20/09/2024 09:22

Sims Ltd (SGM) $12.40

Metals recycling firm Sims reported improved first-quarter performance in its North American division, sending its stock up +12.4%. Despite ongoing challenges, in Australia and New Zealand, the metals businesses are forecast to deliver an Est. Ebit of ~$55mn in 1Q FY25 – ahead of expectations, with their North American operations the key driver.

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13/06/2024 08:51

Sims Ltd (SGM) $10.47

Scrap metal company SGM's stock fell 33% in the first half of 2024 without any meaningful respite. We believe the business's cyclical backdrop is approaching a bottom, but the market’s confidence is low after the recent fall in primary non-ferrous prices. We like the business's change in focus towards increasing domestic ferrous sales and sacrificing volumes for higher margins, as it will reduce reliance on weaker export markets.

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28/05/2024 09:10

Sims Ltd (SGM) $10.87

Scrap metal company SGM slipped 2.5% on Monday, taking its decline year-to-date to almost 30%. The company delivered a disappointing update earlier this month, driving the stock down to fresh multi-year lows, and it clearly remains in the naughty corner. While we believe the cyclical backdrop for the business is approaching a bottom, the company must remain diligent in its ongoing cost-out path as the market's confidence is low even after the recent run in primary non-ferrous prices.

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11/09/2023 16:45

Sims Limited (SGM) $13.79

SGM -10.63%: Shares in the scrap metal trading company fell to 8-month lows today after the company warned the market of softer earnings early in FY24. They expect EBIT in the first quarter to be around breakeven while a bounce back is unlikely in the second quarter given weakening volumes in the North American market.

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05/09/2023 09:04

Sims Ltd (SGM) $15.73

Metal recycling business SGM outperformed on Monday closing up +2.9% as bullish sentiment  flowed from China, today we have looked for stocks that could add 20-30% into Christmas and while SGM does fit this profile we weren’t overly impressed with last months earnings report which were solid for FY23 but we felt the outlook for FY24 was muted at best i.e. there are better ways to “play” an improvement in ferrous scrap prices.

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30/06/2023 09:10

Sims Ltd (SGM) $15.60

Metals recycling business SGM advanced +1.9% yesterday testing its 8-week high during the session, this is another stock that’s looking ok as it recovers following a 50% drop in 2022.

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31/03/2023 09:16

Sims Ltd (SGM) $15.15

SGM is the world's largest iron and steel scrap provider whose headquarters are in New York following the US$1.4bn acquisition of Metal Management in 2008. Over 70% of EBIT is now generated outside of Australia, with the US contributing half. Sims' main businesses encompass buying, processing, and selling ferrous and non-ferrous recycled metals.

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15/12/2022 09:36

Sims Ltd (SGM) $13.67

SGM has fallen -15% year-to-date plus it’s almost halved from the high of the year, the scrap metal company updated guidance for FY20 in October, just 6-weeks after their previous trading update. They once again guided the market lower as further pain in the scrap market as well as rising inventory levels impacted earnings saying “the scrap price crash...

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08/11/2022 17:14

Sims Group (SGM) $11.55

SGM -9.7%: Fell sharply today on a weak quarterly update saying that soft market conditions were persisting with cost pressures also impacting margins. They went on to say scrap metal markets are in a ‘bit of disarray’ with high costs of scrap not being reflected at the other end, putting pressure on margins. They guided to 1H earnings before interest & tax (EBIT) of $65-75m, they’ll need a miracle in the 2H to meet current consensus for the full year of $360m in EBIT.

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29/04/2022 09:11

Sims Ltd (SGM) $21.05

Recycling business SGM is a stock MM has liked for a while with its environmentally friendly outlook likely to catch potential suitors’ attention e.g. even China is gearing up to switch to the use of scrap metal instead of relying on Australia’s iron ore. The stocks are certainly at the cheap end of town trading on an Est P/E of ~8x plus the companies already generating plenty of cash hence we like the outlook for this $4.1bn business on a number of fronts including as a potential takeover target.

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