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SimsSMSMY -2.10%68 Debt-to-EBITDA is 2.41 as of Dec. 2025, which is 488% above its 10-year median of 0.41. GuruFocus rates SMSMY with a GF Score™ of 68/100 and a GF Value™ of $10.88 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 494 Steel companies, Sims ranks better than 55.47% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Sims's Debt-to-EBITDA or its related term are showing as below:
SMSMY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -11.58 Med: 0.41 Max: 2.51
Current: 2.51
During the past 13 years, the highest Debt-to-EBITDA Ratio of Sims was 2.51. The lowest was -11.58. And the median was 0.41.
SMSMY's Debt-to-EBITDA is ranked better than 55.47% of 494
companies
in the Steel industry
Industry Median: 2.865
vs SMSMY: 2.51
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Sims Debt-to-EBITDA Related Terms
Sims Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Sims's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Steel subindustry, Sims's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sims Debt-to-EBITDA vs Steel Industry
For the Steel industry and Basic Materials sector, Sims's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sims's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Dec. 2025) EBITDA data.
Sims (SMSMY) has a Debt-to-EBITDA of 2.41 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sims. This is 488% above median its historical median of 0.41. According to the industry distribution chart, Sims ranks #220 out of 494 companies in the Steel industry, placing it in the top 44.5%.
Is Sims' Debt-to-EBITDA too high?
Sims' current Debt-to-EBITDA of 2.41 is 488% above median its 10-year median of 0.41. The Steel industry median Debt-to-EBITDA is 2.87. Sims' value of 2.41 is 15.9% below this industry median. Based on the distribution chart, Sims ranks #220 out of 494 companies in the Steel industry, which is above the industry midpoint. Overall, Sims has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sims' Debt-to-EBITDA compare to NUE and STLD?
According to the Steel industry distribution chart, Sims ranks #220 out of 494 companies for Debt-to-EBITDA. This puts Sims in the upper half of its industry. The industry median Debt-to-EBITDA is 2.87. Sims' value of 2.41 is 15.9% below this benchmark. While the company's 10-year median is 0.41 vs. the industry median of 2.87, Sims has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Steel company?
The median Debt-to-EBITDA among Steel companies is 2.87, based on 494 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sims's current Debt-to-EBITDA of 2.41 is 15.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sims. For the Steel industry, the median Debt-to-EBITDA is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sims's current Debt-to-EBITDA is 2.41, which is 488% above median its own 10-year median of 0.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sims stock overvalued right now?
Based on GuruFocus' analysis, Sims (SMSMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.88, compared to a current price of $17.60 — trading 61.8% above its estimated fair value. The current Debt-to-EBITDA is 2.41, which is 488% above median its 10-year median of 0.41 and 15.9% below the Steel industry median of 2.87. Sims' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Sims (SMSMY), the current Debt-to-EBITDA is 2.41 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sims (SMSMY) Overvalued in 2026?
Based on GuruFocus' analysis, Sims stock appears to be overvalued.
The current stock price of $17.60 is trading 61.8% above its estimated GF Value™ of $10.88.
GuruFocus considers Sims to be Significantly Overvalued.
Key valuation signals for SMSMY:
Debt-to-EBITDA: 2.41 (488% above median its 10-year median of 0.41)
GF Value™: $10.88 vs. price of $17.60 (61.8% above fair value)
Industry Position: 15.9% below the Steel median (#220 of 494)
No single metric tells the full story. See the SMSMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sims is the world's largest publicly traded metal and electronics recycler, with about three-fourths of earnings generated in North America and the remainder from Australia and New Zealand. Its main business is the buying, processing, and selling of scrap metal.Sims North American segment comprises the largest ferrous scrap recycler in North America, trading as Sims Metal Management, and 50% owned SA Recycling. Almost all sales are of ferrous metals with less than 10% of sales volumes from more valuable nonferrous metals retrieved in the scrap recycling process.
68GF Score
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