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): 0.74
• 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$0.12 ▼(-17.14% 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 growth

A 161.15% increase in free cash flow indicates durable cash generation from operations. Strong FCF supports debt servicing, working capital and capex without external funding, improving resilience over 2–6 months and enabling strategic investments or balance sheet repair despite profit pressures.

High cash conversion vs. earnings

A near‑parity FCF/net income ratio (0.95) shows earnings largely convert to cash, indicating quality of earnings and operational efficiency. This reduces reliance on external funding and provides flexibility to manage debt or invest in projects over the medium term.

Healthy gross margin and revenue growth

A 22.27% gross margin signals structural pricing or cost advantages in residential construction. Combined with positive revenue growth (3.27%), this suggests stable demand and room to expand operating leverage if SG&A and overheads are managed, supporting margin recovery over coming quarters.

Negative Factors

High leverage

A debt-to-equity near 0.9 and low equity ratio (11.41%) indicate significant reliance on debt financing. That structural leverage raises interest and refinancing risk, limits capital flexibility, and makes the company vulnerable to cost increases or revenue shocks over the medium term.

Very thin profitability margins

Extremely low net and EBIT margins leave little room to absorb cost inflation or project overruns common in construction. Persistent thin profitability constrains retained earnings, weakens buffer against cyclical downturns, and impedes sustainable reinvestment over several quarters.

Low return on equity

A 5.2% ROE signals modest returns on shareholder capital and potential inefficiency in deploying equity. With high leverage, low ROE suggests returns do not sufficiently compensate financing risk, making it harder to attract capital or justify expansion without operational improvement.

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: 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 0.13, above the 50-day MA of 0.13, 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 30.77 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$111.07M	5.57	20.48%	7.71%	18.74%	0.86%
SHM	70 Neutral	AU$56.30M	2.29	22.37%	6.10%	-13.36%	14.09%
FFI	69 Neutral	AU$64.94M	10.09	10.70%	4.65%	10.17%	286.45%
DSK	66 Neutral	AU$50.13M	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$34.29M	157.84	0.80%	―	1.58%	-65.09%
SIO	52 Neutral	AU$41.39M	3.56	10.33%	―	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.