Grupo Simec SA De CV (SIM) AI Stock Analysis

• Market Cap: $4.29B
• Dividend Yield: N/A
• Average Volume (3M): 2.39K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.40
• Revenue Growth: -20.47%
• EPS Growth: 109.44%
• Country: US
• Employees: 4,443
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 4.00
• Shares Outstanding: 165,903,080
• 10 Day Avg. Volume: 715
• 30 Day Avg. Volume: 2,389
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

Grupo Simec SA De CV maintains a strong financial position with low leverage and effective cost management. However, declining revenues pose a risk that needs addressing. The stock offers a potentially undervalued investment opportunity but lacks strong technical momentum. Overall, the company's robust financial health and attractive valuation result in a moderately favorable stock score.

Grupo Simec SA De CV Business Overview & Revenue Model

Company Description

Grupo Simec SA De CV (SIM) is a leading manufacturer in the steel industry, primarily operating in the production and distribution of special bar quality (SBQ) steel, structural steel, and other related products. The company serves various sectors, including automotive, construction, and industrial machinery, by providing high-quality steel products that meet stringent specifications and standards.

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 exhibits strong profitability and financial stability with substantial cash flow generation. Despite a decrease in revenue, the company maintains high margins and low leverage, positioning it well in the steel industry. The robust balance sheet and cash flow metrics suggest resilience, although declining revenue and equity warrant close monitoring.

Income Statement

The company demonstrated strong profitability with a gross profit margin of 25.95% and a net profit margin of 29.58% for the TTM period. However, the revenue has shown a declining trend with a significant drop of 18.38% from 2022 to 2023, which is a concern. Despite this, the EBIT and EBITDA margins remain robust at 18.33% and 25.54% respectively, indicating efficient cost management.

Balance Sheet

Grupo Simec maintains an exceptionally strong balance sheet with a very low debt-to-equity ratio of 0.0001, reflecting minimal leverage and high financial stability. The return on equity (ROE) is impressive at 17.33%, and the equity ratio stands at a healthy 76.69%, underscoring solid asset management and shareholder returns. However, the decrease in stockholders' equity over the past year signals a need for caution.

Cash Flow

The company has exhibited substantial growth in free cash flow, with an increase of 171.73% from the previous year, highlighting strong cash generation. The operating cash flow to net income ratio is 0.72, demonstrating effective conversion of income to cash. The free cash flow to net income ratio is 0.46, indicating a good level of cash flow relative to net income, though there is room for improvement.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
33.64B	41.22B	54.16B	55.62B	35.87B	34.17B
	Gross Profit
8.74B	10.63B	14.48B	15.65B	6.66B	4.10B
	EBIT
6.17B	8.38B	12.09B	13.53B	5.19B	2.33B
	EBITDA
8.59B	7.67B	13.21B	14.77B	6.64B	3.43B
	Net Income Common Stockholders
9.95B	5.19B	7.86B	9.44B	2.80B	-1.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.99B	23.58B	21.55B	15.13B	7.73B	7.45B
	Total Assets
48.20B	66.79B	67.63B	57.34B	47.58B	46.05B
	Total Debt
5.94M	5.10M	5.85M	6.20M	6.02M	5.70M
	Net Debt
-6.89B	-23.58B	-21.54B	-15.12B	-7.72B	-7.44B
	Total Liabilities
13.02B	16.98B	19.64B	15.38B	14.40B	13.44B
	Stockholders Equity
35.50B	49.78B	47.96B	41.92B	33.15B	32.58B
Cash Flow		Free Cash Flow
4.55B	1.77B	7.09B	7.32B	2.68B	-228.67M
	Operating Cash Flow
7.12B	4.26B	8.79B	8.39B	3.63B	1.04B
	Investing Cash Flow
-2.40B	-1.28B	-4.14B	-1.01B	-832.67M	-106.69M
	Financing Cash Flow
-108.26M	-242.77M	2.23B	-161.94M	-2.09B	-211.11M

Grupo Simec SA De CV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 26.62 is above the 20-day moving average (MA) of 26.31, above the 50-day MA of 25.82, and below the 200-day MA of 27.37, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 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
GGB	74 Outperform	$5.17B	6.34	8.98%	5.61%	-9.51%	-45.87%
SIM	74 Outperform	$4.29B	6.64	21.66%	―	-20.47%	109.44%
CMC	66 Neutral	$4.59B	67.53	1.78%	1.77%	-7.93%	-89.29%
TX	62 Neutral	$5.20B	73.52	-0.44%	11.70%	0.81%	-108.00%
SID	60 Neutral	$1.81B	―	-17.19%	14.64%	-10.94%	-756.50%
CLF	48 Neutral	$3.63B	―	-10.36%	―	-12.78%	-301.57%
Sector *	47 Neutral	$2.32B	-2.83	-21.67%	3.65%	4.83%	-28.82%