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Grupo Simec SA De CV (SIM)
:SIM
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Grupo Simec SA De CV (SIM) AI Stock Analysis

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SIM

Grupo Simec SA De CV

(SIM)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
$31.00
▲(16.94% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily driven by mixed financial performance: a very strong, low-leverage balance sheet supports stability, but the most recent TTM period shows notably weaker profitability and negative free cash flow. Technically, the stock is trading below key moving averages, adding a modest headwind. Valuation is supportive with a low P/E, but not enough to fully offset the recent cash flow and margin deterioration.
Positive Factors
Strong balance sheet
Extremely low leverage and solid capitalization provide durable financial flexibility, lowering refinancing and solvency risk. This allows the company to fund working-capital swings, cyclical downturns, or targeted capex without immediate external financing, supporting stability over months.
Negative Factors
Negative free cash flow
A sharp swing to negative FCF increases funding pressure even with low debt. Persistent cash absorption from working capital or higher capex can erode liquidity buffers, constrain reinvestment or dividends, and force financing actions if not reversed within a few quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Extremely low leverage and solid capitalization provide durable financial flexibility, lowering refinancing and solvency risk. This allows the company to fund working-capital swings, cyclical downturns, or targeted capex without immediate external financing, supporting stability over months.
Read all positive factors

Grupo Simec SA De CV (SIM) vs. SPDR S&P 500 ETF (SPY)

Grupo Simec SA De CV Business Overview & Revenue Model

Company Description
Grupo Simec, S.A.B. de C.V. is a Mexican enterprise primarily engaged in the fabrication, refinement, and sale of high-quality bar steel (SBQ) and various steel alloy commodities. Its market reach extends throughout Mexico, the United States, Braz...
How the Company Makes Money
Grupo Simec primarily makes money by manufacturing and selling steel products. Its core revenue stream comes from (1) selling long steel products (e.g., merchant bar, reinforcing-type products and other rolled long products, where applicable) to d...

Grupo Simec SA De CV Financial Statement Overview

Summary
Strong balance sheet (very low leverage and solid capitalization) is a clear positive, but it is offset by a sharp deterioration in the most recent TTM period: profitability is materially lower versus recent annual results and free cash flow has turned negative, indicating weaker cash conversion and higher near-term funding pressure despite financial flexibility.
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue53.96B33.66B33.66B41.22B54.16B55.62B
Gross Profit13.57B7.62B7.62B10.63B14.48B15.65B
EBITDA7.80B13.63B13.61B7.67B12.33B15.10B
Net Income4.31B10.49B10.49B5.19B7.86B9.44B
Balance Sheet
Total Assets73.02B71.60B74.81B66.79B67.63B2.82B
Cash, Cash Equivalents and Short-Term Investments27.44B28.59B29.16B23.58B21.55B739.32M
Total Debt5.29M5.43M6.19M5.10M5.85M302.76K
Total Liabilities11.85B12.12B15.61B16.98B19.64B765.96M
Stockholders Equity61.15B59.46B59.17B49.78B47.96B2.05B
Cash Flow
Free Cash Flow-530.08M-1.17B3.42B1.77B7.25B7.32B
Operating Cash Flow1.67B1.62B5.55B4.26B8.95B8.39B
Investing Cash Flow-1.80B-2.09B-277.77M-1.28B-4.14B-1.01B
Financing Cash Flow-112.75M-108.59M-130.23M-242.77M2.23B-161.94M

Grupo Simec SA De CV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.51
Price Trends
50DMA
29.92
Negative
100DMA
30.16
Negative
200DMA
29.89
Negative
Market Momentum
MACD
-0.75
Positive
RSI
36.61
Neutral
STOCH
3.86
Positive
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 26.51 is below the 20-day moving average (MA) of 28.86, below the 50-day MA of 29.92, and below the 200-day MA of 29.89, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 3.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIM.

Grupo Simec SA De CV Risk Analysis

Grupo Simec SA De CV disclosed 44 risk factors in its most recent earnings report. Grupo Simec SA De CV reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Grupo Simec SA De CV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$9.67B16.864.74%4.65%-7.35%
62
Neutral
$7.60B12.8413.65%1.10%15.23%1535.96%
62
Neutral
$9.13B30.872.53%2.65%4.46%-47.34%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
$5.17B6.553.33%7.95%-38.27%
53
Neutral
$6.57B-6.90-15.23%4.03%52.63%
41
Neutral
$1.26B-3.61-12.83%2.16%20.46%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIM
Grupo Simec SA De CV
28.70
1.00
3.61%
CLF
Cleveland-Cliffs
11.52
1.81
18.64%
CMC
Commercial Metals Company
68.72
18.96
38.11%
GGB
Gerdau SA
4.96
2.13
75.14%
SID
Companhia Siderúrgica Nacional
0.99
-0.39
-28.10%
TX
Ternium SA
49.24
20.16
69.30%

Grupo Simec SA De CV Corporate Events

Grupo Simec Delivers Strong First-Half 2026 Earnings on Higher Volumes and FX Relief
Jul 29, 2026
Grupo Simec reported its financial results for the first six-month period ended June 30, 2026, showing a 9% rise in net sales to Ps. 16,186 million, driven by a 16% increase in shipments despite lower average prices. Mexican sales grew 15% while f...
Grupo Simec Delays Filing of 2025 Form 20-F, Points Investors to Existing 6-K Results
May 15, 2026
On May 15, 2026, Grupo Simec, S.A.B. de C.V. announced it will miss the extended deadline to file its Form 20-F annual report for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The company cited pending a...
Grupo Simec Profit Slumps on Currency Hit Despite Stable Margins in 2025 Results
May 1, 2026
Grupo Simec reported audited results for the twelve months ended December 31, 2025 on April 30, 2026, showing a 10% drop in net sales to Ps. 30,291 million, driven by 6% lower shipments and 4% lower average prices versus 2024. Despite this, cost o...
Grupo Simec Posts Higher Profit and Margins in First Quarter 2026
May 1, 2026
For the first quarter ended March 31, 2026, Grupo Simec reported a 3% year-on-year rise in net sales to Ps. 8,032 million, driven by an 11% increase in shipments of finished steel products despite a 7% decline in average selling prices versus the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026