Grupo Simec S.A.B. de C.V. American Depositary Shares (SIM)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient, old-fashioned investor. Grupo Simec makes special steels and structural profiles in Mexico, the U.S., Canada, and Brazil. In the latest quarter, fiscal Q2 2026, it reported revenue of $8.2B and net income of $611.0M, a 7.49% net margin. The supplied data also show 15.63% revenue growth and 161.07% profit growth, though the period for those growth rates is not named, so I would verify the filing before relying on them. At the 2026-10-13 close of $27.49, the market cap is $4.9B. FairStock's P/E is 21.48 and P/B is 1.19; its Graham Number is $61.86, implying a 55.56% margin of safety. The balance sheet is debt-free (D/E 0.00), which is a real strength. But return on equity is only 5.81% and return on capital employed 4.63%; those are not high-quality compounder numbers. Trailing free cash flow is negative $928.1M, a -19.1% FCF yield, so reported profits are not converting into cash. Altman Z 2.14 is in the grey zone and Piotroski is 5/9. The stock trades near the low end of its 52-week range ($26.00-$34.59) with a very low beta of 0.15. FairStock assigns no Lynch category because there are only 0 years of filed results. Steel is cyclical and commodity-like, so I see limited moat; regional special-steel niches help, but pricing power is not obvious. The price looks undemanding versus book value and the Graham calculation, but negative cash flow and weak returns keep me cautious. I would need consistent free cash generation and better capital returns before calling this compelling value.

In plain English: Grupo Simec makes special steels and steel profiles in Mexico, the United States, Canada, and Brazil. In the latest quarter, fiscal Q2 2026, it reported sales of $8.2B and net income of $611.0M, and it carries no debt. The shares look inexpensive on book value and a simple value measure, but the business is not generating free cash and earns modest returns, so it looks more like a cheap-but-cyclical steel stock than a clearly strong compounder.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer