Simpson Manufacturing CoSSD +0.20%96 Return-on-Tangible-Equity is 31.61% as of Mar. 2026, which is 19% above its 10-year median of 26.51. GuruFocus rates SSD with a GF Scoreâ„¢ of 96/100 and a GF Valueâ„¢ of $184.96 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 280 Forest Products companies, Simpson Manufacturing Co ranks better than 96.43% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Simpson Manufacturing Co's annualized net income for the quarter that ended in Mar. 2026 was $353 Mil. Simpson Manufacturing Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,116 Mil. Therefore, Simpson Manufacturing Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 31.61%.
The historical rank and industry rank for Simpson Manufacturing Co's Return-on-Tangible-Equity or its related term are showing as below:
SSD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.67 Med: 26.51 Max: 51.8
Current: 33.93
During the past 13 years, Simpson Manufacturing Co's highest Return-on-Tangible-Equity was 51.80%. The lowest was 12.67%. And the median was 26.51%.
SSD's Return-on-Tangible-Equity is ranked better than 96.43% of 280
companies
in the Forest Products industry
Industry Median: 2.145
vs SSD: 33.93
Simpson Manufacturing Co (NYSE:SSD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Simpson Manufacturing Co Return-on-Tangible-Equity Related Terms
Simpson Manufacturing Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Simpson Manufacturing Co's Return-on-Tangible-Equity can be seen below:
* 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.
Simpson Manufacturing Co Return-on-Tangible-Equity Chart
SSD vs UFPI, BCC, JCTC: Return-on-Tangible-Equity Comparison
For the Lumber & Wood Production subindustry, Simpson Manufacturing Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Simpson Manufacturing Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Simpson Manufacturing Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.61% mean?
Simpson Manufacturing Co (SSD) has a Return-on-Tangible-Equity of 31.61% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Simpson Manufacturing Co and its competitors. This is 19% above median its historical median of 26.51. Over the past decade, Simpson Manufacturing Co's Return-on-Tangible-Equity has ranged from 12.67 to 51.80. According to the industry distribution chart, Simpson Manufacturing Co ranks #10 out of 280 companies in the Forest Products industry, placing it in the top 3.6%.
Is Simpson Manufacturing Co's Return-on-Tangible-Equity too high?
Simpson Manufacturing Co's current Return-on-Tangible-Equity of 31.61% is 19% above median its 10-year median of 26.51. Over the past 10 years, this metric has ranged from a low of 12.67 to a high of 51.80. The Forest Products industry median Return-on-Tangible-Equity is 2.15. Simpson Manufacturing Co's value of 31.61% is 1373.7% above this industry median. Based on the distribution chart, Simpson Manufacturing Co ranks #10 out of 280 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 Return-on-Tangible-Equity compare to UFPI and BCC?
According to the Forest Products industry distribution chart, Simpson Manufacturing Co ranks #10 out of 280 companies for Return-on-Tangible-Equity. This places Simpson Manufacturing Co in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 2.15. Simpson Manufacturing Co's value of 31.61% is 1373.7% above this benchmark. Historically, Simpson Manufacturing Co's own Return-on-Tangible-Equity has ranged from 12.67 to 51.80 over the past decade. While the company's 10-year median is 26.51 vs. the industry median of 2.15, 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 Return-on-Tangible-Equity for a Forest Products company?
The median Return-on-Tangible-Equity among Forest Products companies is 2.15, based on 280 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simpson Manufacturing Co's current Return-on-Tangible-Equity of 31.61% is 1373.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Simpson Manufacturing Co and its competitors. For the Forest Products industry, the median Return-on-Tangible-Equity is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simpson Manufacturing Co's current Return-on-Tangible-Equity is 31.61%, which is 19% above median its own 10-year median of 26.51. 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 $210.06 — trading 13.6% above its estimated fair value. The current Return-on-Tangible-Equity is 31.61%, which is 19% above median its 10-year median of 26.51 and 1373.7% above the Forest Products industry median of 2.15. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Simpson Manufacturing Co (SSD), the current Return-on-Tangible-Equity is 31.61% 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 $210.06 is trading 13.6% above its estimated GF Value™ of $184.96.
GuruFocus considers Simpson Manufacturing Co to be Modestly Overvalued.
Key valuation signals for SSD:
Return-on-Tangible-Equity: 31.61% (19% above median its 10-year median of 26.51)
GF Value™: $184.96 vs. price of $210.06 (13.6% above fair value)
Industry Position: 1373.7% above the Forest Products median (#10 of 280)
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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