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SIM, Grupo Simec S.A.B. de C.V.

Steel capital-intensive

A metals and mining business, a price-taker on a global commodity.

Latest annual: FY2024 20-F · figures as filed, in MXN · 1 ADS = 3 ordinary shares

SIM · Grupo Simec S.A.B. de C.V.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2024

MX$33.7B

−18.2% YoY · −0% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue MX$33.7B 5-yr avg MX$44.1B

Operating margin 36.3% 5-yr avg 14.7%

ROIC 32% 5-yr avg 21%

Owner-earnings margin 13% 5-yr avg 11%

Free cash flow margin 10% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 19% and operating margin about 14% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from −1.9% to 25% over the years, so the cost line is where the needle moves. Inventory runs near 25% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the commodity price and the cost position. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 10%). By owner earnings: roughly 8% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2024

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	TTMTTMDec 2024
										Income statement
MX$27.5B	MX$28.7B	MX$35.7B	MX$34.2B	MX$35.9B	MX$55.6B	MX$54.2B	MX$41.1B	MX$33.7B	MX$33.7B	RevenueRevenue
17%	16%	14%	—	19%	28%	27%	24%	23%	—	Gross marginGross mgn
MX$3.9B	MX$3.1B	MX$4.4B	MX$5.0B	(MX$666M)	MX$13.9B	MX$11.2B	MX$6.2B	—	MX$12.2B	Operating incomeOp. inc.
14.1%	10.7%	12.4%	14.5%	−1.9%	25.0%	20.7%	15.0%	—	36.3%	Operating marginOp. mgn
MX$2.9B	MX$1.9B	MX$3.7B	MX$1.6B	(MX$2.8B)	MX$9.4B	MX$7.9B	MX$4.3B	MX$10.5B	MX$10.5B	Net incomeNet inc.
24%	37%	17%	—	—	32%	30%	29%	—	14%	Effective tax rateTax rate
										Cash flow & returns
MX$5.7B	MX$3.2B	MX$3.2B	MX$1.0B	MX$3.6B	MX$8.4B	MX$8.9B	MX$4.3B	MX$5.5B	MX$5.5B	Operating cash flowOp. cash
MX$1.4B	MX$1.5B	MX$1.1B	MX$1.1B	MX$1.5B	MX$1.2B	MX$1.1B	MX$1.0B	MX$1.1B	MX$1.1B	DepreciationDeprec.
MX$1.4B	(MX$176M)	(MX$1.5B)	(MX$1.7B)	MX$5.0B	(MX$2.2B)	(MX$30M)	(MX$1.1B)	(MX$6.0B)	(MX$6.0B)	Working capital & otherWC & other
MX$3.1B	MX$3.0B	MX$2.0B	MX$1.3B	MX$951M	MX$1.1B	MX$1.7B	MX$2.5B	MX$2.1B	MX$2.1B	CapexCapex
11.3%	10.6%	5.6%	3.7%	2.7%	1.9%	3.1%	6.1%	6.3%	6.3%	Capex / revenueCapex/rev
MX$4.3B	MX$1.7B	MX$2.1B	(MX$229M)	MX$2.7B	MX$7.3B	MX$7.8B	MX$3.2B	MX$4.5B	MX$4.5B	Owner earningsOwner earn.
15.5%	6.0%	5.9%	−0.7%	7.5%	13.2%	14.5%	7.8%	13.3%	13.3%	Owner earnings marginOE mgn
MX$2.6B	MX$145M	MX$1.2B	(MX$229M)	MX$2.7B	MX$7.3B	MX$7.3B	MX$1.8B	MX$3.4B	MX$3.4B	Free cash flowFCF
9.5%	0.5%	3.4%	−0.7%	7.5%	13.2%	13.4%	4.3%	10.2%	10.2%	Free cash flow marginFCF mgn
