Simpson Manufacturing Co., Inc. (SSD): A Bull Case Theory

We came across a bullish thesis on Simpson Manufacturing Co., Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on SSD. Simpson Manufacturing Co., Inc.'s share was trading at $162.12 as of July 22^nd. SSD’s trailing P/E was 21.11 according to Yahoo Finance.

Simpson Manufacturing Co., Inc., through its flagship Simpson Strong-Tie brand, is the clear leader in North America’s engineered structural connectors market, providing mission-critical products that ensure building safety and integrity. Its dominance is underpinned by an exceptional competitive moat built on decades of innovation, unmatched service, and a brand synonymous with trust and reliability. The company’s connectors are frequently specified directly into building codes, making them indispensable for meeting stringent safety standards for seismic activity, high winds, and structural load.

This code-based specification creates significant switching costs, as using alternative products would require expensive and time-consuming engineering re-evaluations, effectively locking in Simpson’s position. Its extensive distribution network, spanning home centers, lumberyards, and contractor suppliers, guarantees near-ubiquitous availability, while best-in-class technical and field support further solidifies its reputation as an essential partner rather than a mere supplier.

Secular demand drivers, including persistent housing construction needs, the stable repair-and-remodel market, and increasingly stringent building codes driven by extreme weather and resilience concerns, provide a long-term growth tailwind. Simpson’s disciplined management team has demonstrated operational excellence and effective capital allocation, consistently generating robust free cash flow to fund innovation while returning capital via dividends and buybacks.

As building safety becomes ever more critical, Simpson’s entrenched position, code-mandated product usage, and comprehensive service model form an enduring competitive fortress. This positions the company to capitalize on rising safety and resiliency requirements, delivering steady growth and shareholder value over time, making Simpson a category-defining enterprise and an essential component of the construction safety ecosystem.

Previously, we covered a bullish thesis on Apollo Global Management, Inc., the same author in July 2025, which highlighted the firm’s countercyclical resilience, leadership in private credit, and ability to deploy capital at attractive returns during dislocations. The company’s stock price has appreciated by approximately 4.81% since our coverage, as the thesis played out. Stock Analysis Compilation shares an identical approach but emphasizes Simpson Manufacturing’s entrenched dominance and secular growth tailwinds.

Simpson Manufacturing Co., Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held SSD at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the potential of SSD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.