Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$50.39M
• Dividend Yield: N/A
• Average Volume (3M): 9.16K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.29
• Revenue Growth: -4.83%
• EPS Growth: N/A
• Country: AU
• Employees: 650
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Residential Construction
• EPS (TTM): <0.01
• Shares Outstanding: 359,906,460
• 10 Day Avg. Volume: 5,976
• 30 Day Avg. Volume: 9,157
• PEG Ratio: -2.60
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.64
• 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

• Rating: 46 Neutral
• 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. Business Overview & Revenue Model

Company Description

Simonds 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 Money

Simonds 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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	644.56M	663.48M	722.43M	687.49M	661.59M	664.82M
Gross Profit	92.93M	138.41M	17.44M	30.93M	50.06M	53.44M
EBITDA	17.42M	23.29M	-11.39M	3.69M	27.52M	31.47M
Net Income	3.43M	4.03M	-23.33M	-9.67M	4.69M	5.50M
Balance Sheet
Total Assets	149.78M	158.29M	160.53M	183.91M	173.64M	166.26M
Cash, Cash Equivalents and Short-Term Investments	9.60M	1.65M	15.10M	11.13M	22.78M	28.28M
Total Debt	17.96M	16.38M	21.46M	27.01M	22.41M	22.93M
Total Liabilities	132.84M	139.79M	146.05M	170.46M	151.39M	149.01M
Stockholders Equity	16.94M	18.51M	14.48M	13.45M	22.25M	17.25M
Cash Flow
Free Cash Flow	14.35M	-685.00K	-6.04M	-9.07M	7.53M	40.28M
Operating Cash Flow	16.99M	2.65M	-4.09M	-2.33M	13.73M	48.92M
Investing Cash Flow	-4.12M	-3.27M	-905.00K	2.74M	-6.17M	-8.57M
Financing Cash Flow	-14.67M	-12.83M	8.97M	-12.06M	-13.06M	-21.78M

Simonds Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 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 0.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWD	75 Outperform	AU$100.62M	17.25	17.29%	12.78%	7.28%	19.51%
TWD	75 Outperform	AU$100.62M	17.25	17.29%	12.78%	7.28%	19.51%
SHM	62 Neutral	AU$52.58M	9.11	14.07%	5.80%	5.58%	6.31%
SHM	62 Neutral	AU$52.58M	9.11	14.07%	5.80%	5.58%	6.31%
Sector *	61 Neutral	AU$2.84B	27.23	5.13%	5.33%	2.35%	-31.70%
DSK	60 Neutral	AU$54.48M	9.46	13.17%	9.14%	5.42%	-8.87%
DSK	60 Neutral	AU$54.48M	9.46	13.17%	9.14%	5.42%	-8.87%
ABY	58 Neutral	AU$67.65M	37.31	4.65%	―	5.51%	244.64%
ABY	58 Neutral	AU$67.65M	37.31	4.65%	―	5.51%	244.64%
FFI	57 Neutral	AU$54.40M	24.45	4.15%	4.72%	8.87%	-37.25%
SIO	46 Neutral	AU$50.39M	14.74	17.81%	―	-4.83%	―

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.

Simonds Group Announces Leadership Restructure Amid Strategic Growth

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.