Overview
Sims Ltd combines large-scale metal recycling with services that recover and repurpose technology equipment. The business offers exposure to recycled materials and resource reuse, but its modest 3.05% profit margin means that revenue growth alone does not tell the full story: costs, metal-market conditions and operational execution matter to the investment case. Its 1.43% dividend yield is part of the profile, alongside a share price that remains within a wide 52-week range.
Sims Ltd is an Australia-founded recycler and materials services company, with operations spanning Australia and New Zealand, North America and other international markets. It buys, processes and sells ferrous and non-ferrous metals, including steel, aluminium, copper, lead, zinc and nickel-bearing materials. Its business also includes an investment in SA Recycling, global metal trading and Sims Lifecycle Services, which supports IT equipment recycling, resale and technology infrastructure lifecycle needs. This combination links the company to both industrial materials markets and the recovery and reuse of technology equipment.
Key facts
- Ticker
- SGM
- Exchange
- AU
- ISIN
- AU000000SGM7
- Sector
- Basic Materials
- Industry
- Steel
- Country
- Australia
- Currency
- AUD
- Price
- A$22.83
- Previous close
- A$22.89
- Day change
- -A$0.06 (-0.26%)
- Market cap
- 4.4B
- 52W low
- A$13.01
- 52W high
- A$31.55
Price and trend
Last price: A$22.83
- Price
- A$22.83
- 52W range
- A$13.01 – A$31.55
- 50-day SMA
- A$24.74
- 200-day SMA
- A$23.01
- Price vs 50D SMA
- -7.70%
- Price vs 200D SMA
- -0.77%
Valuation
- P/E
- 19.24
- PEG
- 0.30
- EPS
- 1.19
- Dividend yield
- 1.47%
- Beta
- 1.19
At A$24.05, Sims has a market capitalisation of A$4.6 billion and a price-to-earnings ratio of 19.24. Revenue of A$8.0 billion and 3.50% revenue growth provide scale and modest expansion, while the 3.05% profit margin highlights the importance of cost control and trading conditions. The dividend yield is 1.43%. The share price sits within its A$13.01–A$31.55 52-week range; it is 3.37% below the 50-day moving average of A$24.89 but 5.08% above the 200-day average of A$22.89, giving a mixed near- and longer-term technical picture.
Profitability and growth
- Revenue growth
- 3.50%
- Revenue TTM
- 8.0B
- Profit margin
- 3.05%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
- Price
- A$22.83
- Target price
- A$27.01
- Target vs last price
- 18.29% from last price
The supplied share-price target is A$27.09, which is 12.64% above the last price. This is secondary context rather than a dependable forecast: Sims’ results remain tied to metal-market conditions, execution across its operations and its ability to translate revenue into profit.
Risks
Sims is exposed to fluctuations in demand and prices for recycled metals, while its international operations and mix of recycling and technology services bring operational complexity. Revenue growth is 3.50%, but the 3.05% profit margin indicates limited room for cost pressures or weaker trading conditions before profitability is affected. The share’s beta of 1.22 also points to historically higher sensitivity to market movements than a beta of 1, although this is not a forecast.
FAQ
What does Sims Ltd do?
Sims buys, processes and sells recycled ferrous and non-ferrous metals across Australia, New Zealand, North America and other international markets. It also provides IT equipment recycling and resale, and technology infrastructure lifecycle services for enterprise and hyperscale customers.
How does Sims generate revenue?
Its operations span metal recycling and trading, investment in SA Recycling, IT lifecycle services and global trading. Metal recovery and resale are central to the business, alongside services such as processing, stevedoring and equipment repurposing.
What are some key risks for Sims?
Earnings can be affected by changing prices and demand for recycled metals, as well as the costs and operational demands of processing materials across multiple markets. Its reported 3.05% profit margin also means relatively modest changes in revenue or costs may have a meaningful effect on profitability.
Does Sims pay a dividend?
The supplied figures show a dividend yield of 1.43% and a dividend per share of A$0.34. Yields can change as share prices and dividend payments vary.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
