Grupo Simec SA De CV (SIM) AI Stock Analysis

• Market Cap: $4.74B
• Dividend Yield: N/A
• Average Volume (3M): 1.12K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.35
• Revenue Growth: -15.93%
• EPS Growth: 86.43%
• Country: US
• Employees: 4,565
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 165,903,080
• 10 Day Avg. Volume: 306
• 30 Day Avg. Volume: 1,122
• PEG Ratio: -5.88
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.74
• 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: $29.00
• Price Target Upside: 0.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $33.00 ▲(14.74%Upside)

Grupo Simec SA De CV scores well due to its strong financial health, characterized by high profitability and a robust balance sheet. The technical indicators further support a positive outlook. However, declining revenue and variable cash flow growth present potential risks, which slightly offset the valuation advantage.

Grupo Simec SA De CV Business Overview & Revenue Model

Company Description

Grupo Simec SA De CV (SIM) is a leading Mexican company engaged in the manufacturing and distribution of specialty steel products. It operates primarily in the steel production sector, providing a wide range of products including steel bars, sections, and other processed steel components. The company serves various industries such as construction, automotive, and manufacturing, offering high-quality steel solutions tailored to meet the specific needs of its clients.

How the Company Makes Money

Grupo Simec SA De CV generates revenue through the production and sale of steel products. Its key revenue streams include the sale of steel bars, sections, and other related products to industries such as construction and automotive. The company benefits from its extensive production capabilities and strategically located manufacturing plants, which enable efficient distribution to both domestic and international markets. Additionally, Grupo Simec leverages strategic partnerships and a robust supply chain to optimize production costs and enhance its competitive position in the steel industry.

Grupo Simec SA De CV Financial Statement Overview

Summary

Grupo Simec SA De CV shows strong financial health with high profitability margins and a robust balance sheet. The low debt-to-equity ratio and high equity ratio indicate financial stability. However, revenue decline and variable cash flow growth are concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.66B	41.22B	54.16B	55.62B	35.87B
Gross Profit	8.19B	10.63B	14.48B	15.65B	6.66B
EBITDA	13.50B	7.67B	13.21B	14.77B	6.64B
Net Income	11.48B	5.19B	7.86B	9.44B	2.80B
Balance Sheet
Total Assets	74.81B	66.79B	67.63B	57.34B	47.58B
Cash, Cash Equivalents and Short-Term Investments	29.16B	23.58B	21.55B	15.13B	7.73B
Total Debt	6.19M	5.10M	5.85M	6.20M	6.02M
Total Liabilities	15.61B	16.98B	19.64B	15.38B	14.40B
Stockholders Equity	59.17B	49.78B	47.96B	41.92B	33.15B
Cash Flow
Free Cash Flow	3.42B	1.77B	7.09B	7.32B	2.68B
Operating Cash Flow	5.54B	4.26B	8.79B	8.39B	3.63B
Investing Cash Flow	-270.47M	-1.28B	-4.14B	-1.01B	-832.67M
Financing Cash Flow	-130.22M	-242.77M	2.23B	-161.94M	-2.09B

Grupo Simec SA De CV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIM, the sentiment is Neutral. The current price of 28.76 is above the 20-day moving average (MA) of 28.06, above the 50-day MA of 27.85, and above the 200-day MA of 26.92, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	$4.74B	7.31	19.79%	―	-15.93%	86.43%
CMC	76 Outperform	$5.90B	169.77	0.88%	1.70%	-5.64%	-93.26%
GGB	75 Outperform	$5.62B	10.05	5.86%	5.43%	-9.33%	-51.03%
TX	61 Neutral	$5.96B	73.52	-2.75%	8.65%	-10.20%	-152.18%
CLF	58 Neutral	$4.69B	―	-25.35%	―	-12.14%	-4321.93%
SID	53 Neutral	$1.85B	―	-16.28%	15.82%	-9.84%	-14783.33%
Sector *	44 Neutral	C$963.03M	-6.69	-13.68%	1.90%	17.55%	-32.71%