AMEX:SIM

Stock Analysis Report

Executive Summary

Grupo Simec, S.A.B. de C.V. manufactures, processes, and distributes special bar quality (SBQ) steel and steel alloys products in the United States, Mexico, Canada, and Brazil.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Grupo Simec. de's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

SIM

3.2%

US Metals and Mining

0.4%

US Market


1 Year Return

3.1%

SIM

-1.4%

US Metals and Mining

11.4%

US Market

Return vs Industry: SIM exceeded the US Metals and Mining industry which returned -1.4% over the past year.

Return vs Market: SIM underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

SIMIndustryMarket
7 Day-4.6%3.2%0.4%
30 Day-1.6%-1.0%0.3%
90 Day8.6%-5.0%-1.2%
1 Year3.1%3.1%1.6%-1.4%13.9%11.4%
3 Year-12.5%-12.5%11.0%5.2%47.2%37.6%
5 Year-29.6%-29.6%1.6%-6.2%62.4%44.6%

Price Volatility Vs. Market

How volatile is Grupo Simec. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grupo Simec. de undervalued compared to its fair value and its price relative to the market?

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIM ($9.21) is trading below our estimate of fair value ($13.73)

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


Price To Earnings Ratio

PE vs Industry: SIM is good value based on its PE Ratio (10.8x) compared to the Metals and Mining industry average (13.7x).

PE vs Market: SIM is good value based on its PE Ratio (10.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SIM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SIM is good value based on its PB Ratio (0.8x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Grupo Simec. de forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIM's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SIM's earnings (6.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: SIM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIM's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SIM's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIM's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Grupo Simec. de performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SIM's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: SIM's earnings growth over the past year (27.8%) exceeds its 5-year average (25% per year).

Earnings vs Industry: SIM earnings growth over the past year (27.8%) exceeded the Metals and Mining industry 26.3%.


Return on Equity

High ROE: SIM's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: SIM's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: SIM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Grupo Simec. de's financial position?


Financial Position Analysis

Short Term Liabilities: SIM's short term assets (MX$29.1B) exceeds its short term liabilities (MX$9.8B)

Long Term Liabilities: SIM's short term assets (29.1B) exceeds its long term liabilities (4.3B)


Debt to Equity History and Analysis

Debt Level: SIM's debt to equity ratio (0.02%) is considered satisfactory

Reducing Debt: SIM's debt to equity ratio has reduced from 2.5% to 0.02% over the past 5 years.

Debt Coverage: SIM's debt is well covered by operating cash flow (42692.7%).

Interest Coverage: SIM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SIM has a high level of physical assets or inventory.

Debt Coverage by Assets: SIM's debt is covered by short term assets (assets are 5019x debt).


Next Steps

Dividend

What is Grupo Simec. de's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Grupo Simec. de's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Luis García Limón (75yo)

37.8yrs

Tenure

0

Mr. Luis García Limón has been the Chief Executive Officer of Grupo Simec S.A.B. de C.V (Alternate Name: Grupo Simec Sa De Cv) since 1982. Mr. García Limón served as a General Director at CSG from 1982 to  ...


Management Age and Tenure

15.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: SIM's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

16.5yrs

Average Tenure

66yo

Average Age

Experienced Board: SIM's board of directors are seasoned and experienced ( 16.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Luis García Limón (75yo)

    CEO & Director

    • Tenure: 37.8yrs
  • Marcos Magaña Rodarte (54yo)

    Chief Sale and Commercialization Officer

    • Tenure: 0yrs
  • Juan José Acosta Macías (59yo)

    Chief Operating Officer

    • Tenure: 15.8yrs
  • Mario Moreno Cortez (51yo)

    Financial Coordinator

    • Tenure: 7.8yrs
  • Lourdes Ivonne Massimi Malo

    Corporate Legal Manager

    • Tenure: 0yrs

Board Members

  • Luis García Limón (75yo)

    CEO & Director

    • Tenure: 37.8yrs
  • Rufino Vigil González (71yo)

    Chairman of the Board

    • Tenure: 18.8yrs
  • Raúl Arturo Pérez Trejo (60yo)

    Independent Director

    • Tenure: 16.5yrs
  • Rodolfo García Gómez De Parada (66yo)

    Independent Director

    • Tenure: 18.5yrs
  • Alfonso Barragán Galindo (66yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Grupo Simec, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Simec, S.A.B. de C.V.
  • Ticker: SIM
  • Exchange: AMEX
  • Founded: 1969
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$1.428b
  • Shares outstanding: 155.09m
  • Website: https://www.gsimec.com.mx

Number of Employees


Location

  • Grupo Simec, S.A.B. de C.V.
  • Calzada Lázaro Cárdenas 601
  • Colonia La Nogalera
  • Guadalajara
  • Jalisco
  • 44440
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIMAMEX (NYSE MKT LLC)YesADR(EACH REP 3'B'ORD NPV)USUSDJul 1993
GSMDB (Deutsche Boerse AG)YesADR(EACH REP 3'B'ORD NPV)DEEURJul 1993
SIMEC BBMV (Bolsa Mexicana de Valores)Series B Common SharesMXMXNSep 1995
4FVDB (Deutsche Boerse AG)Series B Common SharesDEEURSep 1995

Biography

Grupo Simec, S.A.B. de C.V. manufactures, processes, and distributes special bar quality (SBQ) steel and steel alloys products in the United States, Mexico, Canada, and Brazil. The company produces I-beams ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:36
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.