Orin
SSDNYSE·Construction Materials

Simpson Manufacturing Co., Inc. SSD

Market cap $7.2BP/E 19.0× trailingGross margin 45.8%Reports Mon 26 Oct, after the close
$175.23
+0.21 (+0.12%)live 09:40 ET
52-wk $156.32 – $213.49
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Orin's take
0.62conviction · moderate
Refreshed 26 Aug · take v4. A new filing or a print queues the next refresh.

Simpson Manufacturing remains a hold as the valuation discount to peers is compelling on earnings-based metrics — 20.3x P/E and 12.7x EV/EBITDA versus peer medians of 29.0x and 16.2x respectively — but three years of flat EPS ($8.26 in 2023 vs $8.24 in 2025) and operating margin compression from 21.7% to 19.0% over the same period argue against turning constructive before margin stabilization is evident. The 3.17x P/S, a 94% premium to the peer median of 1.63x, further suggests the market is paying for a revenue base whose profitability has not yet recovered.

Technicals have deteriorated since mid-August with price at $186.58 below the 50-day MA of $194.21 and a bearish MACD histogram of -0.95, while smart money sits near neutral at 0.0157 as of the quarter ended 2026-06-30, reinforcing a wait-and-see stance.

What could go wrong

  • Margin compression persists. Operating margin fell from 22.45% in 2022 to 18.97% in 2025; if capex remains elevated at $161M without revenue acceleration, FCF margin could compress further from the current 12.76%.
  • P/S premium unwinds. At 3.17x P/S versus a peer median of 1.63x, any disappointment in revenue growth — currently 4.51% YoY — could trigger a de-rating even if earnings hold.
  • Technical breakdown. Price at $186.58 is below the 50-day MA of $194.21 with RSI at 42.9 and a negative MACD histogram; a break below the 200-day MA at $183.27 would signal further downside.
  • Insider net selling by value. Over the trailing 24 months, insiders net acquired 51,093 shares but net sold $4.6M in value, indicating disposals at higher prices than acquisitions, which is not a strong vote of confidence.

What would change my mind

Margin recovery confirmed. Q3 or Q4 2026 operating margin re-expands above 19.5% with revenue growth sustaining above 5% YoYbullish
Price breaks below 200-day MA. SSD closes below $183.27 on volume, confirming a technical breakdownbearish
Capex normalization. Annual capex declines toward the $90–110M range, lifting FCF margin back toward 15%+bullish
Smart money divergence. SM score turns meaningfully negative (below -0.03) with fund count declining below 45 in the next 13F filingbearish

Where this comes from: peer_relative composite as of 2026-08-25 · peer_relative composite as of 2026-08-25 · peer_relative composite as of 2026-08-25 · FMP annual fundamentals FY2023 and FY2025. Orin's read on SSD; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Fmr$768.2M0.0% of fund
Vanguard Portfolio Management$402.9M0.0% of fund
Vanguard Capital Management$388.3M0.0% of fund
State Street$273.9M0.0% of fund
Morgan Stanley$251.5M0.0% of fund
Quantinno Capital Management$180.5M0.2% of fund

70 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 67 Form 4 filings, net −$3.6M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Basic Materials
MetricNowOwn medianSector
P/E19.0×29.8×
EV/EBITDA11.9×
P/S2.97×
P/B3.4×
What the price assumes

10.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.3B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

8 firms · 2026-09-23
Consensus target

$216

$212$220 · +23% against today's price

How they rate it
  • 4 buy or overweight
  • 4 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 28.0× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
SSDSimpson Manufacturing Co., Inc.$7B19.0×11.9×45.8%15.6%18%
ESABESAB Corporation$4B24.7×14.2×35.7%5.7%8%
FBINFortune Brands Innovations, Inc.$5B31.7×15.4×45.6%3.4%6%
FSSFederal Signal Corporation$7B24.1×15.2×29.2%11.7%20%
IESCIES Holdings, Inc.$13B28.0×21.2×25.9%11.4%44%
PRIMPrimoris Services Corporation$4B28.7×16.0×8.6%1.9%8%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 32.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 26.6×FY25 19.5×

What its sector has traded at

Basic Materials
FY14 23.8×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $175.23
52-week range$156 – $213
Analyst targets$212 – $220
At sector P/E (30×)$274

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.