Sims Limited

ASX:SGM Stock Report

Market Cap: AU$2.1b

Sims Valuation

Is SGM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SGM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGM (A$11.11) is trading below our estimate of fair value (A$12.77)

Significantly Below Fair Value: SGM is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGM?

Other financial metrics that can be useful for relative valuation.

SGM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA45.2x
PEG Ratio29.4x

Price to Sales Ratio vs Peers

How does SGM's PS Ratio compare to its peers?

The above table shows the PS ratio for SGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
CIA Champion Iron
1.6x3.3%AU$2.9b
DRR Deterra Royalties
8.1x-5.1%AU$1.9b
CRN Coronado Global Resources
0.4x3.4%AU$1.5b
VSL Vulcan Steel
1x4.8%AU$1.0b
SGM Sims
0.3x3.5%AU$2.1b

Price-To-Sales vs Peers: SGM is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2.8x).

Price to Earnings Ratio vs Industry

How does SGM's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: SGM is good value based on its Price-To-Sales Ratio (0.3x) compared to the Australian Metals and Mining industry average (68.1x).

Price to Sales Ratio vs Fair Ratio

What is SGM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: SGM is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SGM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$11.11
AU$11.85
+6.7%
9.0%AU$13.50AU$9.77n/a12
Sep ’25AU$10.98
AU$11.85
+7.9%
9.0%AU$13.50AU$9.77n/a12
Aug ’25AU$10.28
AU$11.44
+11.3%
12.2%AU$13.50AU$9.40n/a13
Jul ’25AU$10.20
AU$11.54
+13.1%
12.3%AU$13.50AU$9.40n/a13
Jun ’25AU$10.61
AU$11.70
+10.3%
10.9%AU$13.50AU$9.57n/a13
May ’25AU$11.64
AU$13.42
+15.3%
10.3%AU$16.00AU$11.00n/a13
Apr ’25AU$12.72
AU$13.38
+5.2%
10.2%AU$16.00AU$11.00n/a13
Mar ’25AU$12.38
AU$13.31
+7.5%
10.0%AU$16.00AU$11.00n/a13
Feb ’25AU$14.43
AU$14.46
+0.2%
9.4%AU$17.30AU$12.00n/a12
Jan ’25AU$15.56
AU$14.22
-8.6%
10.1%AU$17.30AU$12.00n/a12
Dec ’24AU$13.62
AU$13.98
+2.7%
8.7%AU$15.80AU$12.00n/a13
Nov ’24AU$12.53
AU$14.07
+12.3%
9.3%AU$16.20AU$12.00n/a13
Oct ’24AU$13.53
AU$14.74
+8.9%
10.1%AU$17.50AU$12.50n/a13
Sep ’24AU$15.29
AU$15.88
+3.9%
9.8%AU$18.75AU$13.14AU$10.9813
Aug ’24AU$15.20
AU$15.36
+1.0%
12.3%AU$18.25AU$11.00AU$10.2813
Jul ’24AU$15.75
AU$15.31
-2.8%
11.2%AU$18.25AU$11.00AU$10.2014
Jun ’24AU$14.22
AU$15.41
+8.4%
11.8%AU$18.25AU$11.00AU$10.6114
May ’24AU$15.60
AU$15.30
-1.9%
12.7%AU$18.25AU$11.00AU$11.6412
Apr ’24AU$15.51
AU$15.22
-1.9%
11.8%AU$18.25AU$11.00AU$12.7213
Mar ’24AU$15.99
AU$14.65
-8.4%
13.2%AU$18.25AU$11.00AU$12.3814
Feb ’24AU$15.41
AU$12.88
-16.4%
16.2%AU$17.00AU$9.60AU$14.4314
Jan ’24AU$13.09
AU$12.27
-6.3%
12.1%AU$15.42AU$9.60AU$15.5613
Dec ’23AU$13.50
AU$12.44
-7.8%
12.0%AU$15.42AU$9.60AU$13.6212
Nov ’23AU$12.56
AU$15.19
+21.0%
15.1%AU$19.40AU$10.80AU$12.5312
Oct ’23AU$13.38
AU$15.56
+16.3%
10.3%AU$19.00AU$12.70AU$13.5312
Sep ’23AU$15.06
AU$15.92
+5.7%
11.1%AU$19.00AU$12.70AU$15.2912

Analyst Forecast: Target price is less than 20% higher than the current share price.

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