MX$938M	MX$279M	MX$1.6B	MX$156M	MX$42M	MX$74M	MX$90M	MX$89M	MX$126M	—	BuybacksBuybacks
10%	6%	13%	10%	-2%	36%	30%	—	—	32%	ROICROIC
9%	6%	10%	5%	-8%	23%	16%	9%	18%	18%	Return on equityROE
										Balance sheet
MX$7.5B	MX$7.3B	MX$7.0B	MX$7.4B	MX$7.7B	MX$15.1B	MX$21.5B	MX$23.6B	MX$29.2B	MX$29.2B	Cash & investmentsCash+inv
—	MX$3.9B	MX$4.8B	MX$4.2B	MX$5.1B	MX$443M	MX$564M	MX$5.7B	MX$4.5B	MX$564M	ReceivablesReceiv.
—	MX$8.3B	MX$10.1B	MX$8.2B	MX$9.1B	MX$11.7B	MX$12.8B	MX$10.2B	MX$11.2B	MX$11.2B	InventoryInvent.
—	MX$4.0B	MX$4.4B	MX$4.2B	MX$5.3B	MX$6.9B	MX$9.4B	MX$7.4B	MX$4.2B	MX$4.2B	Accounts payablePayables
—	MX$8.2B	MX$10.6B	MX$8.2B	MX$8.8B	MX$5.3B	MX$3.9B	MX$8.4B	MX$11.5B	MX$7.6B	Operating working capitalOper. WC
—	MX$22.9B	MX$26.1B	MX$22.4B	MX$24.4B	MX$35.8B	MX$43.5B	MX$41.7B	MX$46.5B	MX$46.5B	Current assetsCur. assets
—	MX$7.5B	MX$9.0B	MX$7.3B	MX$8.4B	MX$11.1B	MX$15.2B	MX$13.0B	MX$10.2B	MX$10.2B	Current liabilitiesCur. liab.
—	3.1×	2.9×	3.1×	2.9×	3.2×	2.9×	3.2×	4.6×	4.6×	Current ratioCurr. ratio
MX$41.9B	MX$46.0B	MX$48.9B	MX$44.0B	MX$45.5B	MX$57.3B	MX$67.6B	MX$66.8B	MX$73.3B	MX$73.3B	Total assetsAssets
MX$2.4B	MX$3.0B	MX$6M	MX$6M	MX$6M	MX$6M	MX$6M	MX$5M	MX$6M	MX$3.0B	Total debtDebt
(MX$5.2B)	(MX$4.3B)	(MX$7.0B)	(MX$7.4B)	(MX$7.7B)	(MX$15.1B)	(MX$21.5B)	(MX$23.6B)	(MX$29.2B)	(MX$26.2B)	Net debt / (cash)Net debt
96.7×	56.5×	267.8×	90.3×	-12.4×	159.2×	199.1×	40.2×	—	3276.6×	Interest coverageInt. cov.
MX$33.2B	MX$34.4B	MX$35.8B	MX$32.6B	MX$33.0B	MX$41.8B	MX$48.0B	MX$49.8B	MX$59.2B	MX$59.2B	Shareholders’ equityEquity
										Per share
487M	494M	490M	465M	463M	463M	462M	462M	461M	461M	Shares out (diluted)Shares
MX$56.56	MX$58.11	MX$72.88	MX$73.48	MX$77.39	MX$120.18	MX$117.13	MX$89.10	MX$72.95	MX$73.01	Revenue / shareRev/sh
MX$5.97	MX$3.84	MX$7.46	MX$3.53	MX$-6.04	MX$20.41	MX$17.00	MX$9.28	MX$22.73	MX$22.75	EPS (diluted)EPS
MX$8.79	MX$3.48	MX$4.31	MX$-0.49	MX$5.79	MX$15.82	MX$16.94	MX$6.99	MX$9.71	MX$9.72	Owner earnings / shareOE/sh
MX$5.36	MX$0.29	MX$2.51	MX$-0.49	MX$5.79	MX$15.82	MX$15.69	MX$3.83	MX$7.42	MX$7.42	Free cash flow / shareFCF/sh
MX$6.37	MX$6.15	MX$4.07	MX$2.73	MX$2.05	MX$2.30	MX$3.67	MX$5.40	MX$4.61	MX$4.61	Cap. spending / shareCapex/sh
MX$68.31	MX$69.70	MX$73.20	MX$70.06	MX$71.16	MX$90.23	MX$103.72	MX$107.81	MX$128.34	MX$128.45	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+3.2%/yr	−0.1%/yr
Owner earnings / share	+1.3%/yr	—
EPS	+18.2%/yr	+45.2%/yr
Capital spending / share	−4.0%/yr	+11.0%/yr
Book value / share	+8.2%/yr	+12.9%/yr

The record, charted

FY2016–2024

Each measure over its full record; the current point and the worst year marked.

Share count

461Mpeak FY2017

ROIC

30%low FY2020

Gross margin

23%low FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

MX$4.5Bowner earningsvs.MX$10.5Bnet incomelow FY2019

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2024

Owner-earnings bridge

FY2020–FY2024cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2024 the business earned MX$4.5B of owner earnings, the operating cash left after the MX$1.1B it takes just to hold its position. It put MX$1.1B more into growth; free cash flow, after that spending, was MX$3.4B.

Reported net incomeMX$10.5B

Owner earningsMX$4.5B · 13% of revenue

	FY2024	FY2023	FY2022	FY2021	FY2020
Reported net income	MX$10.5B	MX$4.3B	MX$7.9B	MX$9.4B	(MX$2.8B)
Depreciation & amortizationnon-cash charge added back	+MX$1.1B	+MX$1.0B	+MX$1.1B	+MX$1.2B	+MX$1.5B
Working capital & othertiming of cash in and out, other non-cash items	−MX$6.0B	−MX$1.1B	−MX$30M	−MX$2.2B	+MX$5.0B
Cash from operations	MX$5.5B	MX$4.3B	MX$8.9B	MX$8.4B	MX$3.6B
Maintenance capital expenditurethe spending needed just to hold position and volume	−MX$1.1B	−MX$1.0B	−MX$1.1B	−MX$1.1B	−MX$951M
Owner earnings	MX$4.5B	MX$3.2B	MX$7.8B	MX$7.3B	MX$2.7B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−MX$1.1B	−MX$1.5B	−MX$580M	—	—
Free cash flow	MX$3.4B	MX$1.8B	MX$7.3B	MX$7.3B	MX$2.7B
Owner-earnings marginowner earnings ÷ revenue	13%	8%	14%	13%	7%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about MX$1.1B, roughly its depreciation, the rate its assets wear out). The other MX$1.1B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

Much of fiscal 2024's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2024 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 3276.6×

Comfortable

Operating income MX$12.2B ÷ interest expense MX$4M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +MX$26.2B

Net cash

Cash MX$29.2B + ST investments MX$89M − debt MX$3.0B

What this means
Cash and short-term investments exceed every dollar of debt by MX$26.2B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 104d

Long (60+ days)

DSO 6 + DIO 157 − DPO 58 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 10%

Solid through the cycle

7-yr median, range -2%–36%; 32% latest = NOPAT MX$10.5B ÷ invested capital MX$33.1B

Industry peers: median 6%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran 32% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 8%

Solid through the cycle

9-yr median margin, range -1%–16%; latest MX$4.5B = operating cash MX$5.5B − maintenance capex MX$1.1B

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 13% of revenue this year, a 8% median across 9 years. It chose to put MX$1.1B more into growth, so free cash flow this year was MX$3.4B — the gap is investment, not weakness.
Are earnings backed by cash? 0.53×

Thinly cash-backed

Cash from ops MX$5.5B ÷ net income MX$10.5B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 47%

Returns about half

Dividends + buybacks MX$2.1B ÷ Owner Earnings MX$4.5B

What this means
Of MX$4.5B Owner Earnings, MX$2.1B (47%) went back to shareholders, MX$2.0B dividends, MX$126M buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.99×

Expanding

Capex MX$2.1B ÷ depreciation MX$1.1B

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size —

Revenue ≥ $2B (a dollar floor) · MX$33.7B

What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
Strong liquidity Pass

Current ratio ≥ 2× · 4.56×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · MX$3.0B vs MX$36.3B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (9-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 1 of 9 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +168%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are MX$16.37/share (latest year MX$22.75), the averaged base the calculator's gate runs on, and book value is MX$128.45/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2024

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 9

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 8 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 12% → 20% (3-yr avg ends)

In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.

