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Grupo Simec S.a. De C.v. (SIM)
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Grupo Simec SA De CV (SIM) AI Stock Analysis

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SIM

Grupo Simec SA De CV

(NYSE MKT:SIM)

Rating:64Neutral
Price Target:
$28.00
▲(5.26% Upside)
The overall stock score is primarily influenced by strong financial performance, particularly profitability and a stable balance sheet. However, technical indicators suggest bearish momentum, and cash flow challenges pose risks to financial flexibility. The valuation is reasonable, but the lack of a dividend yield reduces its appeal to certain investors.

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

Grupo Simec SA De CV Business Overview & Revenue Model

Company DescriptionGrupo 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 MoneyGrupo Simec generates revenue primarily through the sale of its steel products, which include rebar, wire rod, and flat steel products. The company serves a diverse range of industries, including construction, automotive, and machinery manufacturing, allowing it to tap into multiple revenue streams. Additionally, Grupo Simec benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. Key factors contributing to its earnings include fluctuations in steel prices, demand from construction and infrastructure projects, and operational efficiencies achieved through advanced manufacturing technologies.

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 gross profit margin. The balance sheet is stable with low leverage and strong equity ratios. However, challenges in revenue growth and cash flow management are notable concerns.
Income Statement
75
Positive
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
80
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.21B33.66B41.22B54.16B55.62B35.87B
Gross Profit7.81B8.19B10.63B14.48B15.65B6.66B
EBITDA6.92B13.50B7.67B13.21B14.77B6.64B
Net Income6.34B11.48B5.19B7.86B9.44B2.80B
Balance Sheet
Total Assets71.30B74.81B66.79B67.63B57.34B47.58B
Cash, Cash Equivalents and Short-Term Investments27.50B29.16B23.58B21.55B15.13B7.73B
Total Debt5.69M6.19M5.10M5.85M6.20M6.02M
Total Liabilities11.64B15.61B16.98B19.64B15.38B14.40B
Stockholders Equity59.63B59.17B49.78B47.96B41.92B33.15B
Cash Flow
Free Cash Flow-2.70B3.42B1.77B7.09B7.32B2.68B
Operating Cash Flow75.13M5.54B4.26B8.79B8.39B3.63B
Investing Cash Flow-492.02M-270.47M-1.28B-4.14B-1.01B-832.67M
Financing Cash Flow-413.77M-130.22M-242.77M2.23B-161.94M-2.09B

Grupo Simec SA De CV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.60
Price Trends
50DMA
28.09
Negative
100DMA
27.75
Negative
200DMA
27.03
Negative
Market Momentum
MACD
-0.12
Positive
RSI
43.13
Neutral
STOCH
55.07
Neutral
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 26.6 is below the 20-day moving average (MA) of 27.85, below the 50-day MA of 28.09, and below the 200-day MA of 27.03, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 55.07 is Neutral, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$6.51B183.020.88%1.24%-5.64%-93.26%
71
Outperform
$6.02B10.985.77%3.47%-6.55%-37.93%
70
Neutral
$6.63B11.334.89%7.81%-16.83%
64
Neutral
$4.68B12.6610.49%-18.58%-35.32%
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
54
Neutral
$5.20B-25.79%-12.14%-4329.00%
50
Neutral
$1.85B-15.57%15.72%-10.77%-191.87%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIM
Grupo Simec SA De CV
26.60
-1.06
-3.83%
CLF
Cleveland-Cliffs
11.39
0.13
1.15%
CMC
Commercial Metals Company
59.21
10.60
21.81%
GGB
Gerdau SA
3.20
0.00
0.00%
SID
Companhia Siderúrgica Nacional
1.46
-0.53
-26.63%
TX
Ternium SA
34.58
5.59
19.28%
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: Sep 06, 2025