ASX:SGM

Stock Analysis Report

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Executive Summary

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, China, Turkey, South Korea, the United States, and internationally. More Details

Rewards

Earnings are forecast to grow 69.62% per year

Risk Analysis

No risks detected for SGM from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SGM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SGM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

SGM

1.2%

AU Metals and Mining

1.3%

AU Market


1 Year Return

2.4%

SGM

13.0%

AU Metals and Mining

-1.0%

AU Market

Return vs Industry: SGM underperformed the Australian Metals and Mining industry which returned 13% over the past year.

Return vs Market: SGM exceeded the Australian Market which returned -1% over the past year.


Shareholder returns

SGMIndustryMarket
7 Day1.3%1.2%1.3%
30 Day22.0%2.1%6.0%
90 Day31.1%-0.8%6.8%
1 Year3.1%2.4%19.1%13.0%2.4%-1.0%
3 Year-15.3%-22.2%53.6%32.3%22.9%7.6%
5 Year86.2%60.4%196.1%138.8%55.7%24.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SGM (A$10.99) is trading above our estimate of fair value (A$9.56)

Significantly Below Fair Value: SGM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGM is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: SGM is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SGM is good value based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Sims forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

69.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: SGM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SGM's is expected to become profitable in the next 3 years.

Revenue vs Market: SGM's revenue (8.2% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: SGM's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGM's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Sims performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGM is currently unprofitable.

Growing Profit Margin: SGM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGM is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% per year.

Accelerating Growth: Unable to compare SGM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SGM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: SGM has a negative Return on Equity (-13.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sims's financial position?


Financial Position Analysis

Short Term Liabilities: SGM's short term assets (A$974.8M) exceed its short term liabilities (A$535.6M).

Long Term Liabilities: SGM's short term assets (A$974.8M) exceed its long term liabilities (A$688.2M).


Debt to Equity History and Analysis

Debt Level: SGM's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: SGM's debt to equity ratio has increased from 0% to 5.9% over the past 5 years.

Debt Coverage: SGM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if SGM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Sims's current dividend yield, its reliability and sustainability?

1.80%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SGM'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 SGM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGM'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?

2.8yrs

Average management tenure


CEO

Alistair Field (56 yo)

3.25yrs

Tenure

AU$4,215,872

Compensation

Mr. Alistair Field, (NHD) Mech Eng, MBA, has been Group Chief Executive Officer and Managing Director at Sims Limited (formerly, Sims Metal Management Limited) since August 3, 2017 and served as its Group ...


CEO Compensation Analysis

Compensation vs Market: Alistair's total compensation ($USD3.07M) is above average for companies of similar size in the Australian market ($USD1.32M).

Compensation vs Earnings: Alistair's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alistair Field
Group CEO3.25yrsAU$4.22m0.11%
A$ 2.4m
Stephen Mikkelsen
Group Chief Financial Officer2.83yrsAU$2.08m0.0023%
A$ 49.2k
Stephen Skurnac
Group Chief Development Officer3.33yrsAU$1.74m0.065%
A$ 1.4m
John Glyde
Chief Operating Officer0.83yrno datano data
Brendan McDonnell
Group Chief Technology Officer2.92yrsno datano data
Angela Catt
Company Secretary & Director of Investor Relations2.83yrsno datano data
Elise Gautier
Group Chief Risk & Compliance Officer2yrsno datano data
Gretchen Johanns
Group General Counsel & Company Secretary2yrsno datano data
Réal Hamilton-Romeo
Director of Corporate Communicationsno datano datano data
M. Baker
Group Chief Human Resources Officer2.83yrsno datano data
Paul Wright
Managing Director of UK Metals5.08yrsno datano data
Joe Payesko
Executive Vice President of North America Metalsno datano datano data

2.8yrs

Average Tenure

Experienced Management: SGM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alistair Field
Group CEO3.25yrsAU$4.22m0.11%
A$ 2.4m
Georgia Nelson
Independent Non-Executive Director6yrsAU$365.42k0.0033%
A$ 71.5k
James Thompson
Independent Non-Executive Director11yrsAU$365.42k0.013%
A$ 277.6k
Geoffrey Brunsdon
Independent Chairman of the Board8.67yrsAU$519.61k0.019%
A$ 417.1k
Deborah O'Toole
Independent Non-Executive Director6yrsAU$267.65k0.0087%
A$ 187.0k
Heather Ridout
Independent Non-Executive Director9.17yrsAU$276.40k0.0025%
A$ 53.5k
Thomas Gorman
Independent Non-Executive Director0.42yrAU$9.65kno data
Hiroyuki Kato
Non-Independent Non-Executive Director2yrsAU$240.27kno data

6.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SGM's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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


Key Information

  • Name: Sims Limited
  • Ticker: SGM
  • Exchange: ASX
  • Founded: 1917
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$2.147b
  • Shares outstanding: 201.02m
  • Website: https://www.simsmm.com

Number of Employees


Location

  • Sims Limited
  • 189 O’Riordan Street
  • Level 9
  • Mascot
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SMUP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
I8MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SGMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
SMSM.YOTCPK (Pink Sheets LLC)SPON ADR EA REP 1 ORD SHS NPVUSUSDNov 1994
I8MADB (Deutsche Boerse AG)SPON ADR EA REP 1 ORD SHS NPVDEEURNov 1994

Biography

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, China, Turkey, South Korea, the United States, and internationally. The company operates throug...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:38
End of Day Share Price2020/11/24 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.