SimsSMSMY +1.57%67 5-Year ROIIC % is 24.06 as of Jun. 2025. GuruFocus rates SMSMY with a GF Score™ of 67/100 and a GF Value™ of $10.85 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 575 Steel companies, Sims ranks better than 83.48% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Sims's 5-Year ROIIC % for the quarter that ended in Jun. 2025 was 24.06%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Sims's 5-Year ROIIC % or its related term are showing as below:
SMSMY's 5-Year ROIIC % is ranked better than 83.48% of 575
companies
in the Steel industry
Industry Median: 2.81
vs SMSMY: 24.06
Sims (OTCPK:SMSMY) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Sims 5-Year ROIIC % Related Terms
Sims 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Sims's 5-Year ROIIC % 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 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Sims's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Sims's 5-Year ROIIC % falls into.
Sims's 5-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( -0.1788948 (Jun. 2025) - -171.636 (Jun. 2020) )
/
( 2361.848 (Jun. 2025) - 1791.098 (Jun. 2020) )
=
171.4571052
/
570.75
=
30.04%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Sims (SMSMY) has a 5-Year ROIIC % of 24.06 as of Jun. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Sims and its competitors. According to the industry distribution chart, Sims ranks #95 out of 575 companies in the Steel industry, placing it in the top 16.5%.
Is Sims' 5-Year ROIIC % too high?
Sims' current 5-Year ROIIC % is 24.06. The Steel industry median 5-Year ROIIC % is 2.81. Sims' value of 24.06 is 756.2% above this industry median. Based on the distribution chart, Sims ranks #95 out of 575 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Sims has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sims' 5-Year ROIIC % compare to NUE and STLD?
According to the Steel industry distribution chart, Sims ranks #95 out of 575 companies for 5-Year ROIIC %. This places Sims in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 2.81. Sims' value of 24.06 is 756.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Steel company?
The median 5-Year ROIIC % among Steel companies is 2.81, based on 575 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sims's current 5-Year ROIIC % of 24.06 is 756.2% above 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Sims and its competitors. For the Steel industry, the median 5-Year ROIIC % is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sims's current 5-Year ROIIC % is 24.06. 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 $10.85, compared to a current price of $17.90 — trading 65% above its estimated fair value. The current 5-Year ROIIC % is 24.06 and 756.2% above the Steel industry median of 2.81. Sims' overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Sims (SMSMY), the current 5-Year ROIIC % is 24.06 as of Jun. 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 $17.90 is trading 65% above its estimated GF Value™ of $10.85.
GuruFocus considers Sims to be Significantly Overvalued.
Key valuation signals for SMSMY:
5-Year ROIIC %: 24.06
GF Value™: $10.85 vs. price of $17.90 (65% above fair value)
Industry Position: 756.2% above the Steel median (#95 of 575)
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.
67GF Score
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