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Sims Limited

SGM.AXBasic MaterialsASX

Steel · Last scanned May 29, 2026

PriceMA150MA200
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Financials · Annual
Revenue
$7.49B
+4.1% YoY
Net Income
-$19.0M
+67.1% YoY
EBITDA
$345.1M
-9.4% YoY
Free Cash Flow
-$45.3M

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About Sims Limited

Headquartered within the basic materials sector, Sims Limited focuses on Steel services and products. Sims Limited engages in buying, processing, and selling of ferrous and non-ferrous recycled metals in Australia, China, India, Thailand, Turkey, the United States, and internationally. At a $5.18B market cap, Sims Limited ranks as a mid-cap company within basic materials. The company operates through five segments: North America Metal, Australia/New Zealand Metal, Investment in SA Recycling, Sims Lifecycle Services, and Global Trading Operations.

Key stats
Market Cap$5.18B
Fwd P/E16.93
EPS$-0.30
Beta1.17
52W Change+71.0%
Dividend Yield1.04%
ROE-2.2%
Analysis

On the balance sheet, SGM.AX has $127.6M in cash with $725.1M in obligations. The ability to service this debt comfortably depends on continued operational cash generation. The company is burning cash, with free cash flow at -$45.3M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at -2.2%, which is negative for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. Revenue has pulled back from $9.26B (2022) to $7.49B (2025), a 19% decline worth watching.

The debt-to-cash ratio suggests meaningful leverage on the balance sheet, a factor worth monitoring if credit conditions tighten. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. No single metric tells the full story. Reviewing SGM.AX's risk profile alongside its fundamentals and technical indicators provides a more complete picture.

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