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Sims
(OTC:SMSMY)
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Rating:64Neutral
Price Target:
$17.50
▲(0.75% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by improving fundamentals and a strong, constructive earnings call (sharp EBIT/ROIC improvement and solid cash conversion outlook), tempered by still-inconsistent cash flow quality and cyclicality. Technicals meaningfully detract due to a clear downtrend (below key moving averages and negative MACD), while valuation is roughly neutral with a modest dividend yield.
Positive Factors
Improved earnings and returns
The sharp EBIT recovery and ROIC above the cost of capital indicate stronger operating performance and improved capital efficiency. If sustained through the cycle, these gains can support reinvestment, resilience and shareholder returns.
Negative Factors
Cyclical and volatile profitability
The wide margin swings and prior-year losses show that earnings remain sensitive to scrap spreads, commodity prices and product mix. This limits the predictability of profits and makes the recent recovery less clearly durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved earnings and returns
The sharp EBIT recovery and ROIC above the cost of capital indicate stronger operating performance and improved capital efficiency. If sustained through the cycle, these gains can support reinvestment, resilience and shareholder returns.
Read all positive factors
Sims (SMSMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.47B
Dividend Yield1.01%
Average Volume (3M)192.00
Price to Earnings (P/E)19.7
Beta (1Y)1.09
Revenue Growth12.02%
EPS GrowthN/A
CountryUS
Employees4,015
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.29
Shares Outstanding193,232,990
10 Day Avg. Volume251
30 Day Avg. Volume192
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.08
Price to Sales (P/S)0.70
P/FCF Ratio25.61
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)1.33
Revenue Forecast (FY)$6.13B
Sims Business Overview & Revenue Model
Company Description
Sims Ltd. engages in the recycling of metal and electronics. It operates through the following segments: North America Metals (NAM), Australia, New Zealand Metals (ANZ), UK Metal (UK), Global Trading, Investment in SA Recycling (SAR), Sims Lifecyc...
How the Company Makes Money
Sims makes money primarily by acquiring end-of-life metal-containing materials (such as obsolete scrap from manufacturers, demolition projects, and consumer sources), processing those inputs (sorting, shearing, shredding, and separating ferrous an...
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 presented a strongly positive operational and financial story driven by exceptional underlying EBIT growth (+~170% to $468m), robust SLS expansion (repurposed units +~91%), record-high DDR4 and non-ferrous pricing, and solid cash conversion and ROIC (11.7%). Challenges highlighted were largely market-timing and regional (ANZ ferrous pressure from Chinese exports), short-term variability in data-center refresh timing (impacting H1 SLS guidance), a prior U.K. receivable write-down, and cost pressures in waste, fuel and labor. On balance, the company demonstrated improved structural earnings quality, strategic positioning for future GPU/DDR5 opportunities, strong North American performance and disciplined capital management, which outweigh the near-term operational and regional headwinds.Positive Updates
Strong Underlying Earnings and ROIC
Underlying EBIT increased nearly 170% year-over-year to $468 million, driving return on invested capital to 11.7%, comfortably above the company's cost of capital.
Negative Updates
ANZ Ferrous Market Weakness
ANZ ferrous margins remain pressured by elevated Chinese steel exports and softer Asian/Middle East buying; ANZ was the only division not showing significant year-over-year improvement and experienced shredder downtime (St Marys) in Q1 which impacted throughput.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Underlying Earnings and ROIC
Underlying EBIT increased nearly 170% year-over-year to $468 million, driving return on invested capital to 11.7%, comfortably above the company's cost of capital.
Read all positive updates
Company Guidance
Guidance: management expects SLS first‑half underlying EBIT of A$75–90m, with less high‑speed DDR4 volume in H1 FY27 versus H2 FY26 but a positive medium‑term outlook as DDR5 and GPUs ramp over the next 12–24 months; metal businesses should continue to benefit from strong non‑ferrous pricing and North American ferrous support from tariffs, EAF growth and data‑center steel demand, while ANZ will continue to be affected by Chinese exports. Key metrics and context: FY26 underlying EBIT was A$468m (up ~170%), ROIC 11.7% (above cost of capital), SLS repurposed units grew ~91% (nearly doubled y/y), ferrous recycled 5.9Mt avoiding >9.5Mt CO2e (~1.6x combined Scope 1–3), new DDR4 reference prices finished >1,000% above prior year, the group converted >70% of EBITDA to operating cash, invested A$488m in capex and acquisitions, forecasts FY27 depreciation & amortization ~A$260m, finished with net book assets A$2.7bn (including ~A$200m inventory/receivables uplift from non‑ferrous), expects central cost reallocation in FY27, and the Board declared a final dividend of A$0.20 fully franked (total FY26 A$0.34/share).Sims Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.83B | 7.49B | 7.20B | 8.08B | 9.28B |
| Gross Profit | 1.46B | 2.15B | 1.04B | 844.30M | 1.15B |
| EBITDA | 547.67M | 345.10M | 381.00M | 523.00M | 491.90M |
| Net Income | 239.94M | -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 | 197.21M | 215.60M | 280.80M | 329.80M | 267.50M |
| Total Debt | 826.75M | 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 | 215.39M | 103.00M | -12.10M | 218.70M | 273.10M |
| Operating Cash Flow | 414.34M | 297.10M | 202.50M | 449.20M | 547.80M |
| Investing Cash Flow | -291.19M | -64.50M | -344.50M | -245.20M | -274.80M |
| Financing Cash Flow | -117.38M | -142.40M | -75.50M | -155.00M | -259.70M |
Sims Technical Analysis
Positive
17.37
Price Trends
17.90
Positive
17.57
Positive
15.37
Positive
Market Momentum
-0.13
Negative
54.12
Neutral
80.38
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 17.37 is below the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.90, and above the 200-day MA of 15.37, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 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 | $3.47B | 19.71 | 9.52% | 1.01% | 12.02% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $5.18B | 6.40 | 3.83% | 8.18% | 7.95% | -38.27% | |
56 Neutral | $826.08M | 104.89 | 1.17% | 3.74% | 16.12% | ― | |
54 Neutral | $1.64B | -3.51 | -18.55% | 12.27% | 9.29% | -26.44% | |
49 Neutral | $1.84B | 103.34 | 1.52% | 1.77% | 11.33% | -92.60% |
* Basic Materials Sector Average
SMSMY
Sims
18.03
9.09
101.76%
SIM
Grupo Simec SA De CV
26.60
1.60
6.40%
SID
Companhia Siderúrgica Nacional
1.22
-0.24
-16.44%
MTUS
Metallus
19.93
3.11
18.49%
WS
Worthington Steel, Inc.
36.17
4.76
15.17%
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.