Grupo Simec SAB de CV

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SIM : AMEX : Basic Materials
$11.07 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2600.0
08/16/17 - 3:59 PM ET

Financial Analysis


GRUPO SIMEC SA DE CV's gross profit margin for the second quarter of its fiscal year 2017 has decreased 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 decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.24% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)413.6340.03
EBITDA ($mil)70.7774.78
EBIT ($mil)50.2460.38
Net Income ($mil)35.4691.62


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)367.34381.76
Total Assets ($mil)2293.942197.58
Total Debt ($mil)0.30.3
Equity ($mil)1807.821785.53


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin22.026.01
EBITDA Margin17.1121.99
Operating Margin12.1517.76
Sales Turnover0.640.58
Return on Assets2.611.2
Return on Equity3.311.48
Debt Q2 FY17 Q2 FY16
Current Ratio3.754.01
Debt/Capital0.00.0
Interest Expense0.640.24
Interest Coverage78.25255.83


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)164.96161.86
Div / share0.00.0
EPS0.220.57
Book value / share10.9611.03
Institutional Own % n/a n/a
Avg Daily Volume2867.06769.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 40.94 for the Metals & Mining industry and a premium compared to the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 1.00 indicates a significant discount versus the S&P 500 average of 3.03 and a discount versus the industry average of 1.77. 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 29.70 Peers 40.94   SIM 11.63 Peers 12.79

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 NA Peers 22.79   SIM 0.04 Peers 0.94

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 1.00 Peers 1.77   SIM 105.55 Peers 262.87

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.

 

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

However, SIM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIM 1.23 Peers 2.84   SIM 15.51 Peers 13.05

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SIM has a sales growth rate that exceeds its peers.

 

 

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