What this means
Through the cycle the operating margin widened — about 12% early to 20% lately, median 14% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +3%/yr

What this means
Owner earnings grew about 3% a year over the record.
Worst year 2020 · −1.9% op. margin

What this means
Operations went underwater in 2020, understand why before trusting the good years.
Share count −0.7%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2024

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assetsMX$46.5B

Cash & short-term investmentsMX$29.2B
ReceivablesMX$564M
InventoryMX$11.2B
Other current assetsMX$5.5B

Current liabilitiesMX$10.2B

Debt due within a yearMX$6M
Accounts payableMX$4.2B
Other current liabilitiesMX$6.0B

Current ratio4.56×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.46×stricter: inventory excluded

Cash ratio2.87×strictest: cash alone against what's due

Working capitalMX$36.3Bthe cushion left after near-term bills

Debt due this year vs. cashMX$6M due · MX$29.2B cash covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2024 balance sheet

Deeper floors

Tangible book valueMX$61.5Bequity stripped of goodwill & intangibles

Net current asset valueMX$32.4BGraham's net-net: current assets less all liabilities

Debt incl. operating leasesMX$3.0Bno operating-lease liability tagged this quarter, so debt alone

From the company's latest filing.

How the cash was used, 2016–2024

Over the record, the business generated MX$43.9B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

ReinvestedMX$17.7B · 40%
DividendsMX$2.0B · 5%
BuybacksMX$3.4B · 8%
Retained (debt / cash)MX$20.8B · 47%

Returned to ownersMX$5.4B
16% of the owner earnings the business produced over the span, MX$2.0B as dividends and MX$3.4B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose MX$674M and cash and short-term investments rose MX$21.7B.
Average price paid for buybacks—
Buybacks ran MX$3.4B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−5.2%
The diluted count fell from 487M to 461M, so the buybacks outran the stock issued to staff.
Dividend recordMX$4.29/sh
Paid in 1 of the years on record. It was never cut over the span.
Return on what it retained7%
Of the earnings it kept rather than paid out (MX$33.9B over the span), annual owner earnings (first three years vs last three) grew MX$2.5B, so each retained MX$1 added about 0.07 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Inverting the record

Invert: instead of why Grupo Simec S.A.B. de C.V. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2024.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Steel

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
SIMGrupo Simec S.A.B. de C.V.	MX$33.7B	21%	14.3%	10%	8%
NUENucor Corporation	$32.5B	13%	9.2%	12%	9%
STLDSteel Dynamics Inc.	$18.2B	16%	11.2%	17%	9%
XUnited States Steel	$15.6B	8%	3.0%	3%	3%
GLWCorning Incorporated	$15.6B	36%	12.7%	6%	7%
AAAlcoa	$12.8B	—	4.6%	5%	2%
CMCCommercial Metals	$7.8B	16%	5.7%	9%	6%
CRSCarpenter Technology	$2.9B	17%	6.0%	5%	5%
Group median	—	16%	7.6%	7%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares (each representing three”; Grupo Simec S.A.B. de C.V. reports in MXN, so every figure in this tool is stated per ADS and translated at MXN 1 = $0.057 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in MXN.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Grupo Simec S.A.B. de C.V. has delivered.

Grupo Simec S.A.B. de C.V.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Grupo Simec S.A.B. de C.V. earns about $152M on its 7.8% median owner-earnings margin. This year’s 13.3% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($152M) Net of stock comp Steady-state · maintenance capex ($257M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’20→’24−6%/yr

Owner-earnings growth · ’16→’24+8%/yr

Owner-earnings yield—

P/E (3-yr earnings ’22–’24)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $196M on 154M shares outstanding, per the 20-F/A cover, as of 2024-12-31; net cash $1.5B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($122M) runs well above depreciation ($61M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $257M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SIM against another business →

Cite: Owner Scorecard, "Grupo Simec S.A.B. de C.V. (SIM), the owner's record," https://ownerscorecard.com/c/SIM, data as of 2026-07-09.

Manual order: ← SILC its page in the Manual SIMO →

Industry order: ← SID the Steel chapter STLD →