Is Now An Opportune Moment To Examine Simpson Manufacturing Co., Inc. (NYSE:SSD)?

Simpson Manufacturing Co., Inc. (NYSE:SSD), is not the largest company out there, but it saw a decent share price growth of 12% on the NYSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Simpson Manufacturing’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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Is Simpson Manufacturing Still Cheap?

Great news for investors – Simpson Manufacturing is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $274.05, but it is currently trading at US$177 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Simpson Manufacturing’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Check out our latest analysis for Simpson Manufacturing

Can we expect growth from Simpson Manufacturing?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 8.1% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Simpson Manufacturing, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since SSD is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SSD for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SSD. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into Simpson Manufacturing, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Simpson Manufacturing, and understanding it should be part of your investment process.

If you are no longer interested in Simpson Manufacturing, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.