Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$53.99M
• Dividend Yield: N/A
• Average Volume (3M): 48.42K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 0.57
• Revenue Growth: 0.33%
• EPS Growth: -75.00%
• Country: AU
• Employees: 650
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Residential Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 359,906,460
• 10 Day Avg. Volume: 19,677
• 30 Day Avg. Volume: 48,424
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 0

• Rating: 51 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall score reflects the company's financial struggles, particularly in cash flow and revenue stability, despite some improvement in profitability. Technical analysis shows mixed signals, and valuation appears moderate but lacks dividend yield appeal.

Positive Factors

Profitability Improvement

The significant improvement in gross profit margin indicates better cost management and operational efficiency, enhancing the company's ability to generate profits from its core operations.

Debt Management

A manageable debt-to-equity ratio suggests that the company is effectively balancing its debt load, which can support financial stability and provide flexibility for future investments.

Operating Cash Flow Improvement

Improvement in operating cash flow signifies better cash generation from core activities, which is crucial for sustaining operations and funding growth without relying on external financing.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining market share or demand, which can impact long-term growth prospects and competitive positioning in the residential construction industry.

Negative Free Cash Flow

Continued negative free cash flow suggests that the company is not generating sufficient cash to cover its capital expenditures, potentially leading to liquidity issues and limiting investment capacity.

Performance Rights Lapse

The lapse of performance rights may affect employee incentives and capital structure, potentially impacting morale and the company's ability to attract and retain talent, which is vital for long-term success.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	663.48M	722.43M	687.49M	661.59M	664.82M
Gross Profit	138.41M	17.44M	30.93M	50.06M	53.44M
EBITDA	23.29M	-11.39M	3.69M	27.52M	31.47M
Net Income	4.03M	-23.33M	-9.67M	4.69M	5.50M
Balance Sheet
Total Assets	158.29M	160.53M	183.91M	173.64M	166.26M
Cash, Cash Equivalents and Short-Term Investments	1.65M	15.10M	11.13M	22.78M	28.28M
Total Debt	16.38M	21.46M	27.01M	22.41M	22.93M
Total Liabilities	139.79M	146.05M	170.46M	151.39M	149.01M
Stockholders Equity	18.51M	14.48M	13.45M	22.25M	17.25M
Cash Flow
Free Cash Flow	-685.00K	-6.04M	-9.07M	7.53M	40.28M
Operating Cash Flow	2.65M	-4.09M	-2.33M	13.73M	48.92M
Investing Cash Flow	-3.27M	-905.00K	2.74M	-6.17M	-8.57M
Financing Cash Flow	-12.83M	8.97M	-12.06M	-13.06M	-21.78M

Simonds Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIO, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, 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 Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SIO.

Simonds Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSK	70 Outperform	AU$50.75M	11.74	12.71%	8.54%	8.39%	3.21%
ABY	68 Neutral	AU$100.53M	132.10	1.90%	―	1.58%	-65.09%
SHM	67 Neutral	AU$49.08M	7.53	17.58%	7.81%	-13.36%	14.09%
TWD	67 Neutral	AU$99.85M	17.95	17.24%	7.81%	18.74%	0.86%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
FFI	57 Neutral	AU$57.68M	7.33	12.79%	4.87%	10.13%	286.45%
SIO	51 Neutral	AU$53.99M	53.57	7.35%	―	0.33%	-75.00%

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.