# Simpson Manufacturing Company (SSD.US)

Canonical: https://gigainvestors.com/s/SSD

Analysis as of: 2026-10-16T07:32:05.742Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $175.12 per share; close as of 2026-10-15.

Estimated value: low $145.24 per share, central $207.38 per share, high $242.03 per share. Buy at or below the central value $207.38 per share. Valuation as of 2026-10-16T07:32:05.742Z; scenarios are not confidence intervals.

Expected annual return: 11.3% at the stated quote. About 11.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.14×

- FY2018: 0.16×

- FY2019: 0.15×

- FY2020: 0.20×

- FY2021: 0.23×

- FY2022: 0.22×

- FY2023: 0.22×

- FY2024: 0.19×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 22.6%

- ROIC, second-lowest year: 17.6%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 45.8%

- Recent gross margin (lower of latest and 3-year median): 45.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 18.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.6%

- FY2017: 15.5%

- FY2018: 21.9%

- FY2019: 23.3%

- FY2020: 30.6%

- FY2021: 34.4%

- FY2022: 28.3%

- FY2023: 27.4%

- FY2024: 20.8%

- FY2025: 21.0%

### economics: pass

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.5B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 34.1%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -2.4 pp

- Working capital / revenue, final three-year average: 34.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.72×

- FY2025: 0.86×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.6% vs 21.0%

- Per-share earnings: 1.86 to 8.24 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.6%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: $4.6B

- Cumulative retained earnings: $1.2B

- Diluted shares, 10-year annual growth: -1.6%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.5%

- Per-share value change: $6.39

- Per-share value, starting three-year median: $1.86

- Per-share value, ending three-year median: $8.24

- Buybacks concentrated in cheaper years (correlation): 0.18

- Average buyback yield: 2.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $956M

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 17.6%

- ROIC, last three-year median: 21.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.86

- FY2017: $1.94

- FY2018: $2.72

- FY2019: $2.98

- FY2020: $4.27

- FY2021: $6.12

- FY2022: $7.83

- FY2023: $8.26

- FY2024: $7.60

- FY2025: $8.24

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.33×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.5%

- FY2017: -2.6%

- FY2018: -3.3%

- FY2019: -6.5%

- FY2020: -1.7%

- FY2021: 7.8%

- FY2022: -2.6%

- FY2023: -2.7%

- FY2024: -0.6%

- FY2025: -3.7%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Jeffrey Ubben](https://gigainvestors.com/VA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 5.3% a year for ten years · sales +4.5%

Story as of 2026-10-16T09:59:37.658Z; price observation 2026-10-15.

Price needs cash profits to grow 5.3% a year for ten years

- 2025-05-12: SSD Q1 Earnings Call: Pricing Actions and Cost Discipline Offset Housing Market Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/ssd-q1-earnings-call-pricing-140526376.html))

- 2025-07-29: Simpson Manufacturing signals 18.5%-20.5% operating margin target while navigating tariffs and housing headwinds ([seekingalpha.com](https://seekingalpha.com/news/4473055-simpson-manufacturing-signals-18_5-percentminus-20_5-percent-operating-margin-target-while?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-13: SSD Q2 Deep Dive: Price Increases, Tariffs, and Market Share Drive Results ([finance.yahoo.com](https://finance.yahoo.com/news/ssd-q2-deep-dive-price-031018379.html))

- 2025-10-28: SSD Q3 Deep Dive: Price Increases and Cost Initiatives Offset Soft Housing Demand ([finance.yahoo.com](https://finance.yahoo.com/news/ssd-q3-deep-dive-price-053314472.html))

- 2026-02-10: SSD Q4 Deep Dive: Pricing Actions and Cost Initiatives Offset Mixed End-Market Trends ([finance.yahoo.com](https://finance.yahoo.com/news/ssd-q4-deep-dive-pricing-123057490.html))

### Sales · FY2024–2025

sales +4.5%; source https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm; observed 2026-02-27.

