Simonds Group Limited Fundamental Analysis (ASX: SIO.AX)
Simonds Group Limited Fundamental Analysis (ASX: SIO.AX)
Simonds Group Limited (ASX: SIO.AX) shows moderate financial fundamentals with a PE ratio of 5.69, profit margin of 1.43%, and ROE of 39.47%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SIO.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSIO.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSIO.AX trades at attractive valuation levels.
Growth Score
ModerateSIO.AX shows steady but slowing expansion.
Financial Health Score
ModerateSIO.AX shows balanced financial health with some risks.
Profitability Score
ModerateSIO.AX maintains healthy but balanced margins.
Key Financial Metrics
Is SIO.AX Expensive or Cheap?
P/E Ratio
SIO.AX trades at 5.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SIO.AX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Simonds Group Limited at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.04 times EBITDA. This is generally considered low.
How Well Does SIO.AX Make Money?
Net Profit Margin
For every $100 in sales, Simonds Group Limited keeps $1.43 as profit after all expenses.
Operating Margin
Core operations generate 2.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.47 in profit for every $100 of shareholder equity.
ROA
Simonds Group Limited generates $4.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Simonds Group Limited generates limited operating cash flow of $25.29M, signaling weaker underlying cash strength.
Free Cash Flow
Simonds Group Limited generates weak or negative free cash flow of $21.20M, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
SIO.AX converts 35.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How SIO.AX Stacks Against Its Sector Peers
| Metric | SIO.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.69 | 24.39 | Better (Cheaper) |
| ROE | 39.47% | 982.00% | Weak |
| Net Margin | 1.43% | -2428.00% (disorted) | Weak |
| Debt/Equity | 1.04 | 0.63 | Weak (High Leverage) |
| Current Ratio | 1.08 | 2.35 | Neutral |
| ROA | 4.85% | 356.00% | Weak |
SIO.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Simonds Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary