Sims (SGM) AI Stock Analysis

• Market Cap: $2.69B
• Dividend Yield: 0.72%
• Average Volume (3M): 267.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 3.98%
• EPS Growth: 70.79%
• Country: AU
• Employees: 3,887
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.24
• Shares Outstanding: 193,223,480
• 10 Day Avg. Volume: 246,609
• 30 Day Avg. Volume: 267,475
• PEG Ratio: 2.32
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 28.72
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 20.09
• 1Y Price Target: $13.67
• Price Target Upside: -1.70% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 51 Neutral
• Price Target: AU$14.00 ▲(0.65% Upside)

Sims' overall stock score reflects a mixed financial performance with positive revenue growth but ongoing profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics are concerning with a negative P/E ratio. The earnings call provided a positive outlook with strategic improvements, but market volatility and working capital issues remain significant risks.

Positive Factors

Negative Factors

Sims Business Overview & Revenue Model

Company Description

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Investment in SA Recycling, Australia/New Zealand Metals, UK Metals, Global Trading, and Sims Lifecycle Services. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, such as information technology assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, including electrical and electronic equipment. In addition, it provides secondary processing and other services comprising recycling of municipal curbside materials, stevedoring, and other sources of service. Sims Limited was founded in 1917 and is headquartered in Mascot, Australia.

How the Company Makes Money

Sims Limited generates revenue primarily through the collection, processing, and sale of recycled metals and electronics. Key revenue streams include the sale of ferrous and non-ferrous metals recovered from scrap materials, which are processed and sold to manufacturers and other end users. The company also profits from electronics recycling services, where it processes electronic waste to recover valuable materials like copper, aluminum, and precious metals. Additionally, Sims offers municipal recycling services, collaborating with local governments to manage and recycle household waste. Strategic partnerships with manufacturers and municipalities, along with global trading operations, significantly contribute to the company's earnings.

Sims Financial Statement Overview

Summary

Sims shows mixed financial performance with positive revenue growth and improved gross profit margins. However, profitability is challenged by negative net income and EBIT margins. The balance sheet is stable with manageable debt, but negative ROE is concerning. Cash flow generation has declined, posing risks to financial flexibility.

Income Statement

Sims has shown a mixed performance in its income statement. The company experienced a revenue growth rate of 10.87% in the latest year, indicating a positive trend. However, the net profit margin is negative at -0.25%, reflecting challenges in profitability. The gross profit margin improved significantly to 28.67%, suggesting better cost management. Despite these improvements, the negative EBIT margin of -0.12% highlights ongoing operational inefficiencies.

Balance Sheet

The balance sheet of Sims shows moderate stability. The debt-to-equity ratio stands at 0.30, indicating a manageable level of leverage. However, the return on equity is negative at -0.73%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is relatively strong, suggesting a solid capital structure, but the negative ROE remains a concern.

Cash Flow

Sims' cash flow statement reveals some challenges. The free cash flow growth rate is significantly negative at -57.7%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.31, suggesting some ability to convert income into cash. However, the free cash flow to net income ratio of 0.35 highlights potential issues in sustaining cash flow levels.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.51B	7.49B	7.20B	8.08B	9.28B	5.93B
Gross Profit	989.80M	2.15B	1.04B	844.30M	1.15B	852.20M
EBITDA	176.50M	345.10M	282.80M	523.00M	491.90M	230.60M
Net Income	-19.00M	-19.00M	-57.80M	181.10M	599.30M	229.40M
Balance Sheet
Total Assets	4.45B	4.45B	4.90B	4.71B	4.44B	3.68B
Cash, Cash Equivalents and Short-Term Investments	215.60M	215.60M	280.80M	329.80M	267.50M	254.10M
Total Debt	787.70M	787.70M	949.30M	804.80M	701.70M	557.10M
Total Liabilities	1.86B	1.86B	2.34B	2.05B	1.90B	1.56B
Stockholders Equity	2.59B	2.59B	2.56B	2.66B	2.54B	2.12B
Cash Flow
Free Cash Flow	103.00M	103.00M	-12.10M	218.70M	273.10M	800.00K
Operating Cash Flow	297.10M	297.10M	202.50M	449.20M	547.80M	129.40M
Investing Cash Flow	-64.50M	-64.50M	-344.50M	-245.20M	-274.80M	-126.90M
Financing Cash Flow	-142.40M	-142.40M	-75.50M	-155.00M	-259.70M	10.40M

Sims Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGM, the sentiment is Negative. The current price of 13.91 is below the 20-day moving average (MA) of 13.99, below the 50-day MA of 14.92, and below the 200-day MA of 14.36, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 72.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SGM.

Sims Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIS	76 Outperform	267.11M	13.59	0.00%	5.86%	-0.03%	23.78%
CIA	67 Neutral	2.44B	25.29	5.86%	4.80%	-11.16%	-72.19%
MGX	66 Neutral	454.47M	-5.47	0.00%	―	-48.05%	-1394.34%
VSL	61 Neutral	1.06B	69.42	9.27%	1.91%	-12.17%	-61.32%
BSL	54 Neutral	9.88B	118.02	0.79%	2.70%	-4.46%	-89.42%
SGM	51 Neutral	$2.69B	―	0.14%	0.72%	3.98%	70.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sims Corporate Events

Sims Limited Announces Director’s Interest Change

Sims Limited has announced a change in the director’s interest notice for Stephen Mikkelsen, indicating updates in his direct and indirect interests in the company’s securities. This announcement is part of the company’s compliance with ASX listing rules, reflecting transparency in its governance practices, which may impact stakeholders’ perception of the company’s management and oversight.

The most recent analyst rating on (AU:SGM) stock is a Sell with a A$13.00 price target. To see the full list of analyst forecasts on Sims stock, see the AU:SGM Stock Forecast page.