- FY2016: $861M 

- FY2017: $977M 

- FY2018: $1.1B 

- FY2019: $1.1B 

- FY2020: $1.3B 

- FY2021: $1.6B 

- FY2022: $2.1B 

- FY2023: $2.2B 

- FY2024: $2.2B 

- FY2025: $2.3B 

### Gross margin · FY2025

gross margin 45.9%; source https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm; observed 2026-02-27.

- FY2016: 47.9% 

- FY2017: 45.7% 

- FY2018: 44.5% 

- FY2019: 43.2% 

- FY2020: 45.4% 

- FY2021: 48.0% 

- FY2022: 44.5% 

- FY2023: 47.2% 

- FY2024: 46.0% 

- FY2025: 45.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in lumber & wood production; annual sales are USD 2.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm (filed 2026-02-27); FY2025: revenue 2332808000; grossProfit 1069605000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSD.US: Simpson Manufacturing Co., Inc., together with its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections in the North America, Europe, and the Asia Pacific. The company provides structural products for wood construction, such as connectors, fasteners, and lateral-force resisting systems; anchor, repair, protection and strengthening products including coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems and asphalt products. In addition, the company offers engineering and design services, as well as software solutions. It markets its products to the residential construction, industrial, commercial and infrastructure construction, remodeling and do-it-yourself markets. It offers engineering and design services. It serves its products to dealers, home centers, wood component manufacturers, OEM-relationships, distributors, and contractors industries. The company was founded in 1956 and is headquartered in Pleasanton, California.

### Why customers stay

Margins ranged from 45.9% to 47.2% during 2023–25; it earns 22.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 47.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 46%.

- Source: https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 45.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.1763067521842331],[2017,0.1550389851506385],[2018,0.21856828255221009],[2019,0.2327414772105832],[2020,0.3061736827272034],[2021,0.3436293076415757],[2022,0.28269138690583606],[2023,0.2742994788302925],[2024,0.20805133305960652],[2025,0.20974066979715703]]; median 0.22565487988139665. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 8.9% of cash earnings; earns 34.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 14075000; upkeep 27927000; cash acquisitions 5361000; owner earnings 89734000. Growth capex plus acquisitions / owner earnings = 0.21659571622796264.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 24317000; upkeep 33724000; cash acquisitions 27921000; owner earnings 92617000. Growth capex plus acquisitions / owner earnings = 0.564021723873587.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 29310000; cash acquisitions 2007000; owner earnings 136716000. Growth capex plus acquisitions / owner earnings = 0.01468006670762749.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 37526000; cash acquisitions 2650000; owner earnings 134858000. Growth capex plus acquisitions / owner earnings = 0.019650298832846403.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 37909000; cash acquisitions 2797000; owner earnings 187858000. Growth capex plus acquisitions / owner earnings = 0.014888905449861066.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 7117000; upkeep 42477000; cash acquisitions 218000; owner earnings 266447000. Growth capex plus acquisitions / owner earnings = 0.02752892695357801.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 6333000; upkeep 60890000; cash acquisitions 810765000; owner earnings 333995000. Growth capex plus acquisitions / owner earnings = 2.446437820925463.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 14117000; upkeep 74707000; cash acquisitions 23353000; owner earnings 353987000. Growth capex plus acquisitions / owner earnings = 0.10585134482339748.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 4143837.4425267875; upkeep 176213162.5574732; cash acquisitions 79172000; owner earnings 231409837.4425268. Growth capex plus acquisitions / owner earnings = 0.3600358496566474.

