Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Simpson Manufacturing Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 2.64%.
The industry rank for Simpson Manufacturing Co's 3-Year RORE % or its related term are showing as below:
SSD's 3-Year RORE % is ranked better than 50.75% of 266
companies
in the Forest Products industry
Industry Median: 1.335
vs SSD: 2.64
Simpson Manufacturing Co (NYSE:SSD) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Simpson Manufacturing Co 3-Year RORE % Related Terms
Simpson Manufacturing Co 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Simpson Manufacturing Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Simpson Manufacturing Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Simpson Manufacturing Co (SSD) has a 3-Year RORE % of 2.64 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Simpson Manufacturing Co and its competitors. According to the industry distribution chart, Simpson Manufacturing Co ranks #131 out of 266 companies in the Forest Products industry, placing it in the top 49.2%.
Is Simpson Manufacturing Co's 3-Year RORE % too high?
Simpson Manufacturing Co's current 3-Year RORE % is 2.64. The Forest Products industry median 3-Year RORE % is 1.34. Simpson Manufacturing Co's value of 2.64 is 97.8% above this industry median. Based on the distribution chart, Simpson Manufacturing Co ranks #131 out of 266 companies in the Forest Products industry, which is above the industry midpoint. 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 3-Year RORE % compare to UFPI and BCC?
According to the Forest Products industry distribution chart, Simpson Manufacturing Co ranks #131 out of 266 companies for 3-Year RORE %. This puts Simpson Manufacturing Co in the upper half of its industry. The industry median 3-Year RORE % is 1.34. Simpson Manufacturing Co's value of 2.64 is 97.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Forest Products company?
The median 3-Year RORE % among Forest Products companies is 1.34, based on 266 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simpson Manufacturing Co's current 3-Year RORE % of 2.64 is 97.8% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Simpson Manufacturing Co and its competitors. For the Forest Products industry, the median 3-Year RORE % is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simpson Manufacturing Co's current 3-Year RORE % is 2.64. 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 $208.52 — trading 12.7% above its estimated fair value. The current 3-Year RORE % is 2.64 and 97.8% above the Forest Products industry median of 1.34. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Simpson Manufacturing Co (SSD), the current 3-Year RORE % is 2.64 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 $208.52 is trading 12.7% above its estimated GF Value™ of $184.96.
GuruFocus considers Simpson Manufacturing Co to be Modestly Overvalued.
Key valuation signals for SSD:
3-Year RORE %: 2.64
GF Value™: $184.96 vs. price of $208.52 (12.7% above fair value)
Industry Position: 97.8% above the Forest Products median (#131 of 266)
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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