Simpson Mfg. Co.

Simpson keeps 24.0% operating margins on $2.3B of revenue and still gets a $215 target.

If you own SSD, your real risk is a housing slowdown.

ssd

industrials mid cap updated mar 13, 2026
$192.96
market cap ~$8B · 52-week range $137–$212
xvary composite: 69 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
It makes metal hardware that holds buildings together in new construction and repairs.
how it gets paid
Last year Simpson Mfg made $2.3B in revenue. Structural connectors was the main engine at $1.15B, or 50% of sales.
why it's growing
Revenue grew 4.5% last year. Revenue was $1.8B, up 188% vs. prior year, and EPS was $1.35 versus $1.45 expected.
what just happened
The quarter missed by 6.9%, but gross margin held at 46.6%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
23.4x trailing p/e — priced about right
0.7% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 69/100 — average
What they do
It makes metal hardware that holds buildings together in new construction and repairs.
You do not swap out tested building hardware on a whim. Simpson is the leading structural connector maker in the U.S. and Europe, and its parts sit in jobs where mistakes cost more than the hardware. The company has 5,158 employees and 70 years of testing behind the brand.
industrials mid-cap construction repair quality
How they make money
$2.3B annual revenue · their business grew +4.5% last year
Structural connectors
$1.15B
+5.0%
Anchors
$0.55B
+4.0%
Retrofit hardware
$0.35B
+6.0%
Other specialty products
$0.25B
+3.0%
The products that matter
structural connectors and anchors
Construction Connectors
$2.3B revenue · +4.2%
it's effectively the whole $2.3B business on this page, and it grew 4.2% last year. concentration helps focus, but it also means a building slowdown hits almost everything at once.
core
Key numbers
$215
18-mo target
11% above $192.96. You pay for a stable construction business, not a lottery ticket.
24.0%
operating margin
That means 24 cents of operating profit on each sales dollar.
16.0%
return on capital
Every $1 tied up in the business has been throwing off 16 cents of operating profit.
$356M
long-term debt
That is 4% of capital. The balance sheet has room if housing cools.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 3 — safer than 50% of stocks
  • price stability 65 / 100
  • long-term debt $356M (4% of capital)
  • net profit margin 14.7% — keeps 15 cents of every dollar in revenue
  • return on equity 18% — $0.18 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in SSD 3 years ago → it's now worth $17,960.

The index would have given you $14,540.

source: institutional data · total return
What just happened
missed estimates
The quarter missed by 6.9%, but gross margin held at 46.6%.
Revenue was $1.8B, up 188% vs. prior year, and EPS was $1.35 versus $1.45 expected. The miss was small next to the margin base.
$1.8B
revenue
$1.35
eps
46.6%
gross margin
EPS miss
EPS came in at $1.35 versus $1.45 expected. That 6.9% miss is small next to a 46.6% gross margin.
source: company earnings report, 2026

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What could go wrong

the #1 risk is a slower u.s. housing and repair cycle.

med
housing demand cools
This page shows one core $2.3B revenue engine tied to construction activity. If housing starts and remodeling soften, the hit is broad rather than isolated.
impact: pressure can reach most of the revenue base because there is no second growth engine shown here to offset it.
med
building code changes force redesigns
New structural or safety requirements could raise compliance costs and force product updates. That is a real risk when your products sit inside regulated construction standards.
impact: redesign and compliance expense would squeeze margins on a business currently earning 13.5% net profit.
med
litigation or product liability
When you make structural components, lawsuits matter more than they do for decorative products. Even isolated cases can become expensive distractions.
impact: legal costs may not break the balance sheet, but they can dent earnings and sentiment in a stock already trading at 23.4x earnings.
A construction slowdown is the cleanest way this story gets harder: it would pressure essentially the full $2.3B revenue line while the stock still carries a quality multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
housing demand data
Track housing starts, repair activity, and general construction demand. This business does not have much hiding place if the cycle softens.
calendar
next earnings release
Watch whether revenue keeps growing and whether margin stays near the recent 14.8% level.
metric
buyback execution
The new $150M authorization runs through the end of 2026. Repurchases matter more here than the 0.7% dividend.
risk
code and legal updates
Any product-liability case or building-code shift deserves attention fast. Structural products live in a world where details become dollars.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts think SSD has better-than-average 12-month price momentum.
risk profile
average
stability score 3 — this is a middle-of-the-road risk profile, not a bunker stock and not a rollercoaster.
chart momentum
top 20%
technical score 2 — the chart has been acting better than most stocks in the coverage universe.
earnings predictability
80 / 100
management's results tend to land close to expectations. That lowers drama, not risk.
source: institutional data
Institutional activity

institutions have been net selling for 3 consecutive quarters — 145 buyers vs. 170 sellers in 4q2025. total institutional holdings: 42.4M shares. net selling for 3 quarters.

source: institutional data
Price targets
3-5 year target range
$149 $281
$193 current price
$215 target midpoint · +11% from current · 3-5yr high: $285 (+50% · 11% ann'l return)
source: institutional data · analyst targets

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