- Source: https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm (filed 2026-02-27); FY2025: growth capex 24383309.62123537; upkeep 136660690.37876463; cash acquisitions 2055000; owner earnings 298373309.6212354. Growth capex plus acquisitions / owner earnings = 0.0886081588691596.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 0.3407952080312562, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,32711000],[2017,36981000],[2018,39891000],[2019,40197000],[2020,40400000],[2021,41619000],[2022,43895000],[2023,45201000],[2024,46500000],[2025,47580000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 119999000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSD.US SharesStats.PercentInsiders = 0.27599999999999997 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm (filed 2026-02-27); le to recoup part or all of the investments we make in attempting to develop new products and technologies and penetrate new markets. Any of these events could reduce our profitability.

Increases in prices of raw materials and energy could negatively affect our sales and profits.

Steel is the principal raw material used in the manufacture of many of our products. The price of steel has historically fluctuated on a cyclical basis and has often depended on a variety of factors over which we have no control including geopolitical and macroeconomic conditions and currency exchange rates. Import tariffs and/or other mandates also could significantly increase the prices of raw materials that are critical to our business, such as steel. In 2025, changes to tariffs on certain imported fastener and anchor products negatively impacted our cost structure, contributing to a decline in gross margin in the North America segment. The cost of producing our products is also sensitive to the price of energy.

The selling prices of our products have not always increased in response to raw material, energy or other cost increases, and we are unable to determine to what extent, if any, we will be able to pass future cost increases through to our customers. Increases in prices of raw materials and energy, our inability or unwillingness to pass increased costs through to our customers could materially and adversely affect our financial condition or results of operations.

We face significant competition in the markets we serve and we may not be able to compete successfully.

In order to compete effectively we must continue to develop enhancements to our existing products, new products and services on a timely basis that meet changing consumer preferences and successfully develop, manufacture and market these new products, product enhancements, additional technologies and services. There can be no assurance that we will be successful in developing and marketing new products, product enhancements, additional technologies and services. Many of our competitors are dedicating increasing resources to competing with us, especially as our products and services become more affected by technological advances and software innovations. Many of our competitors are also leveraging AI to improve product capabilities and operational efficiency, which could further intensify competition. Our inability to effectively compete could reduce the sales of our products and services, which could have a material adverse impact on our business, financial condition, and results of operations.

Additionally, our ability to compete effectively in North America depends, to a significant extent, on the specification or approval of our products by architects, engineers, building inspectors, building code officials and customers and their acceptance of our premium brand. If a significant portion of tho

### What the price says

The price assumes cash profits grow 5.3% yearly over ten years; actual growth was 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.07559149630509238. Price 175.12; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3803704682702669 → FY2025 7.12771576458363. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $42.80 per share

