Assessing Simpson Manufacturing’s Valuation After Securing $900 Million in New Credit Facilities

Simpson Manufacturing (SSD) just lined up $900 million in new five year credit facilities, refinancing older debt while opening fresh capacity for acquisitions, investments, and day to day liquidity that could reshape its growth path.

See our latest analysis for Simpson Manufacturing.

The fresh $900 million credit package lands at a time when Simpson Manufacturing’s share price has been broadly steady, with a modest year to date share price gain and a standout three year total shareholder return that still signals solid long term momentum.

If this kind of balance between resilience and growth appeals to you, it could be worth exploring aerospace and defense stocks as another pocket of the market where structural demand can underpin long term opportunities.

Yet with the stock trading near flat over 12 months, at a premium to book but only a modest discount to analyst targets, investors now face a key question: Is Simpson still a value opportunity, or has the market already priced in its next leg of growth?

Most Popular Narrative Narrative: 14.4% Undervalued

With Simpson Manufacturing last closing at $166.61 against a narrative fair value of $194.75, the story leans toward upside built on durable fundamentals and disciplined capital returns.

Analysts expect earnings to reach $432.2 million (and earnings per share of $10.09) by about September 2028, up from $330.4 million today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Want to see what kind of revenue runway, margin expansion, and future earnings multiple are being baked into that target, and why buybacks quietly amplify it? The full narrative unpacks the precise growth path, profitability lift, and valuation reset that have to line up almost perfectly for this fair value to play out.

Result: Fair Value of $194.75 (UNDERVALUED)

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

However, that upside relies on housing starts stabilising and steel costs easing, as prolonged weakness or persistent input inflation could quickly compress those projected margins.

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

Build Your Own Simpson Manufacturing Narrative

If the assumptions in this narrative do not quite match your view, you can dive into the numbers yourself and build a custom storyline in minutes, Do it your way.

A great starting point for your Simpson Manufacturing research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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