Want to see AU:SGM full AI Analyst Report?
Top Page
Sims
(Sydney:SGM)
Select Model
Select Model
Rating:59Neutral
Price Target:
AU$26.00
▲(7.62% Upside)
Action:Reiterated
Date:08/19/26
The score is anchored by improving financial performance and a solid balance sheet, supported by a generally positive earnings call with better profitability, ROIC, and cash conversion. These positives are partially offset by weak technical trend signals and valuation uncertainty from a negative P/E and only a modest dividend yield.
Positive Factors
Earnings recovery
The return to positive EBIT and net income, alongside renewed revenue growth, indicates meaningful operational recovery rather than continued deterioration. If revenue remains resilient, improved earnings provide greater capacity to fund investment, strengthen operations, and support shareholder returns.
Negative Factors
Cyclical earnings volatility
Thin margins and a history of sharp profit swings make earnings less predictable across the cycle. Limited operating cushion means changes in selling prices, volumes, or costs can materially affect returns, making sustained profitability harder to establish even after the 2026 recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery
The return to positive EBIT and net income, alongside renewed revenue growth, indicates meaningful operational recovery rather than continued deterioration. If revenue remains resilient, improved earnings provide greater capacity to fund investment, strengthen operations, and support shareholder returns.
Read all positive factors
Sims (SGM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.82B
Dividend Yield1.07%
Average Volume (3M)783.24K
Price to Earnings (P/E)19.7
Beta (1Y)1.40
Revenue Growth6.60%
EPS GrowthN/A
CountryAU
Employees4,015
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.27
Shares Outstanding193,232,990
10 Day Avg. Volume870,217
30 Day Avg. Volume783,240
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.00
Price to Sales (P/S)0.66
P/FCF Ratio24.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$27.41Price Target Upside13.44% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)1.87
Revenue Forecast (FY)AU$8.63B
Sims Business Overview & Revenue Model
Company Description
Sims Limited specializes in the global acquisition, processing, and sale of both ferrous (iron-based) and non-ferrous recycled metals. Its extensive operations span across key regions including Australia, the United States, China, Turkey, Banglade...
How the Company Makes Money
Sims makes money primarily by buying scrap and end-of-life materials, processing them to meet customer specifications, and selling the resulting recycled commodities and services. Key revenue streams include: (1) Ferrous scrap sales: Sims purchase...
Sims Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Positive
The call portrays a materially improved and structurally stronger company: major earnings uplift (underlying EBIT +~170%), ROIC above cost of capital (11.7%), strong cash conversion and sizable operational wins in SLS and North American metal businesses supported by very strong non-ferrous and memory pricing. Offsetting risks are concentrated in ANZ ferrous weakness, near-term timing variability in data center refresh cycles, and exposure to commodity price volatility and certain one-off statutory adjustments. Overall the positive operational results, cash generation and strategic positioning outweigh the short-term challenges and uncertainties.Positive Updates
Strong underlying EBIT growth
Underlying EBIT increased nearly 170% to $468 million (FY26), driven by SLS growth, higher non-ferrous pricing and improved operating metrics.
Negative Updates
ANZ ferrous market weakness
ANZ ferrous business remained under pressure from elevated Chinese exports and soft Asian/Middle East buying; ferrous margins in ANZ were impacted and the segment performed below other divisions.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong underlying EBIT growth
Underlying EBIT increased nearly 170% to $468 million (FY26), driven by SLS growth, higher non-ferrous pricing and improved operating metrics.
Read all positive updates
Company Guidance
Sims guided that SLS is expected to deliver underlying EBIT of A$75–90m in H1 FY27, with management flagging lower volumes of high‑speed DDR4 in that half despite new DDR4 prices finishing FY26 >1,000% above the prior year; SLS repurposed units grew ~91% YoY and total repurposed units handled were nearly double prior year. At group level FY27 depreciation & amortisation is forecast at ~A$260m, the group converted >70% of EBITDA to operating cash and invested A$488m in capex and acquisitions over the last 12 months, finishing with net book assets of A$2.7bn and ROIC of 11.7%; the Board declared a final fully‑franked dividend of A$0.20 (FY26 total A$0.34). Management expects continued strong non‑ferrous contribution (Zorba/copper/aluminium) and North American ferrous support from tariffs and EAF growth, while ANZ will remain impacted by Chinese steel exports in FY27; working capital was broadly steady (restricted cash down from ~A$95m at the half) and inventory/receivables benefited from ~A$200m uplift from non‑ferrous prices. Other notable metrics called out were TRIFR 1.09, 5.9Mt ferrous recycled avoiding >9.5Mt CO2e (≈1.6x combined Scope 1‑3), and a pay equity gap under 2%.Sims Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.01B | 7.49B | 7.20B | 8.08B | 9.28B |
| Gross Profit | 1.49B | 2.15B | 1.04B | 844.30M | 1.15B |
| EBITDA | 559.90M | 345.10M | 381.00M | 523.00M | 491.90M |
| Net Income | 245.30M | -19.00M | -57.80M | 181.10M | 599.30M |
Balance Sheet | |||||
| Total Assets | 4.74B | 4.45B | 4.90B | 4.71B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 197.20M | 215.60M | 280.80M | 329.80M | 267.50M |
| Total Debt | 826.70M | 787.70M | 784.40M | 804.80M | 701.70M |
| Total Liabilities | 2.09B | 1.86B | 2.34B | 2.05B | 1.90B |
| Stockholders Equity | 2.66B | 2.59B | 2.56B | 2.66B | 2.54B |
Cash Flow | |||||
| Free Cash Flow | 220.20M | 103.00M | -12.10M | 218.70M | 273.10M |
| Operating Cash Flow | 423.60M | 297.10M | 202.50M | 449.20M | 547.80M |
| Investing Cash Flow | -297.70M | -64.50M | -344.50M | -245.20M | -274.80M |
| Financing Cash Flow | -120.00M | -142.40M | -75.50M | -155.00M | -259.70M |
Sims Technical Analysis
Positive
24.16
Price Trends
25.38
Negative
24.92
Positive
22.08
Positive
Market Momentum
-0.33
Negative
51.38
Neutral
82.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGM, the sentiment is Positive. The current price of 24.16 is below the 20-day moving average (MA) of 24.72, below the 50-day MA of 25.38, and above the 200-day MA of 22.08, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 82.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SGM.
