ASX:SIO

Stock Analysis Report

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Executive Summary

Simonds Group Limited, together with its subsidiaries, provides homebuilder and registered training services in Australia. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Simonds Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SIO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SIO's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

SIO

-1.5%

AU Consumer Durables

1.3%

AU Market


1 Year Return

-8.2%

SIO

32.5%

AU Consumer Durables

-1.7%

AU Market

Return vs Industry: SIO underperformed the Australian Consumer Durables industry which returned 32.5% over the past year.

Return vs Market: SIO underperformed the Australian Market which returned -1.7% over the past year.


Shareholder returns

SIOIndustryMarket
7 Day-1.3%-1.5%1.3%
30 Day4.0%-3.6%11.1%
90 Day18.2%-3.7%9.0%
1 Year-8.2%-8.2%34.8%32.5%1.7%-1.7%
3 Year30.0%30.0%24.2%17.6%23.1%7.9%
5 Year-56.7%-56.7%212.7%174.1%57.2%26.0%

Long-Term Price Volatility Vs. Market

How volatile is Simonds Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simonds Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIO (A$0.39) is trading below our estimate of fair value (A$26.94)

Significantly Below Fair Value: SIO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SIO is good value based on its PE Ratio (7.9x) compared to the AU Consumer Durables industry average (21x).

PE vs Market: SIO is good value based on its PE Ratio (7.9x) compared to the Australian market (23x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SIO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SIO is good value based on its PB Ratio (3.3x) compared to the AU Consumer Durables industry average (3.6x).


Next Steps

Future Growth

How is Simonds Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Simonds Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Simonds Group performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIO has high quality earnings.

Growing Profit Margin: SIO's current net profit margins (1.1%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: SIO has become profitable over the past 5 years, growing earnings by 34.9% per year.

Accelerating Growth: SIO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIO had negative earnings growth (-39.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (-1.8%).


Return on Equity

High ROE: SIO's Return on Equity (41.2%) is considered outstanding.


Next Steps

Financial Health

How is Simonds Group's financial position?


Financial Position Analysis

Short Term Liabilities: SIO's short term assets (A$128.0M) exceed its short term liabilities (A$125.8M).

Long Term Liabilities: SIO's short term assets (A$128.0M) exceed its long term liabilities (A$23.2M).


Debt to Equity History and Analysis

Debt Level: SIO's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: SIO's debt to equity ratio has increased from 1.2% to 1.7% over the past 5 years.

Debt Coverage: SIO's debt is well covered by operating cash flow (16987.2%).

Interest Coverage: SIO's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Simonds Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SIO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SIO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SIO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SIO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SIO is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Rhett Simonds

0.67

Tenure

AU$678,190

Compensation

Mr. Rhett Simonds serves as Joint Chief Executive Officer at Simonds Group Limited since February 1, 2020 and serves as its Executive Director since February 1, 2020. Mr. Simonds serves as Manging Director...


CEO Compensation Analysis

Compensation vs Market: Rhett's total compensation ($USD501.36K) is above average for companies of similar size in the Australian market ($USD282.32K).

Compensation vs Earnings: Rhett's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rhett Simonds
Joint CEO0.67yrAU$678.19k0.0098%
A$ 5.5k
Kelvin Ryan
Joint CEO2.67yrsAU$1.54m0.043%
A$ 24.0k
Mick Myers
Chief Financial Officer4.5yrsAU$660.02k0.014%
A$ 7.8k
Mark Simonds
Executive Director3.17yrsAU$102.16k0.039%
A$ 22.1k
Vallence Simonds
Founder & Senior Company Advisorno dataAU$51.76k44.99%
A$ 25.2m
Paul Taylor
Company Secretary & General Counselno datano datano data
Joanne Barber
Chief Human Resources Officer4.33yrsno datano data
Andrew Shea
Chief Executive Officer of Builders Academy Australia4.5yrsAU$25.15kno data

4.3yrs

Average Tenure

Experienced Management: SIO's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rhett Simonds
Joint CEO0.67yrAU$678.19k0.0098%
A$ 5.5k
Kelvin Ryan
Joint CEO2.67yrsAU$1.54m0.043%
A$ 24.0k
Mark Simonds
Executive Director3.17yrsAU$102.16k0.039%
A$ 22.1k
Iain MacGregor Kirkwood
Non-Executive Independent Chairman3.17yrsAU$165.00k0.052%
A$ 29.2k
Neil Kearney
Independent Non-Executive Director3.17yrsAU$116.67k0.063%
A$ 35.1k
Delphine Cassidy
Independent Non-Executive Director3.17yrsAU$116.67k0.021%
A$ 11.7k
Piers O'Brien
Non-Executive Director3.17yrsAU$92.50kno data

3.2yrs

Average Tenure

Experienced Board: SIO's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SIO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Simonds Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simonds Group Limited
  • Ticker: SIO
  • Exchange: ASX
  • Founded: 1949
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: AU$56.098m
  • Shares outstanding: 143.84m
  • Website: https://www.simondsgroup.com.au

Number of Employees


Location

  • Simonds Group Limited
  • 570 St Kilda Road
  • Level 4
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2014
SIOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2014

Biography

Simonds Group Limited, together with its subsidiaries, provides homebuilder and registered training services in Australia. It operates through Residential Construction, Registered Training, and Development...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 07:08
End of Day Share Price2020/11/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.