | 239.37M | 429.82M | 300.74M | 301.15M |
| Total Debt | 92.95M | 487.58M | 480.66M | 551.57M | 635.47M | 45.86M |
| Total Liabilities | 595.71M | 1.04B | 923.03M | 1.02B | 1.09B | 300.13M |
| Stockholders Equity | 2.45B | 2.03B | 1.81B | 1.68B | 1.41B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 338.23M | 295.63M | 157.80M | 338.20M | 337.46M | 101.70M |
| Operating Cash Flow | 449.11M | 456.67M | 338.16M | 427.02M | 399.82M | 151.29M |
| Investing Cash Flow | -86.25M | -136.35M | -259.26M | -103.25M | -870.24M | -58.80M |
| Financing Cash Flow | -141.15M | -183.98M | -261.46M | -199.03M | 465.53M | -71.62M |
Simpson Manufacturing Co Technical Analysis
Positive
176.27
Price Trends
183.55
Negative
178.01
Negative
176.59
Negative
Market Momentum
-1.44
Negative
50.97
Neutral
53.31
Neutral
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 176.27 is above the 20-day moving average (MA) of 171.94, below the 50-day MA of 183.55, and below the 200-day MA of 176.59, indicating a neutral trend. The MACD of -1.44 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 53.31 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.47B | 30.06 | 25.82% | 0.47% | 1.60% | 0.43% | |
74 Outperform | $7.19B | 26.40 | 34.81% | 0.66% | 9.71% | 13.17% | |
69 Neutral | $7.91B | 20.05 | 16.86% | 0.69% | 4.51% | 8.60% | |
69 Neutral | $9.87B | -17.89 | -11.39% | 2.43% | -7.95% | -187.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $7.66B | 57.78 | 12.63% | 0.53% | 20.11% | -36.22% | |
52 Neutral | $4.78B | 20.84 | 12.70% | 1.91% | -3.17% | -34.48% |
* Basic Materials Sector Average
SSD
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Simpson Manufacturing Co Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Simpson Manufacturing Posts Strong Q1 2026 Results, Reaffirms Outlook
Positive
Apr 27, 2026
On April 27, 2026, Simpson Manufacturing reported first-quarter 2026 results showing net sales up 9.1% year over year to $588.0 million, income from operations up 12.0% to $114.6 million, and diluted EPS rising 15.1% to $2.13, alongside a $50.0 mi...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Simpson Manufacturing Posts Solid 2025 Results, Raises Shareholder Returns
Positive
Feb 9, 2026
On February 9, 2026, Simpson Manufacturing Co., Inc. reported that fourth-quarter 2025 net sales rose 4.2% year over year to $539.3 million, with net income per diluted share of $1.35 and a declared quarterly dividend of $0.29 per share. For full-...
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.