CluenexSimpson Manufacturing SSD
Simpson Manufacturing scores good on business quality (6.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Simpson Manufacturing does
Simpson Manufacturing designs and sells wood and concrete structural connectors, fasteners, and prefabricated shearwalls, primarily supplying commercial and residential contractors through distributor networks. The business generates revenue by providing essential safety components required by building codes for structural integrity.
- What it does best
Simpson dominates structural connector engineering, posting a gross margin of 45.7% that outpaces peers like OC at 26.5%. This advantage stems from rigorous building code specifications and engineer preference, creating heavy switching costs that protect pricing.
- The main risk
A stagnant top-line growth rate of 4.5% leaves the company vulnerable to broader construction downturns or housing market freezes, threatening volume absorption across its manufacturing plants.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 19.8% alongside a top-decile free cash flow margin ranking in the 89th percentile. Profitability remains stable and benefits directly from scale in manufacturing operations.
The moat relies on engineering specifications and building code approvals that lock in contractors and structural engineers. Sitting in the top quartile for gross margin at 76th percentile, rivals struggle to replicate its distribution reach.
Revenue grew 4.5% to $2.4B, showing a sluggish trajectory compared to historical periods. Growth remains constrained by broader industrial demand rather than any company-specific product breakthrough.
Net debt sits at a negligible negative $13 million with a debt-to-equity ratio of 0.2, leaving the balance sheet pristine. Free cash flow surged to $468 million. The financial position is exceptionally strong.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $762K outside pre-planned sales.
Our sealed record on SSD
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Simpson Manufacturing scores good on the Cluenex quality check (6.8 of 10), measured against its own industry. Profitability is fair, moat strong, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 2 sold $762K outside pre-planned sales.
Oct 26, 2026.
See SSD today
- Today's verdict on SSD, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Simpson Manufacturing (SSD)”, https://cluenex.com/stocks/ssd/, data as of Oct 10, 2026.