# Sims (SGM.AU)

Canonical: https://gigainvestors.com/s/SGM.AU

Analysis as of: 2026-10-16T07:39:35.054Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 20.61 per share; close as of 2026-10-15.

Estimated value: low AUD 5.69 per share, central AUD 6.44 per share, high AUD 7.45 per share. Buy at or below the central value AUD 6.44 per share. Valuation as of 2026-10-16T07:39:35.054Z; scenarios are not confidence intervals.

Expected annual return: 5.1% at the stated quote. About 5.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 1.83×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.02×

- FY2020: -0.05×

- FY2021: 0.02×

- FY2022: 0.03×

- FY2023: -0.00×

- FY2024: -0.02×

- FY2025: -0.00×

- FY2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.5%

- ROIC, second-lowest year: -2.7%

- Typical minus recent gross margin: 5.0 pp

- Typical gross margin (annual median): 23.6%

- Recent gross margin (lower of latest and 3-year median): 18.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.8%

- ROIC including acquisitions, ten-year median: 6.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 45.5%

- FY2018: 34.0%

- FY2019: 5.5%

- FY2020: -9.1%

- FY2021: 3.6%

- FY2022: 8.9%

- FY2023: -0.2%

- FY2024: -2.7%

- FY2025: -0.1%

- FY2026: 6.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.80×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 763M

- Net income, five-year total: AUD 949M

- Return on incremental invested capital: 47.2%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.3 pp

- Working capital / revenue, final three-year average: 12.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.88×

- FY2023: 0.55×

- FY2024: 1.67×

- FY2025: 0.68×

- FY2026: 0.99×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 34.0% vs -0.1%

- Per-share earnings: 0.99 to -0.10 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: AUD 2.3B

- Cumulative retained earnings: AUD 464M

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD -1.09

- Per-share value, starting three-year median: AUD 0.99

- Per-share value, ending three-year median: AUD -0.10

- Buybacks concentrated in cheaper years (correlation): 0.12

- Average buyback yield: 1.1%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 346M

- Cumulative net income, 10 years: AUD 1.5B

- ROIC, first three-year median: 34.0%

- ROIC, last three-year median: -0.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 1.00

- FY2018: AUD 0.99

- FY2019: AUD 0.75

- FY2020: AUD -1.31

- FY2021: AUD 1.12

- FY2022: AUD 3.04

- FY2023: AUD 0.92

- FY2024: AUD -0.30

- FY2025: AUD -0.10

- FY2026: AUD 1.26

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.73×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.3%

- FY2018: -1.5%

- FY2019: -6.5%

- FY2020: -6.2%

- FY2021: 2.7%

- FY2022: 1.2%

- FY2023: -5.7%

- FY2024: -5.3%

- FY2025: -7.1%

- FY2026: -3.8%

## Holders

## Price story

Down 25% since Jun 2026 · sales +6.9%

Story as of 2026-10-16T10:00:10.878Z; price observation 2026-10-15.

Price needs cash profits to grow 15.9% a year for ten years

### Sales · FY2025–2026

sales +6.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 5.1B 

- FY2018: AUD 6.5B 

- FY2019: AUD 6.7B 

- FY2020: AUD 4.9B 

- FY2021: AUD 5.9B 

- FY2022: AUD 9.3B 

- FY2023: AUD 8.1B 

- FY2024: AUD 7.2B 

- FY2025: AUD 7.5B 

- FY2026: AUD 8.0B 

### Gross margin · FY2026

gross margin 18.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 33.9% 

- FY2018: 30.4% 

- FY2019: 30.8% 

- FY2020: 33.8% 

- FY2021: 14.4% 

- FY2022: 12.4% 

- FY2023: 10.4% 

- FY2024: 14.4% 

- FY2025: 28.7% 

- FY2026: 18.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are AUD 8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2026: revenue 8007500000; grossProfit 1489500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SGM.AU: Sims Limited engages in buying, processing, and selling of ferrous and non-ferrous recycled metals in Australia, India, Thailand, China, Turkey, the United States, and internationally. The company operates through five segments: North America Metal; Australia/New Zealand Metal; Investment in SA Recycling; Sims Lifecycle Services; and Global Trading Operations. It is also involved in the collection, processing, and trading of secondary raw material from iron and steel; and other metal alloys and residues, such as aluminum, lead, copper, zinc, and nickel bearing materials. In addition, the company engages in the provision of IT recycling, repurposing and resale services; Secondary processing and other services comprise stevedoring and other services; and rental of properties. Further, it provides technology infrastructure lifecycle solutions for enterprise and hyperscale customers, including the repurposing and recycling of data centre equipment and components. The company was formerly known as Sims Metal Management Limited and changed its name to Sims Limited in November 2019.Sims Limited was founded in 1917 and is headquartered in Sydney, Australia.

