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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Industrias CH SA de CV

Grupo SIMEC SAB de CV

Why is Grupo SIMEC SAB de CV ?

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(9M) At MXN 2,935.12 MM has Grown at -53.83%
OPERATING CASH FLOW(Y) Lowest at MXN 1,269.21 MM
ROCE(HY) Lowest at 3.13%

With ROE of 6.09%, it has a expensive valuation with a 1.49 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 4.63%, its profits have fallen by -63.3%

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

4.63%

-0.12

13.78%

Mexico IPC

11.57%

0.71

19.23%

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)

0.58

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

1.49

EV to EBIT

13.08

EV to EBITDA

10.62

EV to Capital Employed

1.91

EV to Sales

1.98

PEG Ratio

Dividend Yield

ROCE (Latest)

14.60%

ROE (Latest)

6.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.77% (YoY

NET SALES(Q)

Highest at MXN 8,031.53 MM

OPERATING PROFIT(Q)

Highest at MXN 1,714.77 MM

PRE-TAX PROFIT(Q)

Highest at MXN 1,776.59 MM

NET PROFIT(Q)

Highest at MXN 1,706.17 MM

EPS(Q)

Highest at MXN 3.71

-21What is not working for the Company

NET PROFIT(9M)

At MXN 2,935.12 MM has Grown at -53.83%

OPERATING CASH FLOW(Y)

Lowest at MXN 1,269.21 MM

ROCE(HY)

Lowest at 3.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,397.41

DEBT-EQUITY RATIO (HY)

Highest at -45.72 %

INTEREST(Q)

Highest at MXN 38.99 MM

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

Net Profit

At MXN 1,706.17 MM has Grown at 345.11%

over average net sales of the previous four periods of MXN 383.31 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Pre-Tax Profit

At MXN 1,776.59 MM has Grown at 147.5%

over average net sales of the previous four periods of MXN 717.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (MXN MM)

Net Sales

Highest at MXN 8,031.53 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Operating Profit

Highest at MXN 1,714.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Pre-Tax Profit

Highest at MXN 1,776.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

Highest at MXN 1,706.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 3.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Raw Material Cost

Fallen by -3.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at MXN 288.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (MXN MM)

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

Interest

At MXN 38.99 MM has Grown at 36.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Interest Coverage Ratio

Lowest at 4,397.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at MXN 1,269.21 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Interest

Highest at MXN 38.99 MM

in the last five periods and Increased by 36.37% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Debt-Equity Ratio

Highest at -45.72 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio