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Simonds Group Ltd. (AU:SIO)
:SIO
Australian Market

Simonds Group Ltd. (SIO) AI Stock Analysis

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AU

Simonds Group Ltd.

(Sydney:SIO)

Rating:46Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is driven primarily by financial performance challenges, particularly in cash flow generation and revenue stability. Technical indicators show bearish momentum, adding to the cautious outlook. Valuation metrics suggest moderate attractiveness.

Simonds Group Ltd. (SIO) vs. iShares MSCI Australia ETF (EWA)

Simonds Group Ltd. Business Overview & Revenue Model

Company DescriptionSimonds Group Ltd. (SIO) is an Australian company primarily engaged in the residential construction industry. The company operates through its core segment, Simonds Homes, which focuses on the design and construction of residential dwellings, including detached housing and townhouse developments. With a strong presence in the Australian market, Simonds Group offers a diverse range of home designs and construction services tailored to meet the needs of various customer segments.
How the Company Makes MoneySimonds Group Ltd. generates revenue primarily through the construction and sale of residential homes. The company makes money by offering a variety of home designs and construction services to homebuyers, with revenue streams including the sale of completed homes, custom-built homes, and project management services. Additionally, Simonds Group may engage in strategic partnerships with land developers, suppliers, and real estate agents to secure favorable terms and enhance its market offerings. The company's earnings are influenced by housing market conditions, consumer demand, and its ability to efficiently manage construction costs and project timelines.

Simonds Group Ltd. Financial Statement Overview

Summary
Simonds Group Ltd. is showing signs of recovery in certain profitability metrics, such as EBIT and net profit margins, but still struggles with consistent revenue growth and cash flow generation. The balance sheet indicates a moderate level of leverage, but reliance on liabilities remains high. Ongoing challenges with free cash flow generation pose risks to financial stability and growth potential. The company needs to focus on stabilizing its revenue while improving operational efficiency to enhance profitability and cash flow.
Income Statement
45
Neutral
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
50
Neutral
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
35
Negative
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue644.56M663.48M722.43M687.49M661.59M664.82M
Gross Profit92.93M138.41M17.44M30.93M50.06M53.44M
EBITDA17.42M23.29M-11.39M3.69M27.52M31.47M
Net Income3.43M4.03M-23.33M-9.67M4.69M5.50M
Balance Sheet
Total Assets149.78M158.29M160.53M183.91M173.64M166.26M
Cash, Cash Equivalents and Short-Term Investments9.60M1.65M15.10M11.13M22.78M28.28M
Total Debt17.96M16.38M21.46M27.01M22.41M22.93M
Total Liabilities132.84M139.79M146.05M170.46M151.39M149.01M
Stockholders Equity16.94M18.51M14.48M13.45M22.25M17.25M
Cash Flow
Free Cash Flow14.35M-685.00K-6.04M-9.07M7.53M40.28M
Operating Cash Flow16.99M2.65M-4.09M-2.33M13.73M48.92M
Investing Cash Flow-4.12M-3.27M-905.00K2.74M-6.17M-8.57M
Financing Cash Flow-14.67M-12.83M8.97M-12.06M-13.06M-21.78M

Simonds Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.17
Negative
200DMA
0.17
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.03
Neutral
STOCH
11.11
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 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUTWD
75
Outperform
AU$100.62M17.2517.29%12.78%7.28%19.51%
AUTWD
75
Outperform
AU$100.62M17.2517.29%12.78%7.28%19.51%
AUSHM
62
Neutral
AU$52.58M9.1114.07%5.80%5.58%6.31%
AUSHM
62
Neutral
AU$52.58M9.1114.07%5.80%5.58%6.31%
61
Neutral
AU$2.84B27.235.13%5.33%2.35%-31.70%
AUDSK
60
Neutral
AU$54.48M9.4613.17%9.14%5.42%-8.87%
AUDSK
60
Neutral
AU$54.48M9.4613.17%9.14%5.42%-8.87%
AUABY
58
Neutral
AU$67.65M37.314.65%5.51%244.64%
AUABY
58
Neutral
AU$67.65M37.314.65%5.51%244.64%
AUFFI
57
Neutral
AU$54.40M24.454.15%4.72%8.87%-37.25%
AUSIO
46
Neutral
AU$50.39M14.7417.81%-4.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIO
Simonds Group Ltd.
0.14
-0.02
-12.50%
AU:DSK
Dusk Group Ltd.
0.85
0.25
41.67%
AU:DSK
Dusk Group Ltd.
0.85
0.25
41.67%
AU:ABY
Adore Beauty Group Ltd.
0.72
-0.12
-14.29%
AU:ABY
Adore Beauty Group Ltd.
0.72
-0.12
-14.29%
AU:FFI
F.F.I. Holdings Ltd.
4.17
0.09
2.21%
AU:TWD
Tamawood Limited
2.60
0.03
1.17%
AU:TWD
Tamawood Limited
2.60
0.03
1.17%
AU:SHM
Shriro Holdings Ltd.
0.68
>-0.01
-1.45%
AU:SHM
Shriro Holdings Ltd.
0.68
>-0.01
-1.45%

Simonds Group Ltd. Corporate Events

Simonds Group Limited Announces Cessation of Performance Rights
Jun 18, 2025

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.

Simonds Group Announces Leadership Restructure Amid Strategic Growth
Apr 11, 2025

Simonds Group Limited has announced significant changes to its leadership team, including the reappointment of Rhett Simonds as CEO while retaining his role as Executive Chair. These changes are part of the company’s strategic plan to capitalize on its strong financial turnaround post-Covid-19 and to integrate the recent acquisition of Dennis Family Homes. The leadership restructuring aims to enhance the company’s operational efficiency and market positioning, with implications for improved stakeholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025