- 2016-11: $47.14 per share

- 2016-12: $43.75 per share

- 2017-01: $43.52 per share

- 2017-02: $43.16 per share

- 2017-03: $43.09 per share

- 2017-04: $41.71 per share

- 2017-05: $40.18 per share

- 2017-06: $43.71 per share

- 2017-07: $44.29 per share

- 2017-08: $43.78 per share

- 2017-09: $49.04 per share

- 2017-10: $55.74 per share

- 2017-11: $59.97 per share

- 2017-12: $57.41 per share

- 2018-01: $58.74 per share

- 2018-02: $55.32 per share

- 2018-03: $57.59 per share

- 2018-04: $54.68 per share

- 2018-05: $63.31 per share

- 2018-06: $62.19 per share

- 2018-07: $72.96 per share

- 2018-08: $76.77 per share

- 2018-09: $72.46 per share

- 2018-10: $57.08 per share

- 2018-11: $58.50 per share

- 2018-12: $54.13 per share

- 2019-01: $61.38 per share

- 2019-02: $59.93 per share

- 2019-03: $59.27 per share

- 2019-04: $63.68 per share

- 2019-05: $60.84 per share

- 2019-06: $66.46 per share

- 2019-07: $61.76 per share

- 2019-08: $64.20 per share

- 2019-09: $69.37 per share

- 2019-10: $82.64 per share

- 2019-11: $81.20 per share

- 2019-12: $80.23 per share

- 2020-01: $82.67 per share

- 2020-02: $79.43 per share

- 2020-03: $61.98 per share

- 2020-04: $72.10 per share

- 2020-05: $80.06 per share

- 2020-06: $84.36 per share

- 2020-07: $96.56 per share

- 2020-08: $98.34 per share

- 2020-09: $97.16 per share

- 2020-10: $88.72 per share

- 2020-11: $91.90 per share

- 2020-12: $93.45 per share

- 2021-01: $92.00 per share

- 2021-02: $97.46 per share

- 2021-03: $103.73 per share

- 2021-04: $112.70 per share

- 2021-05: $112.32 per share

- 2021-06: $110.44 per share

- 2021-07: $112.48 per share

- 2021-08: $113.15 per share

- 2021-09: $106.97 per share

- 2021-10: $106.09 per share

- 2021-11: $115.36 per share

- 2021-12: $139.07 per share

- 2022-01: $112.79 per share

- 2022-02: $118.51 per share

- 2022-03: $109.04 per share

- 2022-04: $103.67 per share

- 2022-05: $108.35 per share

- 2022-06: $100.61 per share

- 2022-07: $103.28 per share

- 2022-08: $92.64 per share

- 2022-09: $78.40 per share

- 2022-10: $85.48 per share

- 2022-11: $93.05 per share

- 2022-12: $88.66 per share

- 2023-01: $107.11 per share

- 2023-02: $107.86 per share

- 2023-03: $109.64 per share

- 2023-04: $125.78 per share

- 2023-05: $118.19 per share

- 2023-06: $138.50 per share

- 2023-07: $158.00 per share

- 2023-08: $159.76 per share

- 2023-09: $149.81 per share

- 2023-10: $133.18 per share

- 2023-11: $166.97 per share

- 2023-12: $197.98 per share

- 2024-01: $180.99 per share

- 2024-02: $208.68 per share

- 2024-03: $205.18 per share

- 2024-04: $173.89 per share

- 2024-05: $165.92 per share

- 2024-06: $168.53 per share

- 2024-07: $192.09 per share

- 2024-08: $183.06 per share

- 2024-09: $191.27 per share

- 2024-10: $179.79 per share

- 2024-11: $188.40 per share

- 2024-12: $165.83 per share

- 2025-01: $168.00 per share

- 2025-02: $164.40 per share

- 2025-03: $157.08 per share

- 2025-04: $153.69 per share

- 2025-05: $155.70 per share

- 2025-06: $155.31 per share

- 2025-07: $179.43 per share

- 2025-08: $191.12 per share

- 2025-09: $167.46 per share

- 2025-10: $176.50 per share

- 2025-11: $167.38 per share

- 2025-12: $161.47 per share

- 2026-01: $176.78 per share

- 2026-02: $193.57 per share

- 2026-03: $171.62 per share

- 2026-04: $190.73 per share

- 2026-05: $189.74 per share

- 2026-06: $209.35 per share

- 2026-07: $187.74 per share

- 2026-08: $182.61 per share

- 2026-09: $170.88 per share

- 2026-10: $175.12 per share

## Annual estimated value (USD per share)

- FY2016: low $21.35 per share, central $23.69 per share, high $26.81 per share

- FY2017: low $23.42 per share, central $26.42 per share, high $30.19 per share

- FY2018: low $27.68 per share, central $31.92 per share, high $36.64 per share

- FY2019: low $36.43 per share, central $44.75 per share, high $51.48 per share

- FY2020: low $49.84 per share, central $65.28 per share, high $75.51 per share

- FY2021: low $68.46 per share, central $95.14 per share, high $110.68 per share

- FY2022: low $102.06 per share, central $137.75 per share, high $160.46 per share

- FY2023: low $127.44 per share, central $181.78 per share, high $212.09 per share

- FY2024: low $125.30 per share, central $180.67 per share, high $211.56 per share

- FY2025: low $135.78 per share, central $194.38 per share, high $227.06 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/920371/000162828026012920/ssd-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.