Simpson Manufacturing Co., Inc. (SSD) AI Stock Analysis
SSD AI stock analysis summary
AI ResearchSimpson Manufacturing Co., Inc. (SSD) designs and manufactures wood and concrete construction products, generating $2.42B in trailing twelve-month revenue. The company maintains an operating margin of 24.4% and generated $297.6M in FY2025 free cash flow. With net cash of $26.8M as of June 30, 2026, Simpson pairs a conservative balance sheet with ongoing shareholder returns.
- Market cap
- $7.23B
- Revenue (TTM)
- $2.42B
- P/E
- 19.3x fwd 17.6x
- 1Y return
- 3.4% S&P 500 16.8%
- Avg. target
- $219.00 24.1% vs last close
Bull case
- Quarterly earnings grew 25.1% year-over-year in the quarter ended June 30, 2026, supporting a trailing twelve-month operating margin of 24.4%.
- The company holds a net cash balance of $26.8M alongside a current ratio of 3.29 as of June 30, 2026.
- Analysts maintain a mean price target of $219.00, representing 24.1% upside over the last close of $176.41.
Bear case
- Simpson's 1-year return of 3.4% and 5-year return of 58.6% both lagged behind the S&P 500 returns of 16.8% and 83.0%.
- The stock trades at a forward P/E of 17.6x and a price-to-sales ratio of 3.0x, above the US-listed Basic Materials peer medians of 13.4x and 1.8x.
- Annual revenue growth slowed from 34.5% in FY2022 to 0.8% in FY2024 and 4.5% in FY2025.
What Simpson Manufacturing does
Simpson Manufacturing Co., Inc. specializes in the design, engineering, manufacturing, and sale of wood and concrete construction products. Its wood construction portfolio includes connectors, truss plates, fastening systems, shearwalls, pre-fabricated lateral systems, and connectors for timber, structural steel, and cold-formed steel applications. For concrete construction, the company offers adhesives, specialty chemicals, mechanical anchors, carbide drill bits, grouts, coatings, sealers, mortars, and fiber-reinforced polymer repair solutions. Simpson also provides engineering, design services, and software solutions, serving residential construction, commercial, remodeling, and DIY markets across the United States, Canada, Europe, Asia, and Oceania.
Growth and profitability
Simpson increased revenue at a 5-year CAGR of 13.0% from FY2020 to FY2025, reaching $2.33B in FY2025 with 4.5% annual growth. Gross margin was 45.9% in FY2025 compared to 48.0% in FY2021, while operating margin was 19.0% compared to 23.4% in FY2021. FY2025 net income reached $345.1M, yielding EPS of $7.99. In the trailing twelve months ended June 30, 2026, revenue totaled $2.42B, operating margin expanded to 24.4%, and net profit margin reached 15.7%. For the quarter ended June 30, 2026, quarterly revenue rose 6.3% year-over-year, and quarterly earnings expanded 25.1%, contributing to trailing twelve-month EPS of $9.15.
Balance sheet and cash flow
As of June 30, 2026, Simpson held $450.5M in cash and short-term investments against $423.8M in total debt, resulting in a net cash position of $26.8M. The company reported a current ratio of 3.29 and a debt-to-equity ratio of 0.20, with shareholders' equity of $2.12B and total assets of $3.14B. FY2025 operating cash flow reached $458.7M. Capital allocation in FY2025 included $161.0M for capital expenditures, $120.0M for share buybacks, and $47.6M for dividends, contributing to a 5.4% reduction in share count over 5 years.
Valuation and performance
Simpson has a market capitalization of $7.23B and an enterprise value of $7.15B. The stock trades at a trailing P/E of 19.3x, slightly below the 19.7x median of its US-listed Basic Materials peers, while its forward P/E of 17.6x stands above the peer median of 13.4x. Its price-to-sales multiple of 3.0x and EV/EBITDA of 12.3x compare to peer medians of 1.8x and 10.5x, respectively. Over the trailing 1-year period, Simpson's stock returned 3.4% compared to 16.8% for the S&P 500, and its 5-year return of 58.6% trailed the index's 83.0% gain.
SSD dividend
Simpson pays an annualized forward dividend of $1.20 per share, which represents a dividend yield of 0.68% and a payout ratio of 13.3%. The dividend is paid on a quarterly schedule and has been maintained for 23 consecutive years. Over the past 5 years, the dividend has grown at an annualized rate of 10.6%, with the most recent ex-dividend date on October 1, 2026.
What analysts expect
Wall Street analysts covering Simpson assign 2 Strong Buy, 1 Buy, 2 Hold, and 0 Sell ratings. The mean price target of $219.00 indicates 24.1% upside compared to the closing price of $176.41. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $2.42B and EPS of $9.12, representing 14.4% EPS growth. Simpson has exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 26, 2026.
Key risks and what to watch
- Operating margin declined from 23.4% in FY2021 to 19.0% in FY2025 before rising to 24.4% in the trailing twelve months.
- A stock beta of 1.32 indicates that the shares exhibit higher volatility than the broader equity market.
- High institutional ownership of 102.2% creates the risk of share price pressure if large institutions trim positions.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SSD AI stock analysis
This page is an AI-written research summary of Simpson Manufacturing Co., Inc. (SSD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SSD income statement, SSD balance sheet, SSD key metrics, SSD analyst forecast, SSD chart. See the SSD stock overview for the latest quote and news.
SSD AI stock analysis FAQ
What products does Simpson Manufacturing produce?
Simpson Manufacturing designs and produces wood construction products such as connectors, truss plates, shearwalls, and fastening systems, as well as concrete solutions including adhesives, mechanical anchors, grouts, and repair mortars.
What is Simpson Manufacturing's dividend policy and payout?
Simpson pays an annual forward dividend of $1.20 per share, delivering a 0.68% yield with a payout ratio of 13.3%. It has paid dividends for 23 consecutive years with a 5-year annualized growth rate of 10.6%.
What is Simpson Manufacturing's financial position?
As of June 30, 2026, Simpson held $450.5M in cash and short-term investments and $423.8M in debt, resulting in net cash of $26.8M, a current ratio of 3.29, and a debt-to-equity ratio of 0.20.
When does Simpson report earnings next and what are analyst expectations?
Simpson's next earnings date is October 26, 2026. For FY2026, analysts estimate revenue of $2.42B and EPS of $9.12, reflecting expected annual earnings growth of 14.4%.