Simpson Manufacturing (SSD)
NYSE:SSD
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Simpson Manufacturing Co
(NYSE:SSD)
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Rating:71Outperform
Price Target:
$184.00
â–²(5.03% Upside)
Action:ReiteratedDate:02/28/26
SSD scores well on fundamentals, led by strong profitability and scale with manageable leverage, but is held back by margin compression and inconsistent free-cash-flow conversion. The earnings call supports a steady outlook with buybacks and cost actions, though tariffs and housing-start sensitivity remain key risks. Technically, the longer-term trend is positive but near-term momentum is mixed, and valuation looks only moderate given the low dividend yield.
Positive Factors
Sustained high margins and profitability
Simpson delivers durable profitability with gross margins in the mid‑to‑high 40% range and roughly 20% operating margin in 2025. Persistent high margins reflect manufacturing scale, specification‑driven product demand and pricing power that support long‑term cash generation and ROE.
Negative Factors
Tariff-driven cost pressure
Tariffs represent a structural headwind: roughly $100M of annualized tariff costs have materially offset price increases and compressed gross margin. Persistent or recurrent trade/tariff measures could continue to blunt pricing power and pressure margins over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained high margins and profitability
Simpson delivers durable profitability with gross margins in the mid‑to‑high 40% range and roughly 20% operating margin in 2025. Persistent high margins reflect manufacturing scale, specification‑driven product demand and pricing power that support long‑term cash generation and ROE.
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Simpson Manufacturing Co (SSD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.25B
Dividend Yield0.69%
Average Volume (3M)242.83K
Price to Earnings (P/E)29.7
Beta (1Y)0.79
Revenue Growth4.26%
EPS Growth8.52%
CountryUS
Employees5,872
SectorBasic Materials
Sector Strength58
IndustryConstruction
Share Statistics
EPS (TTM)1.35
Shares Outstanding41,402,035
10 Day Avg. Volume224,036
30 Day Avg. Volume242,828
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 Cap1.02
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit6.94
Enterprise Value/Ebitda13.45
Forecast
1Y Price Target
$207.33Price Target Upside18.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)8.72
Revenue Forecast (FY)$2.40B
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)
Simpson Manufacturing Co Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The call presented a balanced view: management highlighted solid top‑line growth (4.5% YoY), EPS leverage, strong cash generation, a company safety milestone and progress in higher‑value businesses (OEM, component manufacturing, digital). At the same time, material headwinds remain—tariff costs roughly offset price increases, volumes were down (~1%) with regional weakness in high‑content markets, Q4 margins and adjusted EBITDA showed some pressure, and operating expenses rose due to one‑time items and variable compensation. Guidance for 2026 is cautious (operating margin 19.5%–20.5%) and assumes flattish housing starts, leaving outcomes sensitive to tariffs, steel costs, and regional demand.Positive Updates
Revenue Growth and Sales Composition
Full year 2025 net sales of $2.3 billion, up 4.5% year‑over‑year. Management attributed ~3% of growth to pricing, ~1% to acquisitions, ~1% to foreign exchange, and an approximate 1% volume decline due to weaker housing starts.
Negative Updates
Tariff‑Driven Cost Pressure Offsetting Pricing
Management cited approximately $100 million of annualized tariff cost that largely offsets about $100 million of annualized price increases. Roughly $60 million of the pricing benefit was realized in 2025 with the remaining ~$40 million expected to flow in 2026, creating ongoing gross margin pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Sales Composition
Full year 2025 net sales of $2.3 billion, up 4.5% year‑over‑year. Management attributed ~3% of growth to pricing, ~1% to acquisitions, ~1% to foreign exchange, and an approximate 1% volume decline due to weaker housing starts.
Read all positive updates
Company Guidance
For FY2026 Simpson guided consolidated operating margin of 19.5%–20.5% (targeting ~20%) with management assuming flattish U.S. housing starts (aiming to grow above the market) and slight growth in Europe; they expect a slightly lower gross margin driven by tariffs and higher depreciation, calling out roughly $100M of annualized tariff cost offset in part by ~$100M of annualized pricing (about $60M realized in 2025, with the remaining ~$40M flowing in 2026). Key assumptions and metrics include €/$ (FX) headwinds (about $5M impact to OpEx), $3–5M of European footprint‑optimization costs, a $10–12M benefit from sale of vacant land, an effective tax rate of roughly 20–25%, capital expenditures of $75–85M, absolute operating expenses expected down about $10–15M year‑over‑year (as part of ~$30M annualized cost‑savings), a new $150M share‑repurchase authorization for 2026, and a commitment to return at least 35% of free cash flow to shareholders.Simpson Manufacturing Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.33B | 2.23B | 2.21B | 2.12B | 1.57B |
| Gross Profit | 1.07B | 1.03B | 1.04B | 941.17M | 754.71M |
| EBITDA | 550.95M | 520.74M | 558.69M | 532.95M | 411.44M |
| Net Income | 345.08M | 322.22M | 353.99M | 334.00M | 266.45M |
Balance Sheet | |||||
| Total Assets | 3.07B | 2.74B | 2.70B | 2.50B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 384.14M | 239.37M | 429.82M | 300.74M | 301.15M |
| Total Debt | 487.58M | 480.66M | 551.57M | 635.47M | 45.86M |
| Total Liabilities | 1.04B | 923.03M | 1.02B | 1.09B | 300.13M |
| Stockholders Equity | 2.03B | 1.81B | 1.68B | 1.41B | 1.18B |
Cash Flow | |||||
| Free Cash Flow | 295.63M | 157.80M | 338.20M | 337.46M | 101.70M |
| Operating Cash Flow | 456.67M | 338.16M | 427.02M | 399.82M | 151.29M |
| Investing Cash Flow | -136.35M | -259.26M | -103.25M | -870.24M | -58.80M |
| Financing Cash Flow | -183.98M | -261.46M | -199.03M | 465.53M | -71.62M |
Simpson Manufacturing Co Technical Analysis
Neutral
175.18
Price Trends
184.26
Negative
176.99
Negative
175.93
Negative
Market Momentum
-4.23
Negative
49.60
Neutral
49.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSD, the sentiment is Neutral. The current price of 175.18 is above the 20-day moving average (MA) of 172.28, below the 50-day MA of 184.26, and below the 200-day MA of 175.93, indicating a neutral trend. The MACD of -4.23 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $11.48B | 30.06 | 25.82% | 0.47% | 2.48% | -6.92% | |
72 Outperform | $7.40B | 31.80 | 36.09% | 0.66% | 15.10% | 23.35% | |
71 Outperform | $7.25B | 29.69 | 17.58% | 0.69% | 4.26% | 8.52% | |
64 Neutral | $9.08B | -17.89 | -11.39% | 2.43% | 3.47% | -148.53% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $7.12B | 57.78 | 12.63% | 0.53% | 8.77% | -47.50% | |
52 Neutral | $4.83B | 20.84 | 12.70% | 1.91% | -3.78% | -24.77% |
* Basic Materials Sector Average
SSD
Simpson Manufacturing Co
175.18
25.15
16.77%
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OC
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112.91
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WMS
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147.42
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36.28%
Simpson Manufacturing Co Corporate Events
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.