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Sims (SGM) AI Stock Analysis
Sims
(ASX:SGM)
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.
Sims (SGM) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 3.09B
- Dividend Yield
- 1.63%
- Average Volume (3M)
- 738.91K
- Price to Earnings (P/E)
- 16.4
- Beta (1Y)
- 1.34
- Revenue Growth
- 6.60%
- EPS Growth
- ―
- Country
- Australia
- Employees
- 4,015
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Steel
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, Bangladesh,...
How the Company Makes Money
Sims makes money primarily by buying recovered materials (mainly scrap metal) from suppliers and selling processed, specification-grade commodities to industrial customers. The company’s largest revenue stream comes from its Metal segment: it procure...
Sims Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative 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
Financials show a recovery in 2026 with revenue rebounding and a return to positive EBIT/net income, while the balance sheet remains a clear strength with moderate, stable leverage. Offsetting this, profitability and ROE have been volatile across the cycle and margins are still thin, and free cash flow has been uneven over time despite improvement in 2026.
Income Statement
62PositiveBalance Sheet
74PositiveCash Flow
55Neutral| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.01B | 8.01B | 7.49B | 7.20B | 8.08B | 9.28B |
| Gross Profit | 1.49B | 1.49B | 2.15B | 1.04B | 844.30M | 1.15B |
| EBITDA | 559.90M | 559.90M | 345.10M | 381.00M | 523.00M | 589.40M |
| Net Income | 245.30M | 245.30M | -19.00M | -57.80M | 181.10M | 599.30M |
Balance Sheet | ||||||
| Total Assets | 4.74B | 4.74B | 4.45B | 4.90B | 4.71B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 197.20M | 197.20M | 215.60M | 280.80M | 329.80M | 267.50M |
| Total Debt | 826.70M | 826.70M | 787.70M | 784.40M | 804.80M | 701.70M |
| Total Liabilities | 2.09B | 2.09B | 1.86B | 2.34B | 2.05B | 1.90B |
| Stockholders Equity | 2.66B | 2.66B | 2.59B | 2.56B | 2.66B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 220.20M | 220.20M | 103.00M | -12.10M | 218.70M | 273.10M |
| Operating Cash Flow | 423.60M | 423.60M | 297.10M | 202.50M | 449.20M | 547.80M |
| Investing Cash Flow | -297.70M | -297.70M | -64.50M | -344.50M | -245.20M | -274.80M |
| Financing Cash Flow | -120.00M | -120.00M | -142.40M | -75.50M | -155.00M | -259.70M |
Sims Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGM, the sentiment is Negative. The current price of 20.80 is below the 20-day moving average (MA) of 21.33, below the 50-day MA of 23.05, and below the 200-day MA of 22.94, indicating a bearish trend. The MACD of -0.92 indicates Negative momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SGM.
Sims Peers Comparison
Overall Rating
AU:BIS76Outperform
AU:BSL76Outperform- AU:SGM59Neutral
AU:VSL49Neutral
AU:CIA48Neutral
AU:MGX45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:BIS | 76Outperform | AUD 198.07M | 11.71 | 22.20% | 9.12% | -10.61% | -14.62% |
| AU:BSL | 76Outperform | AUD 14.58B | 18.19 | 7.60% | 5.49% | 2.39% | 860.73% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| AU:SGM | 59Neutral | AUD 4.01B | 16.38 | 9.52% | 1.63% | 6.60% | ― |
| AU:VSL | 49Neutral | AUD 813.24M | 47.77 | 7.30% | 1.10% | 15.32% | 13.54% |
| AU:CIA | 48Neutral | AUD 1.07B | 671.45 | -0.10% | 6.81% | -7.22% | -93.97% |
| AU:MGX | 45Neutral | AUD 354.13M | -11.67 | -7.06% | ― | -42.65% | 62.24% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:SGM | Sims Ltd. | 20.80 | 5.11 | 32.59% | |
| AU:CIA | Champion Iron Ltd. | 1.92 | -3.64 | -65.53% | |
| AU:BSL | Bluescope Steel Limited | 33.29 | 12.69 | 61.63% | |
| AU:MGX | Mount Gibson Iron Limited | 0.30 | -0.05 | -15.49% | |
| AU:BIS | Bisalloy Steel Group Ltd | 4.10 | -0.57 | -12.17% | |
| AU:VSL | Vulcan Steel Ltd. | 5.55 | -1.45 | -20.68% |
Sims Corporate Events
State Street Group Ceases to Be Substantial Holder in Sims Limited
State Street Corporation, through a group of asset management and trust subsidiaries, has lodged a formal notice that it has ceased to be a substantial holder in Sims Limited as of 28 September 2026, ending its previous status as a major voting share...
Sims Updates Market on Director Stephen Mikkelsen’s Change in Securities Holdings
Sims Limited has lodged an Appendix 3Y with the ASX detailing a change in the securities interests held by director Stephen Mikkelsen, updating the market on his direct and indirect holdings. The filing reflects the company’s ongoing compliance...
State Street Group Ceases to Be Substantial Holder in Sims Limited
State Street Corporation, through a series of global asset management and trust subsidiaries, has disclosed that it has ceased to be a substantial shareholder in Sims Limited as of 18 September 2026. The notice, lodged under Australian substantial ho...
Sims Plans Expansion of Circular Technology Platform to Drive Growth
Sims outlined plans to scale its circular technology platform as part of an effort to extend its growth trajectory, highlighting a strategic focus on expanding services that support reuse and resource recovery. The update signals an emphasis on stren...
Sims outlines current activities and clarifies limits of investor presentation
Sims has released an investor presentation dated 18 September 2026 outlining information on the group’s activities and current position, framed as a high-level overview rather than a comprehensive disclosure. The company emphasises that the mat...
Sims Limited Updates Market on Director Interest Change
Sims Limited has lodged an Appendix 3Y Change of Director’s Interest Notice with the ASX for non-executive director Stephen Mikkelsen. The filing records changes to Mikkelsen’s direct and indirect holdings in Sims securities, as required...
State Street Ends Substantial Holding in Sims Limited
State Street Corporation’s asset management and custody subsidiaries have notified Sims Limited that they have ceased to be substantial holders in the company as of 9 September 2026. The change indicates that State Street’s aggregated vot...
Sims Updates Market on Director Stephen Mikkelsen’s Changed Security Interests
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 updat...
Sims Director Grant Dempsey Acquires First Shareholding via SMSF
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 sup...
Sims outlines FY26 update focused on decarbonisation and circularity
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 info...
Sims Limited Swings to Strong Profit on Higher Revenue and U.S. Expansion
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. T...
Yarra Capital Group Exits Substantial Holding in Sims Limited
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 belo...
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.
Date of analysis: Aug 19, 2026