Sims (SMSMY)
OTHER OTC:SMSMY
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Sims
(OTC:SMSMY)
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Rating:64Neutral
Price Target:
$20.50
▲(65.06% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak profitability and pressured cash flow despite solid balance-sheet leverage. Offsetting this, technicals are strong with clear trend support, and the latest earnings call emphasized meaningful operational momentum and disciplined capital actions, though valuation remains challenged due to negative earnings and only a modest dividend yield.
Positive Factors
SLS DDR4 repurposing momentum
SLS's DDR4-driven repurposing is a structural growth vector: higher-value repurposed electronics raise nonferrous content, improve margins and create recurring service flows. The Ireland facility and 1m unit target scale capacity, embedding durable volume and margin optionality across cycles.
Negative Factors
Weak profitability and cash generation
Negative net income and sharply lower FCF growth signal underlying margin and cash conversion issues. Persistent subpar profitability constrains reinvestment, dividend sustainability and reduces ability to self-fund growth or absorb cyclical commodity shocks without additional financing.
Read all positive and negative factors
Positive Factors
Negative Factors
SLS DDR4 repurposing momentum
SLS's DDR4-driven repurposing is a structural growth vector: higher-value repurposed electronics raise nonferrous content, improve margins and create recurring service flows. The Ireland facility and 1m unit target scale capacity, embedding durable volume and margin optionality across cycles.
Read all positive factors
Sims (SMSMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.72B
Dividend Yield1.08%
Average Volume (3M)81.00
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth10.28%
EPS Growth48.95%
CountryUS
Employees3,887
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.30
Shares Outstanding193,232,990
10 Day Avg. Volume0
30 Day Avg. Volume81
Financial Highlights & Ratios
PEG Ratio2.27
Price to Book (P/B)1.12
Price to Sales (P/S)0.39
P/FCF Ratio28.08
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda18.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.77
Revenue Forecast (FY)$5.68B
Sims Business Overview & Revenue Model
Company Description
Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Inves...
How the Company Makes Money
Sims primarily makes money by buying, collecting, and processing scrap metal and then selling the resulting recycled metal commodities to customers such as steel mills, foundries, and manufacturers. Key revenue streams include: (1) Ferrous metal r...
Sims Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive operational and strategic progress story: SLS delivered an exceptional half driven by DDR4 repurposing and strong nonferrous markets materially supporting group revenue and margins; NAM and SA Recycling showed disciplined margin improvement and asset-led growth (including the accretive Tri-Coastal acquisition). Management also demonstrated cost discipline, capital recycling focus and returned capital via an interim dividend. Key risks include ANZ ferrous weakness driven by Chinese exports, working capital pressure from rising nonferrous prices and some statutory volatility from hedging and provisioning, but these were presented as manageable within the group’s strategic actions.Positive Updates
Strong SLS performance driven by DDR4 demand
SLS delivered an exceptionally strong first half driven by DDR4 price and demand dynamics: DDR4 memory prices rose over 450% year-on-year, repurposed units were up ~18%, SLS EBIT margin increased by 7.7 percentage points, and management expects continued strength with a new 120,000 sq ft Ireland facility (opening April) targeting ~1 million repurposed units p.a. over the next 2 years.
Negative Updates
ANZ ferrous market weakness and external headwinds
ANZ experienced subdued ferrous results due to elevated Chinese steel exports and weaker global ferrous pricing; ANZ exposed to export pressures and was impacted by a stronger AUD (from ~US$0.67 to ~US$0.71), which weighed on export parity and translation. Management expects ANZ recovery to depend on longer-term EAF capacity shifts (2027–2028).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong SLS performance driven by DDR4 demand
SLS delivered an exceptionally strong first half driven by DDR4 price and demand dynamics: DDR4 memory prices rose over 450% year-on-year, repurposed units were up ~18%, SLS EBIT margin increased by 7.7 percentage points, and management expects continued strength with a new 120,000 sq ft Ireland facility (opening April) targeting ~1 million repurposed units p.a. over the next 2 years.
