SIM

Basic Materials

Grupo Simec, S.A.B. de C.V. · Steel · $5B

UQS Score — Balanced Preset
32.1
Below Average

Grupo Simec, S.A.B. de C.V. scores 32.1/100 using the Balanced preset.

UQS vs Basic Materials Sector
SIM
32.1
Sector avg
38.2
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Strong
Valuation
Neutral

What is Grupo Simec, S.A.B. de C.V.?

Grupo Simec is a Mexican steel manufacturer with operations spanning Mexico, the United States, Brazil, Canada, and broader Latin America. Founded in 1993 and headquartered in Guadalajara, Mexico, it operates as a subsidiary of Industrias CH.

Grupo Simec manufactures and distributes special bar quality steel, steel alloys, and structural steel products. Its engineered steel goes into automotive components such as axles and crankshafts, while structural products serve the non-residential construction market. The company also exports to Central and South America and Europe, broadening its revenue base beyond its home market.

Grupo Simec was founded in 1993 and is headquartered in Guadalajara, Mexico.

  • Special bar quality (SBQ) steel and steel alloys
  • Structural steel — I-beams, channels, and angles
  • Hot rolled bars, rebars, and cold finished bars
  • Electro-welded wire mesh and wire rods

Is SIM a Good Stock to Buy?

UQS Score rates SIM as Below Average overall.

The Risk pillar stands out as the clearest positive — Grupo Simec carries a Strong risk profile relative to many peers in the Basic Materials sector, suggesting a more conservative balance sheet posture. Valuation lands at Neutral, meaning the stock is neither obviously cheap nor stretched by the model's assessment.

Both the Moat and Growth pillars register as Weak, reflecting limited competitive differentiation and subdued expansion signals — meaningful headwinds for long-term compounders.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does SIM pay dividends?

No — Grupo Simec, S.A.B. de C.V. does not currently pay a dividend.

Grupo Simec does not currently pay a dividend. For a capital-intensive steel manufacturer, retaining cash can support equipment investment and operational flexibility. Income-focused investors should factor this into their assessment, as there is no yield component to offset price volatility.

When does SIM report earnings?

Grupo Simec reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company's recent results reflect the cyclical nature of the steel industry, where input costs and end-market demand — particularly from automotive and construction — drive outcomes. Growth signals remain muted across the UQS model's assessment.

For the most recent quarter's results, visit Grupo Simec's investor relations page directly.

SIM Price History

+44.2% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Grupo Simec, S.A.B. de C.V.?

$
Today it would be worth
$22,065
That's a +121% total return, or +17.1% annualized.

Based on Grupo Simec, S.A.B. de C.V.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

SIM Long-term Outlook

The UQS Growth pillar for SIM is rated Weak, pointing to limited near-term expansion momentum. The Strong Risk profile does provide a degree of downside cushion, but a Weak Moat suggests the business lacks pricing power to sustain margins through commodity cycles. The fundamental outlook is cautious until growth signals improve.

Growth drivers

  • Exposure to automotive manufacturing demand for engineered SBQ steel
  • Non-residential construction activity across Mexico and the US
  • Export diversification into South America and Europe

Key risks

  • Commodity steel price volatility compressing margins
  • Weak competitive moat limiting pricing power versus peers
  • Cyclical end-market downturns in automotive and construction

SIM vs Peers

Grupo Simec competes in the North American steel market alongside several larger, more diversified producers.

CLFSIM scores higher
Cleveland-Cliffs Inc.

Cleveland-Cliffs is a vertically integrated US steel and iron ore producer with a significantly larger domestic footprint and exposure to flat-rolled automotive steel.

CMCSIM scores lower
Commercial Metals Company

Commercial Metals focuses on long steel products and rebar for construction, operating an extensive network of US and European mini-mills.

TXSIM scores lower
Ternium S.A.

Ternium is a major Latin American flat steel producer with broad regional reach, competing with Simec in Mexico and across the broader Latin American market.

Frequently Asked Questions

What does Grupo Simec do?

