Assessing Simpson Manufacturing (SSD) Valuation After Recent Share Price Strength And Longer Term Returns
Why Simpson Manufacturing is on investors’ radar today
Simpson Manufacturing (SSD) is drawing attention after its recent trading performance, with the stock last closing at $164.72. This has prompted investors to reassess the business against its fundamentals and multi year return profile.
See our latest analysis for Simpson Manufacturing.
The 2.01% one-day share price gain sits against softer recent share price returns over the past quarter, while the 3-year total shareholder return of 73.52% and 5-year total shareholder return of 69.77% keep Simpson Manufacturing on longer term watchlists as investors weigh whether momentum is cooling or simply consolidating.
If Simpson Manufacturing has you looking at construction exposed names, it could be worth widening your search with aerospace and defense stocks as another pocket of the industrials space to investigate.
With Simpson Manufacturing trading at $164.72, a modest intrinsic discount of about 3% and an 18% gap to the average analyst price target, you have to ask: is there real upside here, or is the market already pricing in future growth?
Most Popular Narrative: 15.4% Undervalued
With Simpson Manufacturing last closing at $164.72 against a narrative fair value of $194.75, the current share price sits below that reference point.
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.
Curious how steady revenue expansion, rising margins and a lower future P/E all fit together into that valuation gap? The full narrative spells out the earnings path, share count assumptions and discount rate that underpin this fair value. It also shows how those moving parts interact if growth or profitability shifts.
Result: Fair Value of $194.75 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on housing starts not remaining weak for longer than analysts expect and on input costs, including tariffs on steel and related metals, not squeezing margins further.
Find out about the key risks to this Simpson Manufacturing narrative.
Build Your Own Simpson Manufacturing Narrative
If you see the data differently or prefer to test your own assumptions, you can build a custom Simpson Manufacturing view in a few minutes, starting with 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.
Looking for more investment ideas?
If you stop with just one stock, you risk missing other opportunities that might suit you even better, so take a few minutes and widen your search.
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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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