Simpson Manufacturing Co (SSD) AI Stock Analysis

• Market Cap: $8.43B
• Dividend Yield: 0.69%
• Average Volume (3M): 255.21K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.83
• Revenue Growth: 4.26%
• EPS Growth: 8.52%
• Country: US
• Employees: 5,872
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 1.35
• Shares Outstanding: 41,459,274
• 10 Day Avg. Volume: 259,741
• 30 Day Avg. Volume: 255,208
• PEG Ratio: 2.37
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 15.05
• 1Y Price Target: $207.33
• Price Target Upside: 3.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 8.72
• Revenue Forecast (FY): $2.40B

• Rating: 71 Outperform
• Price Target: $206.00 ▲(2.99% Upside)
• Action: Reiterated Date: 12/25/25
• Date: Action: Reiterated 12/25/25

The score is driven primarily by strong financial fundamentals (healthy margins, strong free-cash-flow growth, and low leverage) and a constructive but mixed earnings update (cost-savings initiatives and buyback authorization offset by margin pressures and softer housing demand). The main drag is weak technical positioning, with the stock trading below key moving averages and negative MACD.

Positive Factors

Cash generation & margins

Sustained high gross and net margins combined with a 46.5% jump in FCF indicate durable cash conversion. Strong free cash flow supports reinvestment in facilities, targeted capex, funding of buybacks/dividends and provides a buffer through cyclical downturns in construction.

Conservative leverage

A low debt-to-equity ratio signals conservative financial policy and affords flexibility for strategic spending. This balance sheet strength supports capital projects, acquisitions and shareholder returns while reducing refinancing risk during industry slowdowns or rising rates.

Market & product diversification

Outperformance in Europe and growth in OEM/component markets show geographic and end-market diversification. Broad product set and distributor relationships reduce reliance on any single housing market, smoothing revenue through regional cycles and supporting long-term share gains.

Negative Factors

Input cost pressures

Tariffs and rising labor/input costs are eroding gross margins, a structural headwind for a manufacturing business. Persistent cost inflation can compress profitability unless offset by lasting price realization or structural cost reductions, challenging margin sustainability.

Housing-cycle exposure

Significant exposure to U.S. residential and commercial construction links revenue to housing starts and commercial activity. A mid-single-digit decline in starts reduces durable demand for connectors and fasteners, weakening top-line visibility and pressuring utilization over months.

Rising leverage & credit covenants

A sizable refinancing package extends liquidity but introduces leverage limits and coverage tests. Covenant floors and a term loan used to refinance debt can constrain capital allocation (buybacks, acquisitions) if leverage rises, increasing the importance of careful debt management.

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

Strong profitability (TTM gross margin ~46%, net margin ~14.9%) and solid cash generation (TTM free cash flow up ~46.5%). Balance sheet is conservative with low leverage (debt-to-equity ~0.18), though rising debt levels and slight gross margin pressure are risks to monitor.

Income Statement

Simpson Manufacturing Co shows strong financial performance with consistent revenue growth, highlighted by a 1.6% increase in TTM revenue. The company maintains healthy profit margins, with a TTM gross profit margin of 46% and a net profit margin of 14.9%. EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.18 in TTM, indicating conservative leverage. The equity ratio remains strong, and the return on equity is healthy at 17%. However, the gradual increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a positive trend with a 46.53% growth in free cash flow in TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is over 50%, indicating efficient cash utilization. Nonetheless, fluctuations in free cash flow growth in previous years highlight potential volatility.

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	564.15M	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	0.00	157.80M	338.20M	337.46M	101.70M
Operating Cash Flow	0.00	338.16M	427.02M	399.82M	151.29M
Investing Cash Flow	0.00	-259.26M	-103.25M	-870.24M	-58.80M
Financing Cash Flow	0.00	-261.46M	-199.03M	465.53M	-71.62M

Simpson Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 200.02 is above the 20-day moving average (MA) of 192.70, above the 50-day MA of 180.43, and above the 200-day MA of 172.63, indicating a bullish trend. The MACD of 7.11 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSD.

Simpson Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	79 Outperform	$8.48B	28.16	38.03%	0.66%	15.10%	23.35%
WMS	75 Outperform	$13.24B	28.25	26.50%	0.47%	2.48%	-6.92%
SSD	71 Outperform	$8.43B	24.68	18.00%	0.69%	4.26%	8.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAON	61 Neutral	$8.35B	84.91	12.08%	0.53%	8.77%	-47.50%
OC	52 Neutral	$11.04B	-22.77	-3.27%	2.43%	3.47%	-148.53%
FBIN	51 Neutral	$6.47B	21.84	12.43%	1.91%	-3.78%	-24.77%

Simpson Manufacturing Co Corporate Events

Simpson Manufacturing Secures New Five-Year Credit Facilities

On December 16, 2025, Simpson Manufacturing Co., Inc. entered into a Second Amended and Restated Credit Agreement that replaces its March 30, 2022 facility and establishes a five-year $600 million revolving credit facility and a five-year $300 million term loan. The term loan was used at closing to refinance existing indebtedness and pay related fees, while the revolving facility will fund permitted acquisitions, investments, and ongoing working capital needs, with the company retaining the option to upsize the combined facilities by the greater of $525 million and 100% of its most recently reported consolidated EBITDA, subject to additional lender commitments and customary conditions. Pricing on the facilities is tied to Simpson’s net leverage ratio, with varying margins over base rates such as SOFR and other benchmark rates, and the agreement imposes customary affirmative and negative covenants, including limits on additional indebtedness, liens, investments, acquisitions, dividends and affiliate transactions, as well as financial maintenance tests requiring a maximum consolidated net leverage ratio of 3.50x (with a temporary step-up after qualifying acquisitions) and a minimum interest coverage ratio of 2.50x. The package of covenants and default provisions, which allows lenders to terminate commitments and accelerate obligations upon specified events, is designed to balance lender protections with Simpson’s financial flexibility, supporting its acquisition strategy and operational liquidity while constraining leverage and risk for creditors.

The most recent analyst rating on (SSD) stock is a Buy with a $187.00 price target. To see the full list of analyst forecasts on Simpson Manufacturing Co stock, see the SSD Stock Forecast page.

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.

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