Sims (SMSMY) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 1.57%
• Average Volume (3M): 187.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 2.78%
• EPS Growth: 72.91%
• Country: US
• Employees: 3,887
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.16
• Shares Outstanding: 193,226,000
• 10 Day Avg. Volume: 245
• 30 Day Avg. Volume: 187
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 8.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $9.50 ▲(3.83% Upside)

Sims' overall stock score reflects a challenging financial landscape with some positive signs of revenue growth and strategic improvements. Technical indicators are neutral, and valuation metrics are weak due to profitability issues. The earnings call provided a positive outlook with strategic shifts, but market challenges persist.

Sims Business Overview & Revenue Model

Company Description

Sims Limited (SMSMY) is a global leader in metal and electronics recycling, providing sustainable solutions for the recovery and recycling of metals and electronics across the world. The company operates in multiple sectors including ferrous and non-ferrous metal recycling, electronics recycling, and municipal recycling. With a strong focus on environmental sustainability, Sims Limited offers services that include the collection, processing, and trading of recyclable materials, aiming to minimize waste and maximize resource recovery.

How the Company Makes Money

Sims Limited generates revenue primarily through the collection, processing, and sale of recycled materials. The company collects scrap metals and end-of-life electronics, processes these materials to extract valuable metals, and sells the processed metals to manufacturers and other buyers. Key revenue streams include ferrous and non-ferrous metal recycling operations, electronics recycling, and resale of recovered materials. The company also benefits from strategic partnerships with industrial manufacturers and governments to source recyclable materials and manage waste effectively. Market conditions, such as metal prices and demand for recycled materials, play a significant role in influencing Sims Limited's earnings.

Sims Financial Statement Overview

Summary

Sims has shown revenue growth but struggles with profitability, as indicated by negative net profit margins and returns on equity. The balance sheet is stable with manageable debt, but cash flow management needs improvement.

Income Statement

Sims has shown a mixed performance in its income statement. The revenue growth rate of 10.87% in the latest period is a positive sign, indicating recovery from previous declines. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.25% and an EBIT margin of 1.20%. The gross profit margin is relatively healthy at 28.67%, but the negative net income highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio of 0.30 indicates a manageable level of leverage, which is a positive aspect. However, the return on equity is negative at -0.73%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 58.19%, showing a solid equity base relative to total assets, which provides some financial cushion.

Cash Flow

Cash flow analysis reveals some concerns, particularly with a significant decline in free cash flow growth at -57.7%. The operating cash flow to net income ratio of 0.31 indicates that cash generation from operations is not fully covering net losses. The free cash flow to net income ratio is 0.35, which shows some ability to generate cash relative to net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.76B	7.49B	7.20B	8.08B	9.28B	5.93B
Gross Profit	906.40M	2.15B	1.04B	844.30M	1.15B	852.20M
EBITDA	281.70M	345.10M	381.00M	523.00M	491.90M	230.60M
Net Income	-114.20M	-19.00M	-57.80M	181.10M	599.30M	229.40M
Balance Sheet
Total Assets	4.47B	4.45B	4.90B	4.71B	4.44B	3.68B
Cash, Cash Equivalents and Short-Term Investments	242.90M	215.60M	280.80M	329.80M	267.50M	254.10M
Total Debt	593.40M	787.70M	949.30M	804.80M	701.70M	557.10M
Total Liabilities	1.73B	1.86B	2.34B	2.05B	1.90B	1.56B
Stockholders Equity	2.74B	2.59B	2.56B	2.66B	2.54B	2.12B
Cash Flow
Free Cash Flow	243.50M	103.00M	-12.10M	218.70M	273.10M	800.00K
Operating Cash Flow	448.50M	297.10M	202.50M	449.20M	547.80M	129.40M
Investing Cash Flow	-83.60M	-64.50M	-344.50M	-245.20M	-274.80M	-126.90M
Financing Cash Flow	-377.70M	-142.40M	-75.50M	-155.00M	-259.70M	10.40M

Sims Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSMY, the sentiment is Positive. The current price of 9.15 is above the 20-day moving average (MA) of 9.02, above the 50-day MA of 9.08, and below the 200-day MA of 9.27, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 99.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMSMY.

Sims Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WS	―	$1.60B	13.35	11.22%	2.04%	-6.75%	-5.18%
ZEUS	―	$328.65M	23.96	2.50%	2.17%	-9.21%	-60.42%
SIM	―	$4.60B	13.12	10.49%	―	-18.58%	-35.32%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SMSMY	―	$1.85B	-176.57	0.14%	1.57%	2.78%	72.91%
MTUS	―	$749.11M	-33.73	-3.13%	―	-18.93%	-141.88%
SID	―	$2.12B	-5.60	-15.57%	13.74%	-10.77%	-192.16%

Sims Corporate Events

Sims Ltd Reports Strong Turnaround Amid Challenges

During the recent earnings call, Sims Ltd Sponsored Adr conveyed a positive sentiment, highlighting a remarkable turnaround in financial performance. The company successfully navigated challenging market conditions, particularly in the ferrous segment, through strategic shifts and cost reductions. Notably, strong performance in nonferrous trading and growth in the SLS business were key positives, although weather disruptions and credit issues in the U.K. posed significant challenges.

Sims Ltd Reports Revenue Growth Amid Market Challenges

Sims Ltd Sponsored Adr is an international company specializing in the recycling of ferrous and non-ferrous metals, as well as IT asset and electronic equipment recycling, operating primarily in the metal recycling industry. In its latest earnings report for the fiscal year ending June 30, 2025, Sims Limited reported a 4.1% increase in sales revenue from continuing operations, reaching A$7,494.0 million. Despite a challenging market environment, the company managed to reduce its net loss significantly by 67.1% to A$19.0 million. The company declared a final dividend of 13.0 cents per share, fully franked, reflecting its commitment to returning value to shareholders. Key financial highlights include a 48.1% increase in underlying EBITDA to A$430.0 million and a 198.0% rise in underlying EBIT to A$174.9 million. The company also reported a substantial improvement in free cash flow, which turned positive at A$106.8 million, compared to a negative A$41.7 million in the previous year. Looking ahead, Sims Limited remains optimistic about its long-term prospects, driven by growing demand for recycled materials and strategic investments in its operations. The company expects continued strength in non-ferrous markets and benefits from tariffs supporting domestic demand in the US, although challenges from Chinese steel exports persist.