One-glance verdict
Overvalued
$145.54 our estimate vs market $193.34
Wall Street consensus: $213.60 (46.8% higher than our fair-value estimate)
33% above our estimate, beyond the bull case
Fundamentals snapshot
Simpson Manufacturing Co., Inc.
SSD · NYQ · Basic Materials · Lumber & Wood Production
Current price
$193.34
52-week range
$156.32 - $213.49
Market cap
$7.92B
Balance sheet
Healthy
58.29x Strong cushion
Net cash $100.64M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.8% last year.
- Reward Returns 18.3% on equity, ahead of 66% of its peers.
- Risk Stock trades 8.8% above its 5-year average P/E.
- Risk Insider ownership is only 0.3% (peer median: 1.2%).
What this company does
Simpson Manufacturing Co., Inc.
Simpson Manufacturing Co., Inc. makes products that help build things, like special connectors and fasteners for wood, concrete, and steel buildings across North America, Europe, and Asia. Their main money comes from selling these building components and related services to construction companies and stores. This is important because their products are essential for making sure buildings are strong and safe.
How the company got here
Simpson Manufacturing Co., Inc. has a long history, starting in 1914 with a window screen company founded by Walter C. Simpson. His son, Barclay Simpson, took over and in 1956, established the connector business that is the foundation of the company today, known as Simpson Strong-Tie. The company went public in 1994, expanding its reach and product offerings over the decades. It has grown from a small family business into a global leader in building solutions, driven by innovation and a commitment to quality and safety.
What it actually does
Simpson Manufacturing designs, engineers, and produces structural solutions that make buildings and other structures safer and more secure. They create a wide variety of products for both wood and concrete construction, including connectors, fasteners, anchors, and reinforcing materials. These products are essential for ensuring the integrity of buildings, especially in areas prone to earthquakes or high winds. Their customer base includes residential, commercial, and infrastructure construction projects, as well as the do-it-yourself market.
North America
This segment is the core of Simpson Manufacturing's operations, primarily driven by its well-known Simpson Strong-Tie brand. It focuses on designing and manufacturing a broad range of products for wood and concrete construction. This includes everything from joist hangers and structural connectors used in framing to anchors and fasteners that secure concrete and steel elements. The products are sold through various channels like lumber dealers, home centers, and directly to contractors, serving the residential, commercial, and infrastructure construction markets within the region.
Europe
In Europe, Simpson Manufacturing operates through platforms like ETANCO, offering specialized products for construction. This segment includes solutions for roofing, façades, waterproofing, and industrial safety. While the product lines may differ from North America to cater to specific European building codes and practices, the underlying goal remains the same: to provide high-quality, engineered solutions for structural integrity and building envelope protection. This region represents a significant part of the company's international presence.
What management is betting on now
Simpson Manufacturing's management is focused on several key strategies for future growth and profitability. They are investing in digital solutions and enhancing their engineering capabilities to provide better tools for customers. The company is also prioritizing cost management and operational efficiency to achieve ambitious margin goals, aiming for a 20% EBIT margin (Earnings Before Interest and Taxes, a measure of a company's profitability from its core operations). Additionally, they are committed to returning value to shareholders through stock buybacks and dividends, while also focusing on innovation and expanding their product offerings to meet evolving market needs.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-3.23M
FY2024 Q4
$60.29M
FY2025 Q1
$-42.60M
FY2025 Q2
$84.19M
FY2025 Q3
$133.80M
FY2025 Q4
$118.99M
FY2026 Q1
$17.91M
FY2026 Q2
$197.55M
Revenue
$671.08M
Net income
$127.04M
Diluted EPS
3.09
Operating cash flow
$212.94M
Free cash flow
$197.55M
Fetching…
Sources
Revenue
$587.96M
Net income
$88.22M
Diluted EPS
2.13
Operating cash flow
$35.55M
Free cash flow
$17.91M
Fetching…
Sources
Revenue
$539.35M
Net income
$56.21M
Diluted EPS
1.34
Operating cash flow
$155.69M
Free cash flow
$118.99M
Fetching…
Sources
Revenue
$623.51M
Net income
$107.44M
Diluted EPS
2.58
Operating cash flow
$170.19M
Free cash flow
$133.80M
Fetching…
Sources
Revenue
$631.05M
Net income
$103.54M
Diluted EPS
2.47
Operating cash flow
$125.22M
Free cash flow
$84.19M
Fetching…
Sources
Revenue
$538.89M
Net income
$77.88M
Diluted EPS
1.85
Operating cash flow
$7.56M
Free cash flow
$-42.60M
Fetching…
Sources
Revenue
$517.43M
Net income
$55.44M
Diluted EPS
1.31
Operating cash flow
$115.80M
Free cash flow
$60.29M
Fetching…
Sources
Revenue
$587.15M
Net income
$93.52M
Diluted EPS
2.21
Operating cash flow
$103.28M
Free cash flow
$-3.23M
Fetching…
Sources
Is it cheap or expensive?
Fair value $145.54 vs current price $193.34
Wall Street consensus is the average analyst price target: $213.60 (46.8% higher than our fair-value estimate).
Our most-likely fair value is $145.54 a share — about 24.7% below today's price of $193.34, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $100.6M - more cash than debt. Interest coverage 58.3x.
Net debt
$-100.64M
Interest coverage
58.29x
Simpson Manufacturing Co., Inc.'s profit covers its interest bill about 58.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
SSD
BASELINE
Simpson Manufacturing Co., Inc.
Total debt $390.61M Interest coverage 58.29x This is the baseline the peer rows are being compared against.
Total debt $377.00M Interest coverage 18.50x -68% vs SSD Carries about 3.2x less debt cushion than SSD.
Total debt $234.36M Interest coverage 33.62x -42% vs SSD Carries about 1.7x less debt cushion than SSD.
Total debt $549.25M Interest coverage 8.39x -86% vs SSD Carries about 6.9x less debt cushion than SSD.
Total debt $1.80B Interest coverage 10.70x -82% vs SSD Carries about 5.4x less debt cushion than SSD.
What you should know
The case for and against SSD
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.8% last year.
-
Returns 18.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 8.8% above its 5-year average P/E.
-
Insider ownership is only 0.3% (peer median: 1.2%).
-
Operating margin compressed from 22.5% to 22.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.90x
Forward P/E
19.92x
P/B
3.66x
P/S
3.25x
EV/EBITDA
13.01x
PEG ratio
3.80x
Profitability
How much profit each dollar creates
Gross margin
45.7%
Operating margin
22.1%
Net margin
15.6%
ROE
18.3%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
3.38x
Quick ratio
2.07x
Total debt
$390.61M
Total cash
$491.25M
Growth
How the business has been compounding
Revenue TTM
$2.42B
Revenue 5Y CAGR
10.4%
EPS TTM
9.25
EPS 5Y CAGR
2.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$574.36M
Free CF TTM
$297.62M
FCF margin
12.3%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
12.8%
Last ex-div date
2027-01-07