Grupo Simec SA De CV (SIM) AI Stock Analysis

• Market Cap: $5.13B
• Dividend Yield: N/A
• Average Volume (3M): 445.00
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.30
• Revenue Growth: -16.81%
• EPS Growth: -67.68%
• Country: US
• Employees: 4,565
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.16
• Shares Outstanding: 165,903,080
• 10 Day Avg. Volume: 588
• 30 Day Avg. Volume: 445
• PEG Ratio: 0.07
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 27.48
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.37
• Enterprise Value/Ebitda: 0.42
• 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: 73 Outperform
• Price Target: $34.00 ▲(12.96% Upside)

Grupo Simec SA De CV's strong technical indicators and solid financial performance are the primary drivers of its score. However, challenges in cash flow management and a lack of dividend yield slightly temper the overall outlook.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio suggests strong financial stability, providing the company with flexibility to invest in growth opportunities without significant leverage risk.

Profitability

A solid net profit margin indicates efficient cost management and strong pricing power, supporting long-term profitability and competitive positioning.

Regulatory Compliance

Enhancements in SEC compliance demonstrate a commitment to transparency and regulatory standards, potentially boosting investor confidence and reducing regulatory risks.

Negative Factors

Revenue Decline

A significant decline in net sales can indicate challenges in market demand or competitive pressures, potentially impacting future revenue growth and market share.

Cash Flow Challenges

Negative cash flow growth suggests difficulties in converting income to cash, which could constrain the company's ability to finance operations and investments.

Net Income Decline

A sharp decline in net income may reflect operational inefficiencies or adverse market conditions, potentially affecting the company's financial health and investor perception.

Grupo Simec SA De CV Business Overview & Revenue Model

Company Description

Grupo Simec, S.A.B. de C.V. manufactures, processes, and distributes special bar quality (SBQ) steel and steel alloys products in Mexico, the United States, Brazil, Canada, Latin America, and internationally. The company produces I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, cold finished bars, electro-welded wire mesh and mesh panels, and wire rods, as well as semi-finished tube rounds and other semi-finished trade products. Its SBQ steel products are used across a range of engineered end-user applications, including axles, hubs, and crankshafts for automobiles and light trucks, machine tools, and off-highway equipment; and structural steel products are used in the non-residential construction market and other construction applications. The company also exports its steel products to Central and South America, and Europe. The company was founded in 1934 and is headquartered in Guadalajara, Mexico. Grupo Simec, S.A.B. de C.V. is a subsidiary of Industrias CH, S.A.B. de C.V.

How the Company Makes Money

Grupo Simec generates revenue primarily through the sale of its steel products to a wide range of customers in different industries. The company’s key revenue streams include the production and sale of long steel products such as rebar, wire rod, and structural steel, which are used in construction and manufacturing. Additionally, Grupo Simec benefits from partnerships with construction firms and industrial manufacturers, ensuring a steady demand for its products. The company also engages in export activities, supplying steel to international markets, which further contributes to its earnings. Fluctuations in global steel prices and demand in construction and industrial sectors significantly impact its revenue.

Grupo Simec SA De CV Financial Statement Overview

Summary

Grupo Simec SA De CV demonstrates strong profitability with a solid net profit margin and a healthy balance sheet with low leverage. However, challenges in revenue growth and cash flow management could impact future financial flexibility.

Income Statement

Grupo Simec SA De CV shows strong profitability with a solid net profit margin of 19.69% in TTM, despite a revenue decline of 4%. The gross profit margin remains healthy at 24.25%. However, the negative revenue growth rate indicates challenges in maintaining sales momentum.

Balance Sheet

The company maintains a very low debt-to-equity ratio, indicating minimal leverage risk. Return on equity is robust at 10.66%, reflecting efficient use of equity. The equity ratio is strong, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals concerns with a negative free cash flow growth rate of -178.97% in TTM, indicating cash flow challenges. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.21B	33.66B	41.22B	54.16B	55.62B	35.87B
Gross Profit	7.25B	7.62B	10.63B	14.48B	15.65B	6.66B
EBITDA	6.43B	13.61B	7.67B	12.33B	15.10B	6.38B
Net Income	5.36B	10.49B	5.19B	7.86B	9.44B	2.80B
Balance Sheet
Total Assets	71.30B	74.81B	66.79B	67.63B	2.82B	2.29B
Cash, Cash Equivalents and Short-Term Investments	27.50B	29.16B	23.58B	21.55B	739.32M	387.83M
Total Debt	5.69M	6.19M	5.10M	5.85M	302.76K	302.13K
Total Liabilities	11.64B	15.61B	16.98B	19.64B	765.96M	626.30M
Stockholders Equity	59.63B	59.17B	49.78B	47.96B	2.05B	1.66B
Cash Flow
Free Cash Flow	-2.70B	3.42B	1.77B	7.09B	7.32B	2.68B
Operating Cash Flow	75.13M	5.54B	4.26B	8.79B	8.39B	3.63B
Investing Cash Flow	-492.02M	-270.47M	-1.28B	-4.14B	-1.01B	-832.67M
Financing Cash Flow	-413.77M	-130.22M	-242.77M	2.23B	-161.94M	-2.09B

Grupo Simec SA De CV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIM, the sentiment is Negative. The current price of 30.1 is above the 20-day moving average (MA) of 29.34, above the 50-day MA of 29.20, and above the 200-day MA of 28.01, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIM.

Grupo Simec SA De CV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIM	73 Outperform	$5.13B	25.90	5.84%	―	-16.81%	-67.68%
TX	68 Neutral	$8.26B	14.39	4.80%	7.02%	-16.69%	585.38%
CMC	67 Neutral	$8.24B	19.14	10.51%	1.02%	-1.61%	-81.36%
GGB	67 Neutral	$7.69B	15.75	5.21%	2.92%	-2.53%	-36.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CLF	54 Neutral	$7.95B	-4.20	-27.16%	―	-6.76%	-255.94%
SID	54 Neutral	$2.52B	-9.37	-10.50%	―	-5.79%	-5.30%

Grupo Simec SA De CV Corporate Events

Grupo Simec Reports Significant Decline in 2025 Nine-Month Financial Results

Grupo Simec reported a 10% decrease in net sales for the first nine months of 2025 compared to the same period in 2024, primarily due to a 9% reduction in shipments of finished steel products and a 1% decline in average sales price. The company’s net income dropped significantly by 91%, largely attributed to a shift from a net exchange income in 2024 to a net exchange loss in 2025, impacting its financial performance and market positioning.

The most recent analyst rating on (SIM) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Grupo Simec SA De CV stock, see the SIM Stock Forecast page.