Grupo SIMEC SAB de CV (SIMECB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Industrias CH SA de CV

Grupo SIMEC SAB de CV

Why is Grupo SIMEC SAB de CV ?

With a fall in Net Sales of -9.39%, the company declared Very Negative results in Jun 25

INTEREST(HY) At MXN 53.12 MM has Grown at 607.97%
OPERATING CASH FLOW(Y) Lowest at MXN 1,406.51 MM
INTEREST COVERAGE RATIO(Q) Lowest at 4,779.89

With ROE of 10.64%, it has a expensive valuation with a 1.54 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.63%, its profits have fallen by -26.2%

Below par performance in long term as well as near term

Along with generating -1.63% returns in the last 1 year, the stock has also underperformed Mexico IPC in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Grupo SIMEC SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupo SIMEC SAB de CV

-1.62%

-0.13

12.37%

Mexico IPC

25.36%

1.61

16.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.18%

EBIT Growth (5y)

6.08%

EBIT to Interest (avg)

82.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.67

Tax Ratio

8.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

31.40%

ROE (avg)

15.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.54

EV to EBIT

12.35

EV to EBITDA

10.23

EV to Capital Employed

2.00

EV to Sales

1.99

PEG Ratio

Dividend Yield

ROCE (Latest)

16.16%

ROE (Latest)

10.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND EQV(HY)

Highest at MXN 57,319.1 MM

-36What is not working for the Company

INTEREST(HY)

At MXN 53.12 MM has Grown at 607.97%

OPERATING CASH FLOW(Y)

Lowest at MXN 1,406.51 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 4,779.89

PRE-TAX PROFIT(Q)

Lowest at MXN -703.97 MM

NET PROFIT(Q)

Lowest at MXN -1,000.38 MM

NET SALES(Q)

Lowest at MXN 7,052.14 MM

OPERATING PROFIT(Q)

Lowest at MXN 1,272.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.04 %

EPS(Q)

Lowest at MXN -2.17

Here's what is working for Grupo SIMEC SAB de CV

Cash and Eqv

Highest at MXN 57,319.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Grupo SIMEC SAB de CV

Interest

At MXN 53.12 MM has Grown at 607.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Net Sales

At MXN 7,052.14 MM has Fallen at -15.93%

over average net sales of the previous four periods of MXN 8,388.71 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (MXN MM)

Pre-Tax Profit

At MXN -703.97 MM has Fallen at -122.75%

over average net sales of the previous four periods of MXN 3,094.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

At MXN -1,000.38 MM has Fallen at -135.34%

over average net sales of the previous four periods of MXN 2,830.9 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Interest Coverage Ratio

Lowest at 4,779.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at MXN -703.97 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN -1,000.38 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Operating Cash Flow

Lowest at MXN 1,406.51 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Net Sales

Lowest at MXN 7,052.14 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN 1,272.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 18.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at MXN -2.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)