### Why customers stay

Margins ranged from 14.4% to 28.7% during 2024–26; it earns 4.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2024: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2025: grossProfit / revenue = 28.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2026: grossProfit / revenue = 18.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); 10-year return on capital observations [[2017,0.45542675072876415],[2018,0.34049591786959466],[2019,0.05471547391037259],[2020,-0.09094709068184974],[2021,0.035841954057462405],[2022,0.0893006124765948],[2023,-0.0022860904225495897],[2024,-0.026693393759804777],[2025,-0.0008786455341151026],[2026,0.06599461371500813]]; median 0.0452787139839175. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2017: growth capex 14200000; upkeep 112300000; owner earnings 203600000. Growth capex / owner earnings = 0.06974459724950884.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2018: growth capex 58900000; upkeep 117200000; owner earnings 203500000. Growth capex / owner earnings = 0.28943488943488943.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2019: growth capex 35879176.46808267; upkeep 161220823.53191733; owner earnings 124439176.46808267. Growth capex / owner earnings = 0.2883270163499137.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2021: growth capex 0; upkeep 129700000; owner earnings 227980000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2022: growth capex 53900000; upkeep 222300000; owner earnings 530060000. Growth capex / owner earnings = 0.10168660151680942.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2023: growth capex 0; upkeep 232500000; owner earnings 99180000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); FY2026: growth capex 0; upkeep 203400000; owner earnings 243520000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); Dividend observations: [[2017,63200000],[2018,106800000],[2019,107900000],[2020,50600000],[2021,24200000],[2022,140200000],[2023,123600000],[2024,40600000],[2025,38600000],[2026,52200000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 17.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SGM.AU SharesStats.PercentInsiders = 17.602999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:35.054Z); Ten-year compound average after fade. Initial solved rate 0.21713547392937282. Price 20.61; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.9995228408548683 → FY2026 1.2462251690198003. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 10.02 per share

- 2016-11: AUD 12.50 per share

- 2016-12: AUD 12.83 per share

- 2017-01: AUD 11.19 per share

- 2017-02: AUD 12.62 per share

- 2017-03: AUD 12.36 per share

- 2017-04: AUD 12.30 per share

- 2017-05: AUD 13.33 per share

- 2017-06: AUD 15.18 per share

- 2017-07: AUD 15.54 per share

- 2017-08: AUD 14.90 per share

- 2017-09: AUD 13.48 per share

- 2017-10: AUD 13.22 per share

- 2017-11: AUD 14.02 per share

- 2017-12: AUD 15.77 per share

- 2018-01: AUD 16.48 per share

- 2018-02: AUD 17.45 per share

- 2018-03: AUD 14.44 per share

- 2018-04: AUD 16.19 per share

- 2018-05: AUD 15.95 per share

- 2018-06: AUD 16.08 per share

- 2018-07: AUD 17.15 per share

- 2018-08: AUD 12.56 per share

- 2018-09: AUD 12.65 per share

- 2018-10: AUD 11.28 per share

- 2018-11: AUD 10.70 per share

- 2018-12: AUD 10.04 per share

- 2019-01: AUD 10.37 per share

- 2019-02: AUD 11.34 per share

- 2019-03: AUD 10.71 per share

- 2019-04: AUD 10.32 per share

- 2019-05: AUD 9.48 per share

- 2019-06: AUD 10.86 per share

- 2019-07: AUD 10.91 per share

- 2019-08: AUD 11.49 per share

- 2019-09: AUD 10.40 per share

- 2019-10: AUD 9.35 per share

- 2019-11: AUD 10.79 per share

- 2019-12: AUD 10.67 per share

- 2020-01: AUD 10.73 per share

- 2020-02: AUD 9.59 per share

- 2020-03: AUD 6.11 per share

- 2020-04: AUD 7.02 per share

- 2020-05: AUD 7.78 per share

- 2020-06: AUD 7.93 per share

- 2020-07: AUD 7.95 per share

- 2020-08: AUD 8.10 per share

- 2020-09: AUD 7.58 per share

- 2020-10: AUD 9.51 per share

- 2020-11: AUD 11.34 per share

- 2020-12: AUD 13.45 per share

- 2021-01: AUD 12.23 per share

- 2021-02: AUD 13.47 per share

- 2021-03: AUD 14.84 per share

- 2021-04: AUD 15.79 per share

- 2021-05: AUD 15.58 per share

- 2021-06: AUD 16.60 per share

- 2021-07: AUD 16.42 per share

- 2021-08: AUD 15.16 per share

- 2021-09: AUD 13.33 per share

- 2021-10: AUD 14.29 per share

- 2021-11: AUD 14.15 per share

- 2021-12: AUD 16.06 per share

- 2022-01: AUD 14.21 per share

- 2022-02: AUD 18.21 per share

- 2022-03: AUD 21.56 per share

- 2022-04: AUD 20.77 per share

- 2022-05: AUD 17.64 per share

- 2022-06: AUD 13.71 per share

- 2022-07: AUD 14.69 per share

- 2022-08: AUD 15.39 per share

- 2022-09: AUD 13.38 per share

- 2022-10: AUD 12.22 per share

- 2022-11: AUD 12.99 per share

- 2022-12: AUD 13.09 per share

- 2023-01: AUD 15.26 per share

- 2023-02: AUD 15.97 per share

- 2023-03: AUD 15.51 per share

- 2023-04: AUD 15.65 per share

- 2023-05: AUD 14.20 per share

- 2023-06: AUD 15.75 per share

- 2023-07: AUD 15.10 per share

- 2023-08: AUD 15.34 per share

- 2023-09: AUD 13.53 per share

- 2023-10: AUD 12.48 per share

- 2023-11: AUD 13.38 per share

- 2023-12: AUD 15.56 per share

- 2024-01: AUD 14.52 per share

- 2024-02: AUD 12.24 per share

- 2024-03: AUD 12.72 per share

- 2024-04: AUD 12.06 per share

- 2024-05: AUD 10.61 per share

- 2024-06: AUD 10.30 per share

- 2024-07: AUD 10.18 per share

- 2024-08: AUD 10.98 per share

- 2024-09: AUD 12.66 per share

- 2024-10: AUD 12.70 per share

- 2024-11: AUD 13.11 per share

- 2024-12: AUD 11.88 per share

- 2025-01: AUD 13.28 per share

- 2025-02: AUD 14.52 per share

- 2025-03: AUD 14.63 per share

- 2025-04: AUD 14.62 per share

- 2025-05: AUD 15.14 per share

- 2025-06: AUD 15.34 per share

- 2025-07: AUD 15.24 per share

- 2025-08: AUD 14.23 per share

- 2025-09: AUD 13.37 per share

- 2025-10: AUD 15.96 per share

- 2025-11: AUD 17.10 per share

- 2025-12: AUD 17.99 per share

- 2026-01: AUD 20.28 per share

- 2026-02: AUD 21.96 per share

- 2026-03: AUD 17.90 per share

- 2026-04: AUD 20.68 per share

- 2026-05: AUD 26.82 per share

- 2026-06: AUD 27.56 per share

- 2026-07: AUD 25.59 per share

- 2026-08: AUD 24.34 per share

- 2026-09: AUD 23.91 per share

- 2026-10: AUD 21.81 per share

## Annual estimated value (AUD per share)

- FY2018: low AUD 8.42 per share, central AUD 9.43 per share, high AUD 10.78 per share

- FY2019: low AUD 9.00 per share, central AUD 10.06 per share, high AUD 11.47 per share

- FY2020: low AUD 5.70 per share, central AUD 6.39 per share, high AUD 7.30 per share

- FY2021: low AUD 10.66 per share, central AUD 12.04 per share, high AUD 13.88 per share

- FY2022: low AUD 16.60 per share, central AUD 18.83 per share, high AUD 21.80 per share

- FY2023: low AUD 9.63 per share, central AUD 11.31 per share, high AUD 13.03 per share

- FY2024: low AUD 5.65 per share, central AUD 6.33 per share, high AUD 7.24 per share

- FY2025: low AUD 5.56 per share, central AUD 6.27 per share, high AUD 7.23 per share

- FY2026: low AUD 5.69 per share, central AUD 6.44 per share, high AUD 7.45 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations