Simonds Group Ltd. (SIO) AI Stock Analysis

• Market Cap: AU$41.39M
• Dividend Yield: N/A
• Average Volume (3M): 54.68K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.60
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.13 ▼(-10.00% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

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

Strong free cash flow generation

A 161% jump in free cash flow and an FCF-to-net-income ratio near 1.0 indicate durable cash-generation capacity. This provides long-term flexibility for debt servicing, reinvestment, or working capital through housing cycles, reducing reliance on external funding.

Healthy gross margin

A gross margin above 22% suggests structural ability to cover direct construction costs and retain pricing power. Over time this margin provides a buffer against input cost inflation and supports operating leverage as volumes rise, improving sustainable profitability if overheads are controlled.

Positive revenue growth trend

Reported revenue growth (~10% in fundamentals) points to expanding top-line demand or market share in residential construction. Sustained revenue growth supports scale benefits, improves absorption of fixed costs, and underpins longer-term margin recovery and investment capacity.

Negative Factors

High leverage

A debt-to-equity near 0.9 and low equity ratio mean the company relies heavily on debt financing. Over the medium term this limits strategic flexibility, raises interest expense sensitivity, and increases refinancing and solvency risk during housing downturns or rising rates.

Very low profitability margins

Extremely thin net and EBIT margins indicate limited ability to convert revenue into lasting shareholder returns. Low profitability constrains internal reinvestment, makes debt burdens harder to absorb, and leaves little cushion against cost shocks or project overruns in construction.

Exposure to cyclical residential construction

Operating in residential construction ties performance to housing cycles, interest rates, and consumer demand. Structurally cyclical exposure amplifies the risks from high leverage and thin margins, making earnings and cash flows more volatile across 2–6 month to multi-quarter horizons.

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

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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.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	710.28M	665.64M	663.48M	722.43M	687.49M	661.59M
Gross Profit	108.55M	148.21M	138.41M	17.44M	30.93M	50.06M
EBITDA	18.48M	6.86M	23.29M	-11.39M	3.69M	27.52M
Net Income	2.18M	1.01M	4.03M	-23.33M	-9.67M	4.69M
Balance Sheet
Total Assets	174.17M	171.17M	158.29M	160.53M	183.91M	173.64M
Cash, Cash Equivalents and Short-Term Investments	20.41M	23.34M	1.65M	15.10M	11.13M	22.78M
Total Debt	49.63M	17.59M	16.38M	21.46M	27.01M	22.41M
Total Liabilities	151.46M	151.63M	139.79M	146.05M	170.46M	151.39M
Stockholders Equity	22.70M	19.54M	18.51M	14.48M	13.45M	22.25M
Cash Flow
Free Cash Flow	34.02M	37.46M	-685.00K	-6.04M	-9.07M	7.53M
Operating Cash Flow	36.96M	39.36M	2.65M	-4.09M	-2.33M	13.73M
Investing Cash Flow	-6.58M	-1.38M	-3.27M	-905.00K	2.74M	-6.17M
Financing Cash Flow	-17.77M	-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: Positive
• RSI: Positive
• 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 0.14, above the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.99 is Positive, 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
TWD	75 Outperform	AU$110.65M	5.57	20.48%	7.71%	18.74%	0.86%
SHM	70 Neutral	AU$57.02M	2.29	22.37%	6.10%	-13.36%	14.09%
FFI	69 Neutral	AU$66.28M	10.09	10.70%	4.65%	10.17%	286.45%
DSK	66 Neutral	AU$49.50M	1.19	13.53%	9.03%	8.39%	3.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ABY	58 Neutral	AU$37.58M	157.84	0.80%	―	1.58%	-65.09%
SIO	52 Neutral	AU$41.39M	3.56	7.35%	―	0.33%	-75.00%

Simonds Group Ltd. Corporate Events

Simonds Group Shareholders Back Board at Extraordinary General Meeting

Simonds Group Limited has confirmed that all resolutions put to shareholders at its extraordinary general meeting on 21 January 2026 were passed by poll, with strong levels of support recorded across the register. The meeting resulted in the successful re-election of directors Mark Simonds, Andrew Bloore, Richard Grellman and Piers O’Brien, reinforcing board continuity and signalling investor backing for the company’s current governance and strategic direction.

The most recent analyst rating on (AU:SIO) stock is a Hold with a A$0.13 price target. To see the full list of analyst forecasts on Simonds Group Ltd. stock, see the AU:SIO Stock Forecast page.

Simonds Group Issues 2.9 Million Unquoted Performance Rights Under Employee Incentive Scheme

Simonds Group Limited has notified the market of the issue of 2,893,023 unquoted performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. The new performance rights, issued on 18 December 2025, reflect the company’s ongoing use of equity-based incentives to remunerate and retain staff, potentially aligning employee interests more closely with those of shareholders and affecting future share-based compensation expenses and dilution levels.

The most recent analyst rating on (AU:SIO) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Simonds Group Ltd. stock, see the AU:SIO Stock Forecast page.

Simonds Group Schedules Extraordinary General Meeting for Director Re-elections

Simonds Group Limited has announced an Extraordinary General Meeting scheduled for January 21, 2026, in Melbourne. The meeting will address the re-election of four directors: Mark Simonds, Andrew Bloore, Richard Grellman, and Piers O’Brien. Shareholders are encouraged to submit questions in advance and appoint proxies if they cannot attend. The meeting’s outcome could impact the company’s governance and strategic direction.

The most recent analyst rating on (AU:SIO) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Simonds Group Ltd. stock, see the AU:SIO Stock Forecast page.