AMEX:SIM

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Executive Summary

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, and Canada.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

Stable Share Price: SIM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.5%

SIM

2.4%

US Metals and Mining

1.5%

US Market


1 Year Return

-30.2%

SIM

7.3%

US Metals and Mining

6.9%

US Market

Return vs Industry: SIM underperformed the US Metals and Mining industry which returned 3.9% over the past year.

Return vs Market: SIM underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

SIMIndustryMarket
7 Day3.5%2.4%1.5%
30 Day-15.1%9.5%5.9%
90 Day-4.6%26.3%17.9%
1 Year-26.1%-30.2%9.9%7.3%9.2%6.9%
3 Year-41.5%-44.7%9.6%2.6%36.4%27.5%
5 Year-27.3%-31.4%60.0%46.3%64.9%47.0%

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?

0.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SIM ($5.95) is trading above our estimate of fair value ($5.36)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SIM is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.3x).


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?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: SIM's revenue (9.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SIM's revenue (9.4% 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 (6.7%).


Next Steps

Past Performance

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

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIM is currently unprofitable.

Growing Profit Margin: SIM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SIM is unprofitable, but has reduced losses over the past 5 years at a rate of 9.8% per year.

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

Earnings vs Industry: SIM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.3%).


Return on Equity

High ROE: SIM has a negative Return on Equity (-0.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Grupo Simec. de's financial position?


Financial Position Analysis

Short Term Liabilities: SIM's short term assets (MX$28.6B) exceed its short term liabilities (MX$10.7B).

Long Term Liabilities: SIM's short term assets (MX$28.6B) exceed its long term liabilities (MX$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 2.8% to 0.02% over the past 5 years.

Debt Coverage: SIM's debt is well covered by operating cash flow (18127.7%).

Interest Coverage: SIM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


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.


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

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

16.5yrs

Average management tenure


CEO

Luis García Limón (76yo)

38.5yrs

Tenure

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Luis García Limón
CEO & Director38.5yrsno datano data
Mario Moreno Cortez
Financial Coordinator8.5yrsno datano data
Juan José Acosta Macías
Chief Operating Officer16.5yrsno datano data
Lourdes Ivonne Massimi Malo
Corporate Legal Managerno datano datano data
Marcos Magaña Rodarte
Chief Sale and Commercialization Officerno datano datano data

16.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SIM's management team is seasoned and experienced (16.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luis García Limón
CEO & Director38.5yrsno datano data
Rufino Vigil González
Chairman of the Board19.5yrsno datano data
Raúl Arturo Pérez Trejo
Independent Director17.25yrsno datano data
Rodolfo García Gómez De Parada
Independent Director19.25yrsno datano data
Alfonso Barragán Galindo
Independent Director1.5yrsno datano data

17.3yrs

Average Tenure

67yo

Average Age

Experienced Board: SIM's board of directors are seasoned and experienced ( 17.3 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.


Top Shareholders

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$919.247m
  • Shares outstanding: 154.50m
  • Website: https://www.gsimec.com.mx

Number of Employees


Location

  • Grupo Simec, S.A.B. de C.V.
  • Calzada LAzaro CArdenas 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 Mexico, the United States, Brazil, and Canada. The company produces I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, cold finished bars, 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. The company also exports its steel products to Central and South America, and Europe. The company was founded in 1969 and is headquartered in Guadalajara, Mexico. Grupo Simec, S.A.B. de C.V. is a subsidiary of Industrias CH, S.A.B. de C.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 23:57
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.