Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$52.19M
• Dividend Yield: N/A
• Average Volume (3M): 54.68K
• Price to Earnings (P/E): 51.8
• Beta (1Y): 0.52
• 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: 144,712
• 30 Day Avg. Volume: 54,683
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.13 ▼(-10.00% Downside)

Simonds Group Ltd. shows strong cash flow management and moderate revenue growth, but faces significant challenges with profitability and high leverage. The technical indicators suggest a bearish trend, and the valuation appears high with a P/E ratio of 50.0 and no dividend yield. These factors contribute to a cautious outlook for the stock.

Positive Factors

Free cash flow growth

Sustained, large free cash flow expansion strengthens long-term financial flexibility. Robust FCF enables capital expenditure, maintenance of operations, debt paydown or targeted acquisitions, and cushions cyclical downturns—supporting durable liquidity and strategic optionality.

Consistent revenue increase

Steady top-line growth reflects ongoing demand and market penetration in the building materials sector. Moderate, repeatable revenue growth supports scale economics, predictable cash inflows and long-term planning, underpinning operational stability across cycles.

Diversified manufacturing and distribution

Integrated manufacturing plus distribution across residential and commercial channels creates multiple revenue streams and supply chain control. This vertical mix improves gross margin resilience, fosters supplier/customer stickiness, and supports competitive positioning over the medium term.

Negative Factors

High leverage

Material reliance on debt reduces financial flexibility and elevates refinancing and interest-rate risk. Over 2–6 months this constrains strategic investment, limits ability to absorb margin shocks, and increases vulnerability to tighter credit conditions or rising rates.

Very low profitability margins

Extremely thin operating and net margins indicate limited pricing power and small buffers for input-cost inflation. Persistently low margins reduce retained earnings for reinvestment, hinder long-term competitiveness, and make returns sensitive to volume or cost variances.

Low return on equity

Subdued ROE signals limited effectiveness of capital allocation and weak shareholder returns relative to alternative uses. Over time this can constrain equity investor support, limit access to new equity capital, and reflect structural profitability or operational efficiency gaps.

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 generates revenue through multiple streams, primarily from the sale of timber and engineered wood products to builders, contractors, and retailers. The company also earns income through the distribution of building materials, which complements its core offerings. Strategic partnerships with suppliers and industry stakeholders enhance its market reach and product availability. Additionally, Simonds Group may benefit from economies of scale in production and distribution, optimizing its cost structure and improving profit margins.

Simonds Group Ltd. Financial Statement Overview

Summary

Simonds Group Ltd. demonstrates moderate revenue growth and strong cash flow generation, but faces challenges in profitability and high leverage. The income statement reflects growth potential, while the balance sheet indicates financial stability concerns due to debt levels. The cash flow statement is a strong point, showcasing effective cash management.

Income Statement

Simonds Group Ltd. shows a modest revenue growth rate of 3.27% in the latest annual report, indicating a positive trajectory. However, the net profit margin is quite low at 0.15%, and the EBIT margin is also minimal at 0.65%, suggesting limited profitability. The gross profit margin of 22.27% is a positive aspect, showing some efficiency in cost management. Overall, the income statement reflects moderate growth but with challenges in profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.90, which is relatively high, indicating a significant reliance on debt financing. The return on equity (ROE) is low at 5.20%, suggesting limited returns for shareholders. The equity ratio stands at 11.41%, reflecting a low proportion of equity financing. The balance sheet reveals a stable but leveraged financial position with potential risks due to high debt levels.

Cash Flow

Simonds Group Ltd. has shown a significant improvement in free cash flow growth at 161.15%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.29, and the free cash flow to net income ratio is 0.95, both suggesting efficient cash flow management. The cash flow statement highlights robust cash flow performance, which is a positive sign for liquidity and operational efficiency.

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: 0.14
• 50DMA: Positive
• 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:SIO, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, 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	75 Outperform	AU$110.25M	17.69	17.24%	7.71%	18.74%	0.86%
SHM	70 Neutral	AU$58.10M	9.62	17.58%	6.10%	-13.36%	14.09%
FFI	69 Neutral	AU$65.61M	7.99	12.79%	4.65%	10.17%	286.45%
ABY	66 Neutral	AU$103.35M	135.80	1.90%	―	1.58%	-65.09%
DSK	66 Neutral	AU$53.86M	12.27	12.71%	9.03%	8.39%	3.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SIO	52 Neutral	AU$52.19M	51.79	7.35%	―	0.33%	-75.00%

Simonds Group Ltd. Corporate Events

Simonds Group Issues 2.9 Million Unquoted Performance Rights Under Employee Incentive Scheme

Simonds Group Limited has notified the market of the issue of 2,893,023 unquoted performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. The new performance rights, issued on 18 December 2025, reflect the company’s ongoing use of equity-based incentives to remunerate and retain staff, potentially aligning employee interests more closely with those of shareholders and affecting future share-based compensation expenses and dilution levels.

The most recent analyst rating on (AU:SIO) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Simonds Group Ltd. stock, see the AU:SIO Stock Forecast page.

Simonds Group Schedules Extraordinary General Meeting for Director Re-elections

Simonds Group Limited has announced an Extraordinary General Meeting scheduled for January 21, 2026, in Melbourne. The meeting will address the re-election of four directors: Mark Simonds, Andrew Bloore, Richard Grellman, and Piers O’Brien. Shareholders are encouraged to submit questions in advance and appoint proxies if they cannot attend. The meeting’s outcome could impact the company’s governance and strategic direction.

The most recent analyst rating on (AU:SIO) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Simonds Group Ltd. stock, see the AU:SIO Stock Forecast page.

Simonds Group to Hold Spill Meeting for Director Elections

Simonds Group Limited has announced a Spill Meeting scheduled for January 21, 2026, following a second strike on its Remuneration Report at the recent Annual General Meeting. This meeting will focus on the election of directors, with nominations for director positions due by November 27, 2025. The outcome of this meeting could significantly impact the company’s governance and stakeholder relations.

Simonds Group Limited Announces AGM Results

Simonds Group Limited, a company listed on the Australian Securities Exchange (ASX:SIO), announced the results of its Annual General Meeting held on November 12, 2025. All resolutions were decided by way of a poll, with key outcomes including the election of the Hon. Michael Sukkar as a director and the approval of a 10% placement facility. The remuneration report resolution was not carried, indicating some shareholder dissent.

Simonds Group Marks 75 Years with Strategic Growth and Financial Turnaround

Simonds Group Limited celebrated its 75th anniversary, marking a year of significant achievements and strategic growth. The company reported a remarkable financial turnaround with an EBITDA of $23.4 million, driven by strategic initiatives and the acquisition of Dennis Family Homes, which expanded its product portfolio and market presence. Despite some one-off costs, the company showed steady financial performance with a 90% increase in normalised NPAT, highlighting its strong position in the industry.