Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$50.39M
• Dividend Yield: N/A
• Average Volume (3M): 54.68K
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.85
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.14 ▲(0.71% Upside)

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

Cash Flow Management

Strong cash generation capabilities indicate robust liquidity and operational efficiency, supporting long-term business sustainability and investment capacity.

Revenue Growth

Consistent revenue growth, though modest, suggests a positive trajectory in market reach and product adoption, enhancing long-term business prospects.

Cost Management Efficiency

A healthy gross profit margin reflects effective cost management, which can sustain profitability and competitive positioning over time.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Low Profitability

Limited profitability margins suggest challenges in converting revenue into profit, which could hinder long-term growth and shareholder returns.

Low Return on Equity

Low ROE indicates limited returns for shareholders, which may affect investor confidence and the company's ability to attract capital for future growth.

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. Overall, the company is on a growth path but needs to address profitability and leverage issues to enhance financial health.

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: Negative
• Last Price: 0.14
• 50DMA: Negative
• 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 Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below 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 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, 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$104.30M	17.17	17.24%	8.17%	18.74%	0.86%
SHM	67 Neutral	AU$61.15M	9.38	17.58%	6.07%	-13.36%	14.09%
ABY	66 Neutral	AU$113.22M	148.77	1.90%	―	1.58%	-65.09%
DSK	66 Neutral	AU$47.32M	10.75	12.71%	9.21%	8.39%	3.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FFI	57 Neutral	AU$60.92M	7.42	12.79%	4.90%	10.17%	286.45%
SIO	52 Neutral	AU$50.39M	50.00	7.35%	―	0.33%	-75.00%

Simonds Group Ltd. Corporate Events

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.

Simonds Group Releases 2025 Corporate Governance Statement

Simonds Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is now available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting their commitment to transparency and accountability in management and oversight. This announcement reinforces Simonds Group’s dedication to maintaining high standards of corporate governance, which is crucial for its reputation and trust with stakeholders.

Simonds Group Ltd Celebrates 75 Years of Innovation in Home Building

Simonds Group Ltd, a leading Australian home builder, celebrates its 75th anniversary with a focus on innovation and future growth. The company emphasizes its commitment to leveraging technology and design to continue its legacy of building homes, positioning itself as a forward-thinking leader in the industry.

Simonds Group Announces 2025 Annual General Meeting Agenda

Simonds Group Limited has announced its 2025 Annual General Meeting, scheduled for November 12, 2025, in Melbourne. The agenda includes reviewing financial statements, voting on the remuneration report, re-electing Mark Simonds as a director, electing the Hon. Michael Sukkar as a director, approving a 10% placement facility, and considering a conditional spill resolution. Shareholders are encouraged to submit questions in advance and appoint proxies if unable to attend. The meeting will address key corporate governance and strategic decisions impacting the company’s future operations.

Simonds Group Sets Date for 2025 Annual General Meeting

Simonds Group Limited has announced the date for its 2025 Annual General Meeting, which is scheduled to take place on November 12, 2025. Shareholders will receive detailed information about the meeting in a forthcoming notice. Additionally, individuals interested in nominating for a director position must submit their applications by September 22, 2025, in accordance with the company’s constitution.