One-glance verdict
Overvalued
$115.54 our estimate vs market $172.54
Wall Street consensus: $219.00 (89.5% higher than our fair-value estimate)
49% above our estimate, beyond the bull case
Fundamentals snapshot
Simpson Manufacturing Co., Inc.
SSD · NYQ · Basic Materials · Lumber & Wood Production
Current price
$172.54
52-week range
$156.32 - $213.49
Market cap
$7.07B
Balance sheet
Healthy
58.29x Strong cushion
Net cash $4.02M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.8% last year.
- Reward Returns 18.7% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.3% (peer median: 1.2%).
What this company does
Simpson Manufacturing Co., Inc.
Simpson Manufacturing makes the essential metal parts, like connectors and fasteners, that are used to hold houses and other buildings together. They sell these products for everything from new home construction to home improvement projects, so the company's performance is often linked to the health of the construction and housing markets. This means their business often does well when more people are building or remodeling.
How the company got here
Founded by Barclay Simpson in 1956, the company started out making connectors for joining wood pieces in construction, like joist hangers which you might see holding up the deck in your backyard. It grew from that single product to become a major force in the construction industry, known for making buildings safer and stronger. The company became publicly traded on the stock market in 1994, allowing anyone to buy a small piece, or share, of the company. Over the years, it has expanded its product lines and now operates around the world.
What it actually does
Simpson Manufacturing, primarily through its well-known brand Simpson Strong-Tie, creates the hidden hardware that holds buildings together. Think of them as the skeleton of a house: they make the metal connectors, screws, anchors, and straps that builders use to connect wood and concrete parts of a structure securely. These products are critical for making sure buildings can withstand forces like wind and earthquakes. They also offer software that helps engineers and architects design buildings using their products, and sell to everyone from large construction companies to do-it-yourself (DIY) home improvers at local hardware stores.
Wood Construction
This is the company's largest business area, making up the vast majority of its sales. It includes a huge variety of metal products like connectors, truss plates (metal plates with teeth that hold roof structures together), and specialized screws and fastening systems. These are the essential parts used in wood-frame construction for everything from new houses and apartment buildings to home renovation projects. If you've ever seen the frame of a house being built, you've likely seen Simpson's products holding the wooden beams and posts together.
Concrete Construction
This is a smaller but still significant part of the company's business. It focuses on products used for building with concrete, brick, and masonry. This includes special adhesives, chemical anchors that glue rods into concrete, and materials to repair or strengthen existing concrete structures like bridges and commercial buildings. For example, they make the products used to securely bolt things down to a concrete foundation.
What management is betting on now
The company's leadership is focused on growing faster than the overall construction market by continuing to invent new products and expanding their digital tools to make it easier for customers to use their solutions. They are also working to make their manufacturing and warehouse operations more efficient to improve their operating margin (the percent of each sales dollar left after paying for day-to-day business costs). A key part of their strategy is to be a one-stop-shop for structural solutions, providing not just the parts but also the software and engineering support that builders need.
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 $115.54 vs current price $172.54
Wall Street consensus is the average analyst price target: $219.00 (89.5% higher than our fair-value estimate).
Our most-likely fair value is $115.54 a share — about 33.0% below today's price of $172.54, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $4.0M - more cash than debt. Interest coverage 58.3x.
Net debt
$-4.02M
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 $446.50M 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 $408.40M 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
1 Risk
Rewards
-
Revenue grew 3.8% last year.
-
Returns 18.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.3% (peer median: 1.2%).
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)
18.90x
Forward P/E
17.77x
P/B
3.45x
P/S
2.92x
EV/EBITDA
12.17x
PEG ratio
3.80x
Profitability
How much profit each dollar creates
Gross margin
45.8%
Operating margin
24.4%
Net margin
15.6%
ROE
18.7%
ROA
9.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
3.29x
Quick ratio
1.99x
Total debt
$446.50M
Total cash
$450.53M
Growth
How the business has been compounding
Revenue TTM
$2.42B
Revenue 5Y CAGR
10.4%
EPS TTM
9.13
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
0.7%
Payout ratio
12.8%
Last ex-div date
2026-10-01