Simpson Manufacturing Company Inc. Common Stock (SSD)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses, clean balance sheets, and a price that leaves room for error. Simpson manufactures and sells structural connectors, fasteners, and systems for wood, concrete, and steel construction. Those are necessary building components, but FairStock classifies the company as CYCLICAL - Lumber & Wood Production: earnings follow the economic cycle. That matters because even good businesses can see profits swing with construction demand. The recent numbers are solid. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $671.1M, net income $127.0M, and diluted EPS $3.09. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $631.1M, net income $103.5M, and diluted EPS $2.47. For full-year fiscal 2025, revenue was $2.3B, net income $345.1M, and diluted EPS $8.24, versus diluted EPS of $7.60 in fiscal 2024. The balance sheet is strong: D/E is 0.21, the Piotroski F-Score is 8/9, and the Altman Z-Score is 5.81. Return on equity is 18.72%, and trailing free cash flow is $468.4M, which gives a 6.6% FCF yield. The problem is the price. At the 2026-10-13 close of $172.19, the FairStock P/E is 18.86, P/B is 3.44, and EV/EBITDA is 12.14. The Graham Number is $103.45, so the margin of safety is -66.45%. PEG is 1.42, and the FairStock Score is 54/100. I like the business, but the valuation already assumes a lot. A cyclical company bought above conservative value can disappoint even when operations are decent.

In plain English: Simpson Manufacturing makes metal connectors, fasteners and structural products used in wood, concrete and steel construction. The business looks financially strong: it earns good profits, carries little debt and turns a decent amount of sales into cash. At the recent close of $172.19, the price looks on the expensive side compared with a conservative estimate of what its earnings and assets support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer