Grupo Simec. de (NYSEAM:SIM) - Share price, News & Analysis

SIM fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

SIM Stock Overview

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

Rewards

PE ratio (9.8x) is below the US market (15.5x)

Earnings grew by 152% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 4.6% per year for the next 3 years

Grupo Simec. de Competitors

Ternium

NYSE:TX

US$7.9b

Commercial Metals

NYSE:CMC

US$4.4b

ArcelorMittal

ENXTAM:MT

€24.7b

Gerdau

BOVESPA:GGBR4

R$44.9b

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Simec. de
Historical stock prices
Current Share Price	US$29.51
52 Week High	US$36.27
52 Week Low	US$18.88
Beta	0.52
1 Month Change	-5.75%
3 Month Change	9.46%
1 Year Change	37.19%
3 Year Change	227.89%
5 Year Change	190.03%
Change since IPO	112.68%

Shareholder Returns

	SIM	US Metals and Mining	US Market
7D	3.5%	-3.3%	0.7%
1Y	37.2%	-12.8%	-10.8%

Return vs Industry: SIM exceeded the US Metals and Mining industry which returned -9.4% over the past year.

Return vs Market: SIM exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is SIM's price volatile compared to industry and market?
SIM volatility
SIM Average Weekly Movement	7.1%
Metals and Mining Industry Average Movement	10.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SIM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SIM's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	5,369	Rufino Vigil González	https://www.gsimec.com.mx

Grupo Simec, S.A.B. de C.V. manufactures, processes, and distributes special bar quality (SBQ) steel and steel alloys products in Mexico, the United States, Brazil, Canada, and internationally. The company produces I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, cold finished bars, electro-welded wire mesh and panels, and wire rods, as well as semi-finished tube rounds and other semi-finished trade products. Its SBQ steel products are used across a range of engineered end-user applications, including axles, hubs, and crankshafts for automobiles and light trucks, machine tools, and off-highway equipment; and structural steel products are used in the non-residential construction market and other construction applications.

Grupo Simec. de Fundamentals Summary

How do Grupo Simec. de's earnings and revenue compare to its market cap?
SIM fundamental statistics
Market Cap	Mex$91.31b
Earnings (TTM)	Mex$9.29b
Revenue (TTM)	Mex$57.30b

9.8x

P/E Ratio

1.6x

P/S Ratio

Is SIM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIM income statement (TTM)
Revenue	Mex$57.30b
Cost of Revenue	Mex$41.10b
Gross Profit	Mex$16.19b
Other Expenses	Mex$6.90b
Earnings	Mex$9.29b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	60.29
Gross Margin	28.26%
Net Profit Margin	16.22%
Debt/Equity Ratio	0.01%

How did SIM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.83x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SIM ($29.51) is trading above our estimate of fair value ($26.53)

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

Price To Earnings Ratio

PE vs Industry: SIM is poor value based on its PE Ratio (9.8x) compared to the US Metals and Mining industry average (8.1x).

PE vs Market: SIM is good value based on its PE Ratio (9.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: SIM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: SIM is overvalued based on its PB Ratio (2.1x) compared to the US Metals and Mining industry average (1.9x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-4.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIM's earnings are forecast to decline over the next 3 years (-4.6% per year).

Earnings vs Market: SIM's earnings are forecast to decline over the next 3 years (-4.6% per year).

High Growth Earnings: SIM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIM's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: SIM's revenue is forecast to decline over the next 3 years (-1.4% 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 (14.3%).

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SIM has high quality earnings.

Growing Profit Margin: SIM's current net profit margins (16.2%) are higher than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: SIM's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: SIM's earnings growth over the past year (152%) exceeds its 5-year average (33.4% per year).

Earnings vs Industry: SIM earnings growth over the past year (152%) exceeded the Metals and Mining industry 98.2%.

Return on Equity

High ROE: SIM's Return on Equity (20.9%) is considered high.

Financial Health

How is Grupo Simec. de's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SIM's short term assets (MX$40.3B) exceed its short term liabilities (MX$11.5B).

Long Term Liabilities: SIM's short term assets (MX$40.3B) exceed its long term liabilities (MX$4.4B).

Debt to Equity History and Analysis

Debt Level: SIM has more cash than its total debt.

Reducing Debt: SIM's debt to equity ratio has reduced from 2.8% to 0.01% over the past 5 years.

Debt Coverage: SIM's debt is well covered by operating cash flow (144738.5%).

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

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SIM'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 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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SIM has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

19.1yrs

Average board tenure

CEO

Rufino Vigil González (73 yo)

no data

Tenure

Engineer Rufino Vigil González has been the Chairman at Group Simec S.A. de C.V. since 2001 and also serves as its Director since April 2, 2001. He serves as Chief Executive Officer of Grupo Simec, S.A.B....

Board Members

Experienced Board: SIM's board of directors are seasoned and experienced ( 19.1 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31