Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$53.99M
• Dividend Yield: N/A
• Average Volume (3M): 12.52K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.26
• Revenue Growth: -4.83%
• EPS Growth: N/A
• Country: AU
• Employees: 650
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Residential Construction
• EPS (TTM): <0.01
• Shares Outstanding: 359,906,460
• 10 Day Avg. Volume: 870
• 30 Day Avg. Volume: 12,519
• 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: ―

Simonds Group Ltd. faces significant challenges, particularly with cash flow generation and maintaining revenue growth, which are reflected in its financial performance score. The technical analysis suggests bearish sentiment, adding to the cautious outlook. The valuation is moderate, but the absence of a dividend yield limits its attractiveness. Overall, the stock shows potential for recovery but carries significant risks, particularly in financial stability and market sentiment.

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 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
	EBIT
16.65M	6.85M	-27.33M	-14.51M	7.64M	12.37M
	EBITDA
17.42M	23.29M	-11.39M	3.69M	27.52M	31.47M
	Net Income Common Stockholders
3.43M	4.03M	-23.33M	-9.67M	4.69M	5.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.60M	1.65M	15.10M	11.13M	22.78M	28.28M
	Total Assets
149.78M	158.29M	160.53M	183.91M	173.64M	166.26M
	Total Debt
17.96M	16.38M	21.46M	27.01M	22.41M	22.93M
	Net Debt
8.36M	14.73M	6.35M	15.87M	-375.00K	-5.35M
	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: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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
JHX	68 Neutral	$15.45B	24.57	21.09%	―	2.20%	-16.72%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
BKW	53 Neutral	$5.32B	―	-1.34%	2.54%	-7.76%	-123.85%
SIO	46 Neutral	AU$53.99M	15.79	17.81%	―	-4.83%	―

Simonds Group Ltd. Corporate Events

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.