Grupo Simec SA De CV (SIM) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: N/A
• Average Volume (3M): 312.00
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.39
• Revenue Growth: -15.93%
• EPS Growth: 86.43%
• Country: US
• Employees: 4,565
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 0.42
• Shares Outstanding: 165,903,080
• 10 Day Avg. Volume: 187
• 30 Day Avg. Volume: 312
• PEG Ratio: 0.20
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.79
• 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

• Rating: 78 Outperform
• Price Target: ―

Grupo Simec SA De CV is fundamentally strong with high profitability and a solid financial position. The stock is technically in a bullish phase and appears undervalued, making it an attractive option for investors. However, the decline in revenue and variable cash flow growth are areas to monitor closely.

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 makes money through the manufacturing and sale of steel products. Its primary revenue streams include the sale of special bar quality (SBQ) steel and structural steel to various industries. The company operates multiple production facilities that allow it to produce a wide range of steel products tailored to customer needs. Revenue is also generated through strategic partnerships and contracts with major players in the automotive and construction industries, which ensure a steady demand for its products. Additionally, Grupo Simec's ability to control costs and optimize production processes contributes to its profitability.

Grupo Simec SA De CV Financial Statement Overview

Summary

Grupo Simec SA De CV shows strong financial health with impressive profitability margins and a robust balance sheet. The company has minimal leverage, high equity ratio, and effective utilization of shareholder funds. However, the downward trend in revenue and variable cash flow growth could pose challenges.

Income Statement

Grupo Simec SA De CV has demonstrated stable profitability with a healthy gross profit margin of 24.4% TTM. The net profit margin is exceptionally strong at 33.7% TTM, indicating effective cost management and operational efficiency. However, the revenue has shown a downward trend, with a notable decline of approximately 20% from 2021 to 2023, which could be a concern if it continues.

Balance Sheet

The company's balance sheet is robust, featuring a very low debt-to-equity ratio of 0.0001 TTM, highlighting minimal leverage and substantial equity support. The equity ratio stands high at 83.2%, indicating strong financial stability and asset backing. The return on equity is impressive at 18.3%, showing effective utilization of shareholder funds.

Cash Flow

The cash flow statement presents a mixed picture with consistent free cash flow generation. The operating cash flow to net income ratio is 0.49 TTM, suggesting moderate cash conversion efficiency. Free cash flow to net income is at a reasonable level of 0.30 TTM, though the free cash flow growth rate has been uneven, reflecting potential volatility in cash flow generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.55B	33.66B	41.22B	54.16B	55.62B	35.87B
	Gross Profit
8.18B	8.19B	10.63B	14.48B	15.65B	6.66B
	EBIT
5.80B	5.83B	8.38B	12.09B	13.53B	5.19B
	EBITDA
9.03B	13.50B	7.67B	13.21B	14.77B	6.64B
	Net Income Common Stockholders
11.32B	11.48B	5.19B	7.86B	9.44B	2.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.82B	29.16B	23.58B	21.55B	15.13B	7.73B
	Total Assets
74.39B	74.81B	66.79B	67.63B	57.34B	47.58B
	Total Debt
6.16M	6.19M	5.10M	5.85M	6.20M	6.02M
	Net Debt
-29.81B	-29.15B	-23.58B	-21.54B	-15.12B	-7.72B
	Total Liabilities
12.45B	15.61B	16.98B	19.64B	15.38B	14.40B
	Stockholders Equity
61.91B	59.17B	49.78B	47.96B	41.92B	33.15B
Cash Flow		Free Cash Flow
3.41B	3.42B	1.77B	7.09B	7.32B	2.68B
	Operating Cash Flow
5.60B	5.54B	4.26B	8.79B	8.39B	3.63B
	Investing Cash Flow
-150.36M	-270.47M	-1.28B	-4.14B	-1.01B	-832.67M
	Financing Cash Flow
-161.25M	-130.22M	-242.77M	2.23B	-161.94M	-2.09B

Grupo Simec SA De CV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIM, the sentiment is Positive. The current price of 28.26 is above the 20-day moving average (MA) of 27.60, above the 50-day MA of 26.79, and above the 200-day MA of 26.96, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 39.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	$4.53B	7.19	19.79%	―	-15.93%	86.43%
GGB	73 Outperform	$5.51B	9.80	5.86%	5.02%	-9.33%	-51.03%
CMC	68 Neutral	$5.37B	78.86	1.78%	1.52%	-7.93%	-89.29%
TX	61 Neutral	$5.58B	73.52	-2.75%	10.91%	-10.20%	-152.18%
SID	55 Neutral	$2.13B	―	-16.28%	12.93%	-9.84%	-14783.33%
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%
CLF	48 Neutral	$3.64B	―	-17.57%	―	-15.00%	-423.14%