Simpson Manufacturing Co., Inc.
Thesis
Simpson can grow cumulatively +5.4% through FY24, outperforming the consensus estimate of -5.7%. The company has a strong strategic priority to grow revenues above the rate of US housing starts while maintaining top-quartile ROIC and operating margins. Simpson has consistently achieved these targets, demonstrating its ability to gain market share and maintain pricing power despite economic fluctuations.
Did it work?
The thesis successfully predicted that Simpson would grow cumulatively by +5.4% through FY24, outperforming the consensus estimate of -5.7%. With a price performance of +76.3% over 42 months, the company not only met but significantly exceeded the growth expectations, confirming its strategic priorities and ability to maintain market share and pricing power.