Simpson Manufacturing: Resilient Through Tariffs And Cost Pressures, But No Margin Of Safety
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Hong Chew Eu1.35K FollowersFollow5ShareSavePlay(20min)CommentsSummarySimpson Manufacturing operates in a mature wood-frame construction sector, with long-term growth likely to track GDP due to modest industry expansion.SSD’s durable competitive advantages—cost advantages, intangible assets, and customer embeddedness—support stable margins despite cyclical end markets and tariff volatility.The 2022 revenue spike was one-off, with post-pandemic normalization and the ETANCO acquisition expanding SSD’s operating footprint and leverage.Peer revenue stability post-tariffs suggests that the sector impacts have been modest, reinforcing SSD’s base-rate growth and margin outlook. Photo travelling people sports/iStock via Getty Images Thrust of my analysis My last analysis of Simpson Manufacturing Co., Inc. (SSD) was written almost 2 years ago, long before Trump’s tariffs. At that juncture, I concluded that despite the company’s strongThis article was written byHong Chew Eu1.35K FollowersFollowBSc (Eng), MBA. Self-taught value investor with 2 decades of investing experience. Blogger at i4value.asia. The blog is on value investing through case studies where I analyze and value listed companies in the ASEAN and US regions. I have an exceptional perspective having served as a Board member of a Malaysia listed company for several decades. I have value investing book "Do you really want to master value investing?" on AmazonAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.