Read all positive updates
Company Guidance
Company guidance highlighted SLS momentum with further SLS guidance to be given in March, Ireland expansion (120,000 sq ft) to open early April with meaningful EBIT by June/July and a target of ~1 million repurposed units p.a. over the next 2 years; group sustaining capital expected A$120–140m for FY, interim dividend A$0.14/sh (payable March, fully franked), debt facilities extended 12 months and net assets ~A$2.5bn; Tri‑Coastal adds >350,000 t optionality, bought at <4x post‑synergy EBITDA, combined annual EBITDA ~US$25m and ROIC >20%, and frees >US$100m of Houston land value; markets commentary: LME copper +13.5% YoY, aluminium +9.8% YoY, DDR4 prices +450% YoY, nonferrous now >40% of group revenue (from ~35%), repurposed units +~18%, metal sales revenue flat with volumes -2%, ferrous realized ~A$545/t (from ~A$570) while nonferrous rose ~A$4,100→~A$5,000/t; working capital rose ~A$200m (including A$72m broker deposits), UK receivable provision increased GBP30m, safety TRIFR at historical lows, and management expects continued benefit from U.S. tariffs and a domestic shred premium of ~$50/t.Sims Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.56B | 7.49B | 7.20B | 8.08B | 9.28B | 5.93B |
| Gross Profit | 1.23B | 2.15B | 1.04B | 844.30M | 1.15B | 852.20M |
| EBITDA | 319.94M | 345.10M | 381.00M | 523.00M | 491.90M | 230.60M |
| Net Income | -57.75M | -19.00M | -57.80M | 181.10M | 599.30M | 229.40M |
Balance Sheet | ||||||
| Total Assets | 4.33B | 4.45B | 4.90B | 4.71B | 4.44B | 3.68B |
| Cash, Cash Equivalents and Short-Term Investments | 105.99M | 215.60M | 280.80M | 329.80M | 267.50M | 254.10M |
| Total Debt | 958.15M | 787.70M | 784.40M | 804.80M | 701.70M | 557.10M |
| Total Liabilities | 1.84B | 1.86B | 2.34B | 2.05B | 1.90B | 1.56B |
| Stockholders Equity | 2.50B | 2.59B | 2.56B | 2.66B | 2.54B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | -74.23M | 103.00M | -12.10M | 218.70M | 273.10M | 800.00K |
| Operating Cash Flow | 101.65M | 297.10M | 202.50M | 449.20M | 547.80M | 129.40M |
| Investing Cash Flow | -168.34M | -64.50M | -344.50M | -245.20M | -274.80M | -126.90M |
| Financing Cash Flow | -18.28M | -142.40M | -75.50M | -155.00M | -259.70M | 10.40M |
Sims Technical Analysis
Positive
12.42
Price Trends
15.01
Positive
14.53
Positive
12.27
Positive
Market Momentum
0.92
Negative
81.70
Negative
100.01
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 12.42 is below the 20-day moving average (MA) of 16.31, below the 50-day MA of 15.01, and above the 200-day MA of 12.27, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 81.70 is Negative, neither overbought nor oversold. The STOCH value of 100.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMSMY.
Sims Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $3.72B | -88.66 | -2.29% | 1.08% | 10.28% | 48.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.14B | 17.34 | 10.97% | 1.78% | 5.55% | 11.54% | |
60 Neutral | $5.22B | 33.56 | 4.48% | ― | -5.87% | -81.34% | |
59 Neutral | $817.99M | 282.55 | 0.42% | ― | 13.73% | ― | |
41 Neutral | $1.76B | -5.09 | -12.83% | ― | 2.16% | 20.46% |
* Basic Materials Sector Average
SMSMY
Sims
19.30
9.61
99.10%
SIM
Grupo Simec SA De CV
31.28
3.88
14.16%
SID
Companhia Siderúrgica Nacional
1.35
-0.09
-6.25%
MTUS
Metallus
19.65
6.00
43.96%
WS
Worthington Steel, Inc.
42.19
16.96
67.22%
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.