Grupo Simec SAB de CV

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SIM : AMEX : Basic Materials
$10.36 -0.21 | -1.99%
Today's Range: 10.36 - 10.67
Avg. Daily Volume: 4800.0
06/28/17 - 3:57 PM ET

Financial Analysis


GRUPO SIMEC SA DE CV's gross profit margin for the first quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. GRUPO SIMEC SA DE CV is extremely liquid. Currently, the Quick Ratio is 2.45 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)420.77354.46
EBITDA ($mil)145.0251.51
EBIT ($mil)62.9835.21
Net Income ($mil)36.1559.93


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)360.42361.87
Total Assets ($mil)2217.072230.39
Total Debt ($mil)0.30.3
Equity ($mil)1827.981785.75


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin39.3720.07
EBITDA Margin34.4614.53
Operating Margin14.979.93
Sales Turnover0.630.59
Return on Assets5.23-1.77
Return on Equity6.35-2.21
Debt Q1 FY17 Q1 FY16
Current Ratio3.63.72
Debt/Capital0.00.0
Interest Expense28.750.37
Interest Coverage2.1996.46


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)165.31161.76
Div / share0.00.0
EPS0.220.37
Book value / share11.0611.04
Institutional Own % n/a n/a
Avg Daily Volume4645.06184.0

Valuation


BUY. GRUPO SIMEC SA DE CV's P/E ratio indicates a significant discount compared to an average of 31.47 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 0.94 indicates a significant discount versus the S&P 500 average of 3.09 and a discount versus the industry average of 1.63. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, GRUPO SIMEC SA DE CV proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SIM 14.50 Peers 31.47   SIM 10.97 Peers 10.56

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SIM is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SIM is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIM 0.70 Peers 19.33   SIM 0.01 Peers 1.05

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SIM is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SIM trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIM 0.94 Peers 1.63   SIM 413.04 Peers 236.04

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SIM is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SIM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIM 1.23 Peers 2.69   SIM 5.69 Peers 7.20

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SIM is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SIM trails its peers on the basis of sales growth

 

 

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