Simpson Manufacturing Co., Inc. (SSD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-40.0%

$120.34

vs $200.44 price

Levered DCF

$160.60

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

6.57

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.52×	21.71×	23.82×	11.4×	22.61×	21.83×	26.74×	19.33×
P/B	3.32×	3.86×	5.02×	2.69×	5.09×	4.16×	4.02×	2.92×
P/S	2.89×	3.13×	3.81×	1.8×	3.83×	3.22×	3.16×	2.32×
EV / EBITDA	12.38×	13.9×	15.31×	7.94×	14.36×	13.27×	15.52×	11.01×
Gross margin	45.9%	46.0%	47.2%	44.5%	48.0%	45.4%	43.2%	44.5%
Operating margin	19.0%	19.3%	21.7%	22.4%	23.4%	19.9%	15.4%	15.6%
Net margin	14.8%	14.4%	16.0%	15.8%	16.9%	14.7%	11.8%	11.7%
Current ratio	3.54×	3.21×	3.63×	3.38×	4.08×	3.88×	4.03×	3.96×
Debt / equity	0.24×	0.27×	0.33×	0.45×	0.04×	0.05×	0.04×	0×
Interest coverage	0×	8.79×	64.54×	37.5×	432.32×	110.35×	86.41×	158.31×
Dividend yield	0.7%	0.7%	0.5%	1.2%	0.7%	1.0%	1.1%	1.6%
Payout ratio	13.8%	14.4%	12.8%	13.1%	15.6%	21.6%	30.0%	31.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.0%	17.8%	21.1%	23.6%	22.5%	19.1%	15.0%	14.8%
Return on invested capital	12.1%	13.2%	15.0%	16.2%	21.9%	18.0%	13.9%	14.2%
Return on assets	11.2%	11.8%	13.1%	13.3%	18.0%	15.2%	12.2%	12.4%
Free cash flow yield	4.4%	2.3%	4.0%	8.9%	1.7%	4.2%	4.7%	5.2%
Earnings yield	5.1%	4.6%	4.2%	8.8%	4.4%	4.6%	3.7%	5.1%
Enterprise value	$6.8B	$7.2B	$8.6B	$4.1B	$5.8B	$3.9B	$3.4B	$2.3B
Net debt / EBITDA	0.19×	0.46×	0.22×	0.64×	-0.64×	-0.79×	-0.89×	-0.75×
Cash conversion cycle (days)	193	195	185	189	226	172	168	197