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Grupo Simec SA De CV
(SIM)
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Rating:61Neutral
Price Target:
$31.00
▲(16.94% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily driven by mixed financial performance: a very strong, low-leverage balance sheet supports stability, but the most recent TTM period shows notably weaker profitability and negative free cash flow. Technically, the stock is trading below key moving averages, adding a modest headwind. Valuation is supportive with a low P/E, but not enough to fully offset the recent cash flow and margin deterioration.
Positive Factors
Very Low Leverage
Minimal debt reduces refinancing and interest-rate risk, preserving financial flexibility through steel cycles. The well-capitalized balance sheet can support operations and investment even when profitability or cash conversion weakens.
Negative Factors
TTM Margin Compression
The sharp margin decline indicates reduced earnings power despite higher reported revenue. Pricing, volumes, input costs, or one-time effects may be pressuring profitability, creating risk that recent earnings strength will not persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal debt reduces refinancing and interest-rate risk, preserving financial flexibility through steel cycles. The well-capitalized balance sheet can support operations and investment even when profitability or cash conversion weakens.
Read all positive factors
Grupo Simec SA De CV (SIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.17B
Dividend YieldN/A
Average Volume (3M)445.00
Price to Earnings (P/E)6.4
Beta (1Y)0.35
Revenue Growth7.95%
EPS Growth-38.27%
CountryUS
Employees4,961
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)22.11
Shares Outstanding165,903,080
10 Day Avg. Volume588
30 Day Avg. Volume445
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)1.49
Price to Sales (P/S)2.63
P/FCF Ratio-75.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Grupo Simec SA De CV Business Overview & Revenue Model
Company Description
Grupo Simec, S.A.B. de C.V. is a Mexican enterprise primarily engaged in the fabrication, refinement, and sale of high-quality bar steel (SBQ) and various steel alloy commodities. Its market reach extends throughout Mexico, the United States, Braz...
How the Company Makes Money
Grupo Simec primarily makes money by manufacturing and selling steel products. Its core revenue stream comes from (1) selling long steel products (e.g., merchant bar, reinforcing-type products and other rolled long products, where applicable) to d...
Grupo Simec SA De CV Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.96B | 33.66B | 33.66B | 41.22B | 54.16B | 55.62B |
| Gross Profit | 13.57B | 7.62B | 7.62B | 10.63B | 14.48B | 15.65B |
| EBITDA | 7.80B | 13.63B | 13.61B | 7.67B | 12.33B | 15.10B |
| Net Income | 4.31B | 10.49B | 10.49B | 5.19B | 7.86B | 9.44B |
Balance Sheet | ||||||
| Total Assets | 73.02B | 71.60B | 74.81B | 66.79B | 67.63B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 27.44B | 28.59B | 29.16B | 23.58B | 21.55B | 739.32M |
| Total Debt | 5.29M | 5.43M | 6.19M | 5.10M | 5.85M | 302.76K |
| Total Liabilities | 11.85B | 12.12B | 15.61B | 16.98B | 19.64B | 765.96M |
| Stockholders Equity | 61.15B | 59.46B | 59.17B | 49.78B | 47.96B | 2.05B |
Cash Flow | ||||||
| Free Cash Flow | -530.08M | -1.17B | 3.42B | 1.77B | 7.25B | 7.32B |
| Operating Cash Flow | 1.67B | 1.62B | 5.55B | 4.26B | 8.95B | 8.39B |
| Investing Cash Flow | -1.80B | -2.09B | -277.77M | -1.28B | -4.14B | -1.01B |
| Financing Cash Flow | -112.75M | -108.59M | -130.23M | -242.77M | 2.23B | -161.94M |
Grupo Simec SA De CV Technical Analysis
Negative
26.51
Price Trends
29.77
Negative
30.14
Negative
30.13
Negative
Market Momentum
0.08
Positive
47.79
Neutral
44.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIM, the sentiment is Negative. The current price of 26.51 is below the 20-day moving average (MA) of 29.98, below the 50-day MA of 29.77, and below the 200-day MA of 30.13, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 44.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIM.
Grupo Simec SA De CV Risk Analysis
Grupo Simec SA De CV disclosed 43 risk factors in its most recent earnings report. Grupo Simec SA De CV reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grupo Simec SA De CV Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.18B | 12.13 | 13.65% | 1.10% | 15.23% | 1535.96% | |
66 Neutral | $10.82B | 15.22 | 5.77% | 4.65% | -0.65% | 18.90% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $5.17B | 6.40 | 3.33% | ― | 7.95% | -38.27% | |
61 Neutral | $7.94B | 30.87 | 2.53% | 2.65% | 8.98% | -21.39% | |
53 Neutral | $6.45B | -6.77 | -15.23% | ― | 4.14% | 52.63% | |
47 Neutral | $1.32B | -2.85 | -18.55% | ― | 9.29% | -26.44% |
* Basic Materials Sector Average
SIM
Grupo Simec SA De CV
29.33
1.33
4.75%
CLF
Cleveland-Cliffs
11.52
0.98
9.30%
CMC
Commercial Metals Company
66.85
9.96
17.50%
GGB
Gerdau SA
4.36
1.45
49.67%
SID
Companhia Siderúrgica Nacional
1.02
-0.34
-25.00%
TX
Ternium SA
55.20
23.79
75.72%
Grupo Simec SA De CV Corporate Events
Grupo Simec Files 2025 Form 20‑F With U.S. SEC
Jul 31, 2026
On July 31, 2026, Grupo Simec announced that it had filed its Annual Report on Form 20‑F for the year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The filing, which includes the company’s complete audited f...
Grupo Simec Delivers Strong First-Half 2026 Earnings on Higher Volumes and FX Relief
Jul 29, 2026
Grupo Simec reported its financial results for the first six-month period ended June 30, 2026, showing a 9% rise in net sales to Ps. 16,186 million, driven by a 16% increase in shipments despite lower average prices. Mexican sales grew 15% while f...
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.