• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Simpson Manufacturing (SSD): Taking Stock of Valuation After Recent Steady Share Price Gains

    Simply Wall St·12/16/2025 02:15:15
    Listen to the news

    Simpson Manufacturing (SSD) has been quietly grinding higher, with the stock up around 3% over the past month even after a choppy past 3 months and softer 1 year returns.

    See our latest analysis for Simpson Manufacturing.

    At around $168.88 per share, Simpson’s recent 30 day share price return of roughly 3% looks modest against a tougher 90 day patch, but the strong three year total shareholder return above 90% suggests the longer term uptrend is still intact and momentum is consolidating rather than breaking.

    If this kind of steady compounder appeals to you, it might be worth widening the lens and exploring fast growing stocks with high insider ownership for other under the radar opportunities with aligned management.

    With earnings still growing, a share price slightly below analyst targets and only a small estimated discount to intrinsic value, the key question is whether Simpson is quietly undervalued or if the market already reflects its future growth.

    Most Popular Narrative: 13.3% Undervalued

    With Simpson Manufacturing last closing at $168.88 against a narrative fair value of $194.75, the story points to meaningful upside if projections land.

    The accelerating adoption of off site, modular, and mass timber construction solutions is creating significant demand for high performance, engineered fasteners and connectors, an area where Simpson continues to see double digit OEM volume growth and increasing traction with new digital and software solutions. This is likely to support above market revenue growth.

    Read the complete narrative.

    Curious how steady, mid single digit expansion in both sales and margins can still justify a richer future earnings multiple than many industrial peers? The narrative leans on disciplined share count reduction, resilient profitability through the housing cycle, and a valuation reset that still assumes a lower earnings multiple than the broader building group. Want to see exactly which growth, margin and multiple assumptions power that $194.75 fair value call and how they stack up over the next few years?

    Result: Fair Value of $194.75 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this upside case could falter if a prolonged housing slowdown or persistent steel cost inflation compresses volumes, margins, and ultimately investor confidence.

    Find out about the key risks to this Simpson Manufacturing narrative.

    Build Your Own Simpson Manufacturing Narrative

    If you see the story differently or want to stress test the assumptions with your own inputs, you can build a custom view in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Simpson Manufacturing.

    Looking for your next investing edge?

    Do not stop at Simpson when a broader world of opportunities is just a click away. Use the Simply Wall St Screener to sharpen your watchlist today.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.