Sims Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$211.12M | 12.49 | 22.20% | 8.54% | -10.61% | -14.62% | |
68 Neutral | AU$14.04B | 17.51 | 7.60% | 9.78% | 2.39% | 860.73% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | AU$4.82B | 19.71 | 9.52% | 1.38% | 6.60% | ― | |
56 Neutral | AU$419.05M | -13.81 | -7.06% | 3.51% | -42.65% | 62.24% | |
52 Neutral | AU$1.95B | 17.46 | 6.80% | 3.70% | 9.88% | 22.36% | |
49 Neutral | AU$857.20M | 49.62 | 7.30% | 1.31% | 15.32% | 13.54% |
* Basic Materials Sector Average
AU:SGM
Sims
25.10
11.59
85.76%
AU:CIA
Champion Iron
3.53
-0.86
-19.52%
AU:BSL
Bluescope Steel
32.56
11.24
52.73%
AU:MGX
Mount Gibson Iron Limited
0.35
-0.03
-6.67%
AU:BIS
Bisalloy Steel Group Ltd
4.42
-0.87
-16.37%
AU:VSL
Vulcan Steel Ltd.
5.62
-1.64
-22.63%
Sims Corporate Events
Sims Updates Market on Director Stephen Mikkelsen’s Changed Security Interests
Sep 1, 2026
Sims Limited has lodged an Appendix 3Y with the ASX notifying a change in the relevant interests in securities held by director Stephen Mikkelsen. The filing, made in accordance with ASX listing rules and Corporations Act requirements, provides up...
Sims Director Grant Dempsey Acquires First Shareholding via SMSF
Aug 19, 2026
Sims Limited has disclosed a change in director interests, confirming that director Grant Dempsey has acquired an indirect stake in the company. The shares are held through Seagrove SMSF, indicating the investment is structured via a self-managed ...
Sims outlines FY26 update focused on decarbonisation and circularity
Aug 17, 2026
Sims released a brief update dated 18 August 2026 covering information on its activities for the full year ended 30 June 2026, framed around its strategy of creating value through decarbonisation and circularity. The document emphasises that the i...
Sims Limited Swings to Strong Profit on Higher Revenue and U.S. Expansion
Aug 17, 2026
Sims Limited reported a 6.9% increase in sales revenue from continuing operations to A$8.01 billion for the year ended 30 June 2026, with net profit attributable to members surging to A$245.3 million from a loss of A$19.0 million in the prior year...
Yarra Capital Group Exits Substantial Holding in Sims Limited
Jul 30, 2026
Yarra Capital Management and associated entities have filed notice that they have ceased to be substantial shareholders in Sims Limited. Between 27 and 28 July 2026, the group sold 244,527 voting securities in the company, reducing their holding b...
Sims reshapes top team to unify global metals arm and boost digital strategy
Jun 29, 2026
Sims Limited has announced a series of executive leadership changes as part of a planned succession strategy and a push to better align its global metal operations and technology agenda. Long‑time executive John Glyde will step down from his...
Australian Retirement Trust exits substantial holding in Sims Limited
Jun 24, 2026
Australian Retirement Trust Pty Ltd has notified Sims Limited that it has ceased to be a substantial shareholder in the company as of June 22, 2026. The change reflects a reduction in the fund’s relevant interest in Sims’ voting securi...
Sims lifts FY26 profit outlook on stronger metals and data-centre demand
Jun 16, 2026
Sims Limited has upgraded its FY26 Group underlying EBIT guidance to a range of $420 million to $435 million, up from a prior forecast of $350 million to $400 million, reflecting stronger conditions in non-ferrous markets and improving ferrous dem...
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.