Grupo Simec manufactures and distributes special bar quality steel, structural steel, rebars, wire rods, and related products. Its steel serves automotive component makers and non-residential construction projects across Mexico, the United States, Brazil, Canada, and export markets in Latin America and Europe.

Does SIM pay dividends?

No, Grupo Simec does not currently pay a dividend. The company retains earnings, which is common for capital-intensive manufacturers that prioritize operational investment. Investors seeking regular income should note the absence of a yield component.

When does SIM report earnings?

Grupo Simec reports on a quarterly cadence typical for US-listed equities. For confirmed dates and the most recent results, check the company's official investor relations page rather than relying on third-party estimates.

Is SIM a good stock to buy?

The UQS Score rates SIM as Below Average. The Risk pillar is Strong, but both the Moat and Growth pillars are Weak — a combination that warrants careful consideration. The full pillar breakdown is available to UQS Pro members for a more complete picture.

Is SIM overvalued?

The UQS Valuation pillar for SIM is rated Neutral, suggesting the stock is neither clearly underpriced nor significantly stretched relative to the model's assessment. Valuation in cyclical steel names can shift quickly with commodity prices, so ongoing monitoring matters.

How does SIM compare to its competitors?

Compared to peers like Cleveland-Cliffs, Commercial Metals, and Ternium, Grupo Simec is a mid-cap niche player focused on SBQ and structural steel. Larger competitors benefit from greater scale and diversification, which can translate into stronger moat and growth profiles.

What is SIM's market cap bracket?

Grupo Simec is classified as a mid-cap company. This places it in a range where liquidity is generally adequate for most retail investors, though it is considerably smaller than the major North American integrated steel producers.

Who founded Grupo Simec?

Grupo Simec was founded in 1993 and operates as a subsidiary of Industrias CH, S.A.B. de C.V. Detailed founding history and leadership information is publicly available through the company's official disclosures and investor relations materials.

Is SIM a long-term quality investment?

As a long-term quality indicator, the UQS Score rates SIM as Below Average — driven by Weak Moat and Growth pillars. A Strong Risk profile provides some stability, but sustained long-term compounding typically requires stronger competitive advantages and growth signals than currently reflected.

What sector does SIM belong to?

Grupo Simec operates in the Basic Materials sector, specifically within the steel manufacturing industry. This sector is highly cyclical, with performance closely tied to commodity prices, industrial demand, and macroeconomic conditions in key end markets like automotive and construction.

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Pro Analysis

SIM — Score History

253035404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 12 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202632.028.710.02.0100.046.4-2.6
May 7, 202634.634.010.00.6100.056.7-0.3
May 3, 202634.934.010.00.6100.058.6+0.5
Apr 26, 202634.434.010.00.6100.055.10.0
Apr 22, 202634.434.010.00.6100.055.5-1.6
Apr 19, 202636.040.010.00.7100.055.50.0
Apr 18, 202636.040.010.00.7100.056.0-0.7
Apr 14, 202636.740.010.00.7100.060.4-7.1
Apr 13, 202643.840.050.00.9100.041.1+7.1
Apr 12, 202636.740.010.00.7100.060.4-0.3

SIM — Pillar Breakdown

Quality

28.7/100 (25%)

Grupo Simec, S.A.B. de C.V. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

2.0/100 (20%)

Grupo Simec, S.A.B. de C.V. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Risk

100.0/100 (15%)

Grupo Simec, S.A.B. de C.V. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

47.1/100 (15%)

Grupo Simec, S.A.B. de C.V. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

10/100 (25%)

Grupo Simec, S.A.B. de C.V. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SIM.

Score Composition

Quality
28.7×25%7.2
Growth
2.0×20%0.4
Risk
100.0×15%15.0
Valuation
47.1×15%7.1
Moat
10.0×25%2.5
Total
32.1Below Average

Financial Data

More Stock Analysis

How is the SIM UQS Score Calculated?

The UQS (Unified Quality Score) for Grupo Simec, S.A.B. de C.V. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Grupo Simec, S.A.B. de C.V.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Grupo Simec, S.A.B. de C.V. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.