Simpson Manufacturing Co (SSD) AI Stock Analysis

• Market Cap: $6.97B
• Dividend Yield: 0.67%
• Average Volume (3M): 261.20K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.99
• Revenue Growth: 2.95%
• EPS Growth: 0.76%
• Country: US
• Employees: 5,872
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 2.47
• Shares Outstanding: 41,617,300
• 10 Day Avg. Volume: 300,664
• 30 Day Avg. Volume: 261,201
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 11.88
• 1Y Price Target: $190.00
• Price Target Upside: 13.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $188.00 ▲(12.35% Upside)

Simpson Manufacturing Co's overall stock score is driven by strong financial performance and positive earnings call insights. However, bearish technical indicators and moderate valuation metrics weigh on the score. The company's strategic focus and operational stability are positive, but market uncertainties and cost pressures remain concerns.

Positive Factors

Revenue Growth

The consistent revenue growth, driven by strategic acquisitions and price increases, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operating Margin Stability

Stable operating margins reflect effective cost management and pricing strategies, ensuring profitability and competitive positioning in the construction industry.

Balance Sheet Health

A low Debt-to-Equity Ratio indicates reduced financial leverage, enhancing financial stability and flexibility for future investments and growth opportunities.

Negative Factors

Flat Volume and Market Challenges

Flat volumes amidst market challenges suggest potential difficulties in scaling operations, which could hinder growth and market share expansion in the long term.

Gross Margin Pressures

Stagnant gross margins amidst rising costs may pressure profitability, requiring strategic adjustments to maintain competitive pricing and margin sustainability.

Tariff and Pricing Challenges

Tariff-induced cost increases could impact pricing strategies and market competitiveness, potentially affecting sales volumes and profit margins over time.

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 generates revenue through the sale of its manufactured products, which include structural connectors, fastening systems, and related tools and equipment. The company's primary revenue streams come from the wood construction and concrete construction sectors, where they provide essential products for framing, anchoring, and reinforcing structures. Additionally, Simpson earns income from its international operations by exporting products to global markets. Partnerships with distributors, contractors, and construction firms enhance their market reach and drive sales. The company's focus on innovation leads to the development of new products that meet evolving industry standards, further contributing to its revenue growth.

Simpson Manufacturing Co Financial Statement Overview

Summary

Simpson Manufacturing Co demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is well-capitalized with low leverage, providing financial stability. Despite some volatility in cash flow metrics, the company maintains positive free cash flow and liquidity.

Income Statement

Simpson Manufacturing Co has demonstrated strong performance in its income statement metrics. The company shows stable revenue growth with a Revenue Growth Rate of approximately 1.9% in the TTM compared to the previous year. The Gross Profit Margin stands at 46.1% for the TTM, indicating effective cost management. Net Profit Margin is at 14.5%, reflecting robust profitability. EBIT and EBITDA margins are healthy at 19.6% and 25.2% respectively. These margins highlight efficient operational management and profitability in the construction industry.

Balance Sheet

The balance sheet of Simpson Manufacturing Co reflects a solid financial position with a strong equity base. The Debt-to-Equity Ratio has improved significantly to 0.03 in the TTM from 0.27 the previous year, indicating lower financial leverage and reduced reliance on debt. The Return on Equity (ROE) for the TTM is 13.7%, showcasing efficient use of equity in generating profits. The Equity Ratio is high at 81.4%, demonstrating a strong equity cushion and lower risk of insolvency. Overall, the company maintains financial stability with a well-capitalized balance sheet.

Cash Flow

Simpson Manufacturing Co exhibits a stable cash flow position. The Free Cash Flow Growth Rate shows a decrease of around 25% from the previous annual figure, but the company maintains positive free cash flow, which is a good sign of liquidity. The Operating Cash Flow to Net Income Ratio stands at 0.66, indicating that the company generates sufficient operating cash to cover its net income. The Free Cash Flow to Net Income Ratio is 0.36, reflecting adequate cash flow generation relative to profitability. These metrics suggest a healthy cash flow position, despite some fluctuations in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.27B	2.23B	2.21B	2.12B	1.57B	1.27B
Gross Profit	1.05B	1.03B	1.04B	941.17M	754.71M	575.52M
EBITDA	571.01M	520.74M	558.69M	532.95M	411.44M	297.60M
Net Income	330.40M	322.22M	353.99M	334.00M	266.45M	187.00M
Balance Sheet
Total Assets	2.96B	2.74B	2.70B	2.50B	1.48B	1.23B
Cash, Cash Equivalents and Short-Term Investments	190.40M	239.37M	429.82M	300.74M	301.15M	274.64M
Total Debt	457.50M	480.66M	551.57M	635.47M	45.86M	46.34M
Total Liabilities	1.02B	923.03M	1.02B	1.09B	300.13M	251.63M
Stockholders Equity	1.93B	1.81B	1.68B	1.41B	1.18B	980.94M
Cash Flow
Free Cash Flow	118.34M	157.80M	338.20M	337.46M	101.70M	169.66M
Operating Cash Flow	219.07M	338.16M	427.02M	399.82M	151.29M	207.57M
Investing Cash Flow	-163.57M	-259.26M	-103.25M	-870.24M	-58.80M	-39.85M
Financing Cash Flow	-168.35M	-261.46M	-199.03M	465.53M	-71.62M	-126.78M

Simpson Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 167.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• 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 167.34 is below the 20-day moving average (MA) of 183.77, below the 50-day MA of 183.67, and above the 200-day MA of 166.38, indicating a neutral trend. The MACD of -4.42 indicates Positive momentum. The RSI at 27.24 is Positive, neither overbought nor oversold. The STOCH value of 5.44 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
AWI	80 Outperform	$8.48B	29.02	35.33%	0.63%	15.59%	23.46%
WMS	75 Outperform	$10.94B	25.04	21.03%	0.48%	0.24%	-12.68%
FBIN	69 Neutral	$6.36B	16.78	16.81%	1.87%	-5.79%	-9.90%
OC	69 Neutral	$11.82B	37.30	6.45%	1.89%	13.08%	-67.65%
SSD	68 Neutral	$6.97B	21.34	17.88%	0.67%	2.95%	0.76%
AAON	66 Neutral	$7.82B	63.70	14.66%	0.40%	5.39%	-34.28%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Simpson Manufacturing Co Corporate Events

Simpson Manufacturing Co Reports Q2 2025 Financial Results

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.