Sims Ltd
ASX:SGM

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Sims Ltd
ASX:SGM
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Price: 12.64 AUD 1.69% Market Closed
Market Cap: 2.4B AUD
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Intrinsic Value

The intrinsic value of one SGM stock under the Base Case scenario is 18.48 AUD. Compared to the current market price of 12.64 AUD, Sims Ltd is Undervalued by 32%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

SGM Intrinsic Value
18.48 AUD
Undervaluation 32%
Intrinsic Value
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Base Case
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Sims Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Sims Ltd

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Insider Trading
0-3
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0-6
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0-12
Months
0-36
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Investment Journal
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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Sims Ltd

Current Assets 2.1B
Cash & Short-Term Investments 241m
Receivables 651.6m
Other Current Assets 1.2B
Non-Current Assets 2.8B
Long-Term Investments 670.7m
PP&E 1.6B
Intangibles 301.3m
Other Non-Current Assets 182.4m
Current Liabilities 1.4B
Accounts Payable 740.3m
Other Current Liabilities 689m
Non-Current Liabilities 912.7m
Long-Term Debt 710.9m
Other Non-Current Liabilities 201.8m
Efficiency

Earnings Waterfall
Sims Ltd

Revenue
7.2B AUD
Cost of Revenue
-6.4B AUD
Gross Profit
839.9m AUD
Operating Expenses
-929.9m AUD
Operating Income
-90m AUD
Other Expenses
32.2m AUD
Net Income
-57.8m AUD

Free Cash Flow Analysis
Sims Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Sims detailed annual earnings emphasizing a 40.7% rise in repurposed units but facing slow recovery in China, affecting resale prices with no likely recovery until year's end or early 2024. The company highlighted their strategic moves including the repurposing pivot of Sims Life Cycle services and acquisitions like Baltimore Scrap and Northeast Metal traders, supporting U.S. growth and copper recycling expansion respectively. Despite strong profit-to-cash conversion and a 286.3% increase over the past fiscal year, the report mentioned increased net debt by $32.8 million and an expected similar CapEx for the coming year. CEO Field, who is retiring, expressed positivity on medium to long-term business fundamentals with immediate growth expectations from the U.S. scrap demand.

What is Earnings Call?
Fundamental Scores

SGM Profitability Score
Profitability Due Diligence

Sims Ltd's profitability score is 45/100. The higher the profitability score, the more profitable the company is.

Positive 3-Years Revenue Growth
Positive 3-Year Average ROE
Negative Free Cash Flow
Positive 1-Year Revenue Growth
45/100
Profitability
Score

Sims Ltd's profitability score is 45/100. The higher the profitability score, the more profitable the company is.

SGM Solvency Score
Solvency Due Diligence

Sims Ltd's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
43/100
Solvency
Score

Sims Ltd's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

SGM Price Targets Summary
Sims Ltd

Wall Street analysts forecast SGM stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for SGM is 13.4 AUD with a low forecast of 10.81 AUD and a high forecast of 16.17 AUD.

Lowest
Price Target
10.81 AUD
15% Downside
Average
Price Target
13.4 AUD
6% Upside
Highest
Price Target
16.17 AUD
28% Upside
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Dividends

Dividend Yield
Lowest
Average
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
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Safe
0
25
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100
Shareholder Yield

Current shareholder yield for SGM is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Ownership

SGM Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
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12 Months
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Profile

Sims Ltd Logo
Sims Ltd

Country

United States of America

Industry

Metals & Mining

Market Cap

2.4B AUD

Dividend Yield

1.9%

Description

Sims Ltd. engages in the recycling of metal and electronics. The company is headquartered in Rye, New York and currently employs 3,881 full-time employees. The company went IPO on 2005-10-21. The firm is engaged in the buying, processing and selling of ferrous and non-ferrous recycled metals and the provision of solutions for the disposal of post-consumer electronic products, including information technology (IT) assets recycled for commercial customers. The company operates through six segments: North America Metal (NAM), Australia/New Zealand Metal (ANZ), UK Metal (UK), Global Trading, Investment in SA Recycling (SAR) and Sims Lifecycle Services (SLS). The firm's product groups include ferrous secondary recycling, non-ferrous secondary recycling, recycling solutions, and secondary processing and other services. Its ferrous secondary recycling includes the collection, processing and trading of iron and steel secondary raw material. Its non-ferrous secondary recycling comprises the collection, processing and trading of other metal alloys and residues, principally aluminum, lead, copper, zinc and nickel-bearing materials.

Contact

NEW YORK
Rye
555 Theodore Fremd Avenue, Suite C-300
+12126040710.0
www.simsmm.com

IPO

2005-10-21

Employees

3 881

Officers

Group CEO, Director & MD
Mr. Stephen John Mikkelsen BBS, CA
Group Chief Financial Officer
Mr. Warrick R. J. Ranson BBus (Acc.), F.C.A., GAICD, M.B.A.
Global Chief Operating Officer of Sims Metal
Mr. John Glyde
Global Chief Commercial Officer - Sims Metal
Mr. Robert Thompson
Group General Counsel & Company Secretary
Ms. Gretchen Johanns B.A., J.D.
Global Head of Communications & Marketing
RĂ©al Hamilton-Romeo
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Group Chief Human Resources Officer
Mr. M. Bradley Baker
Global President of Sims Lifecycle Services
Ms. Ingrid Sinclair
Joint Company Secretary
Ms. Ana Metelo
Assistant Company Secretary
Mr. Richard Brierley
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See Also

Discover More
What is the Intrinsic Value of one SGM stock?

The intrinsic value of one SGM stock under the Base Case scenario is 18.48 AUD.

Is SGM stock undervalued or overvalued?

Compared to the current market price of 12.64 AUD, Sims Ltd is Undervalued by 32%.

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