Sims Limited
Sims Limited Fundamental Analysis
Sims Limited (SMUPF) shows moderate financial fundamentals with a PE ratio of -70.85, profit margin of -0.76%, and ROE of -2.29%. The company generates $7.6B in annual revenue with moderate year-over-year growth of 4.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SMUPF's fundamental strength across five key dimensions:
Efficiency Score
WeakSMUPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSMUPF trades at attractive valuation levels.
Growth Score
ModerateSMUPF shows steady but slowing expansion.
Financial Health Score
ExcellentSMUPF maintains a strong and stable balance sheet.
Profitability Score
WeakSMUPF struggles to sustain strong margins.
Key Financial Metrics
Is SMUPF Expensive or Cheap?
P/E Ratio
SMUPF trades at -70.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SMUPF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Sims Limited at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.12 times EBITDA. This signals the market has high growth expectations.
How Well Does SMUPF Make Money?
Net Profit Margin
For every $100 in sales, Sims Limited keeps $-0.76 as profit after all expenses.
Operating Margin
Core operations generate 2.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.29 in profit for every $100 of shareholder equity.
ROA
Sims Limited generates $-1.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sims Limited generates limited operating cash flow of $104.28M, signaling weaker underlying cash strength.
Free Cash Flow
Sims Limited generates weak or negative free cash flow of $-72.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.38 in free cash annually.
FCF Yield
SMUPF converts -1.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-70.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SMUPF Stacks Against Its Sector Peers
| Metric | SMUPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -70.85 | 24.91 | Better (Cheaper) |
| ROE | -2.29% | 840.00% | Weak |
| Net Margin | -0.76% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 1.51 | 4.94 | Neutral |
| ROA | -1.34% | -4176.00% (disorted) | Weak |
SMUPF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sims Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.68%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
92.49%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
576.84%
Industry Style: Cyclical, Commodity, Value
High Growth