Simpson Manufacturing CoSSD +1.48%96 Gross Margin % is 45.22% as of Mar. 2026, which is 1% below its 10-year median of 45.66. GuruFocus rates SSD with a GF Score™ of 96/100 and a GF Value™ of $184.96 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 279 Forest Products companies, Simpson Manufacturing Co ranks better than 85.3% on this metric.
SSD's Gross Margin % is ranked better than 85.3% of 279
companies
in the Forest Products industry
Industry Median: 19.05
vs SSD: 45.49
Simpson Manufacturing Co had a gross margin of 45.22% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Simpson Manufacturing Co was -0.10% per year.
Simpson Manufacturing Co (NYSE:SSD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Simpson Manufacturing Co had a gross margin of 45.22% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Simpson Manufacturing Co Gross Margin % Related Terms
Simpson Manufacturing Co Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Lumber & Wood Production subindustry, Simpson Manufacturing Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Simpson Manufacturing Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Simpson Manufacturing Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Simpson Manufacturing Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Simpson Manufacturing Co (SSD) has a Gross Margin % of 45.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Simpson Manufacturing Co and its competitors. This is near median its historical median of 45.66. Over the past decade, Simpson Manufacturing Co's Gross Margin % has ranged from 43.30 to 47.99. According to the industry distribution chart, Simpson Manufacturing Co ranks #41 out of 279 companies in the Forest Products industry, placing it in the top 14.7%.
Is Simpson Manufacturing Co's Gross Margin % too high?
Simpson Manufacturing Co's current Gross Margin % of 45.22% is near median its 10-year median of 45.66. Over the past 10 years, this metric has ranged from a low of 43.30 to a high of 47.99. The Forest Products industry median Gross Margin % is 19.05. Simpson Manufacturing Co's value of 45.22% is 137.4% above this industry median. Based on the distribution chart, Simpson Manufacturing Co ranks #41 out of 279 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Simpson Manufacturing Co has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Simpson Manufacturing Co's Gross Margin % compare to UFPI and BCC?
According to the Forest Products industry distribution chart, Simpson Manufacturing Co ranks #41 out of 279 companies for Gross Margin %. This places Simpson Manufacturing Co in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.05. Simpson Manufacturing Co's value of 45.22% is 137.4% above this benchmark. Historically, Simpson Manufacturing Co's own Gross Margin % has ranged from 43.30 to 47.99 over the past decade. While the company's 10-year median is 45.66 vs. the industry median of 19.05, Simpson Manufacturing Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simpson Manufacturing Co's current Gross Margin % of 45.22% is 137.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Simpson Manufacturing Co and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simpson Manufacturing Co's current Gross Margin % is 45.22%, which is near median its own 10-year median of 45.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simpson Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Simpson Manufacturing Co (SSD) is currently considered Modestly Overvalued. The stock's GF Value™ is $184.96, compared to a current price of $209.64 — trading 13.3% above its estimated fair value. The current Gross Margin % is 45.22%, which is near median its 10-year median of 45.66 and 137.4% above the Forest Products industry median of 19.05. Simpson Manufacturing Co's overall GF Score™ is 96/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Simpson Manufacturing Co (SSD), the current Gross Margin % is 45.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Simpson Manufacturing Co (SSD) Overvalued in 2026?
Based on GuruFocus' analysis, Simpson Manufacturing Co stock appears to be overvalued.
The current stock price of $209.64 is trading 13.3% above its estimated GF Value™ of $184.96.
GuruFocus considers Simpson Manufacturing Co to be Modestly Overvalued.
Key valuation signals for SSD:
Gross Margin %: 45.22% (near median its 10-year median of 45.66)
GF Value™: $184.96 vs. price of $209.64 (13.3% above fair value)
Industry Position: 137.4% above the Forest Products median (#41 of 279)
No single metric tells the full story. See the SSD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simpson Manufacturing Co Inc designs, manufactures, and markets systems and products to make buildings and structures safe and secure. It produces wood construction products, including connectors, truss plates, fastening systems, fasteners, and shearwalls, as well as concrete construction products such as adhesives, specialty chemicals, mechanical anchors, powder actuated tools, and fiber reinforcing materials. The company serves residential, industrial, commercial, and infrastructure construction, remodeling, and do-it-yourself markets, operating exclusively in the building products industry. It has three regional segments: North America, Europe, and Asia/Pacific. The majority of its revenue comes from wood products.
96GF Score
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