Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$57.59M
• Dividend Yield: N/A
• Average Volume (3M): 19.46K
• Price to Earnings (P/E): 57.1
• Beta (1Y): 0.77
• Revenue Growth: 0.33%
• EPS Growth: -75.00%
• Country: AU
• Employees: 650
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 359,906,460
• 10 Day Avg. Volume: 660
• 30 Day Avg. Volume: 19,463
• PEG Ratio: -0.57
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Simonds Group Ltd. has strong cash flow management and moderate revenue growth, but faces significant challenges in profitability and high leverage. The technical indicators suggest the stock is nearing overbought conditions, and the high P/E ratio indicates overvaluation. These factors collectively result in a cautious outlook for the stock.

Simonds Group Ltd. Business Overview & Revenue Model

Company Description

Simonds Group Limited, together with its subsidiaries, provides homebuilder services in Australia. It operates through Residential Construction and Development segments. The company designs and constructs residential dwellings; develops and sells residential land; contracts for residential home construction, speculative home building, and the building of display home inventory; and provides payroll and asset services and intellectual property services. It operates display homes across the Australian eastern seaboard and South Australia. The company was formerly known as Simonds Homes Holdings Pty Ltd and changed its name to Simonds Group Limited in September 2014. Simonds Group Limited was founded in 1949 and is based in Melbourne, Australia.

How the Company Makes Money

Simonds Group Ltd. generates revenue primarily through its homebuilding operations, where it designs, constructs, and sells residential properties. The company offers a variety of home designs catering to different market segments, from first-time buyers to family homes. Revenue is earned from the sale of these homes, which is the largest contributor to its earnings. Additionally, Simonds Group may engage in development projects where they acquire land, develop infrastructure, and sell completed properties, further contributing to their income. The company may also benefit from strategic partnerships with suppliers and contractors, which can help optimize costs and improve profitability.

Simonds Group Ltd. Financial Statement Overview

Summary

Simonds Group Ltd. shows improvements in profitability metrics, but struggles with consistent revenue growth and cash flow generation. The moderate leverage is manageable, but the reliance on liabilities poses a risk. Negative free cash flow remains a concern.

Income Statement

Simonds Group Ltd. has experienced significant fluctuations in its financial performance over the years. The most recent year shows a gross profit margin of 20.86%, an improvement from the previous year's 2.41%. The net profit margin stands at 0.61%, a recovery from -3.23% the previous year. Revenue has decreased by 8.15% year-over-year, indicating challenges in maintaining top-line growth. The EBIT margin turned positive at 1.03%, compared to -3.78% in the prior year. While there is an improvement in profitability metrics, the company still faces volatility in its revenue and net income.

Balance Sheet

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 0.88, indicating manageable debt levels relative to equity. Return on equity is relatively low at 21.75%, although it is a significant improvement from negative values in previous years. The equity ratio is 11.69%, suggesting that the company relies heavily on liabilities to finance its assets. While the company has improved its equity position, it still faces significant leverage risk.

Cash Flow

The cash flow statement highlights challenges in generating positive cash flows. Operating cash flow improved to $2.65 million from a negative position the previous year, but free cash flow remains negative at -$0.685 million. The free cash flow growth rate is not calculable due to negative figures in both years. The operating cash flow to net income ratio is 0.66, indicating a reliance on non-operational activities for cash generation. Continued negative free cash flow is a concern for financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	665.64M	665.64M	663.48M	722.43M	687.49M	661.59M
Gross Profit	148.21M	148.21M	138.41M	17.44M	30.93M	50.06M
EBITDA	6.86M	6.86M	23.29M	-11.39M	3.69M	27.52M
Net Income	1.01M	1.01M	4.03M	-23.33M	-9.67M	4.69M
Balance Sheet
Total Assets	171.17M	171.17M	158.29M	160.53M	183.91M	173.64M
Cash, Cash Equivalents and Short-Term Investments	23.34M	23.34M	1.65M	15.10M	11.13M	22.78M
Total Debt	17.59M	17.59M	16.38M	21.46M	27.01M	22.41M
Total Liabilities	151.63M	151.63M	139.79M	146.05M	170.46M	151.39M
Stockholders Equity	19.54M	19.54M	18.51M	14.48M	13.45M	22.25M
Cash Flow
Free Cash Flow	37.46M	37.46M	-685.00K	-6.04M	-9.07M	7.53M
Operating Cash Flow	39.36M	39.36M	2.65M	-4.09M	-2.33M	13.73M
Investing Cash Flow	-1.38M	-1.38M	-3.27M	-905.00K	2.74M	-6.17M
Financing Cash Flow	-16.29M	-16.29M	-12.83M	8.97M	-12.06M	-13.06M

Simonds Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIO, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SIO.

Simonds Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWD	74 Outperform	AU$104.49M	17.62	17.00%	7.17%	18.74%	0.86%
SHM	67 Neutral	AU$55.31M	8.48	―	7.14%	-13.36%	14.09%
DSK	62 Neutral	AU$49.50M	11.24	13.86%	8.81%	8.39%	3.21%
ABY	58 Neutral	AU$101.94M	132.10	1.89%	―	1.58%	-65.09%
FFI	57 Neutral	AU$59.64M	7.42	―	4.80%	10.17%	286.45%
SIO	54 Neutral	AU$57.59M	57.14	7.35%	―	0.33%	-75.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Simonds Group Ltd. Corporate Events

Simonds Group Limited Announces Cessation of Performance Rights

Simonds Group Limited has announced the cessation of 4,009,700 performance rights due to the lapse of conditional rights that were not satisfied. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s performance metrics and future financial strategies.