Grupo SimecPerimeter Solutions

Grupo Simec vs Perimeter Solutions

This page compares Grupo Simec and Perimeter Solutions, analysing their business models, financial performance, and market context. It presents objective information to help readers understand how eac...

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Mexico Tariffs: What's Next for Local Industry?

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Published: September 12, 2025

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Japan's Tariff-Driven Supply Chain Shift

Japan's Tariff-Driven Supply Chain Shift

As US tariffs threaten Japanese exports, manufacturers are looking to relocate production to tariff-friendly countries like Mexico and Canada. This carefully selected group of stocks represents companies positioned to benefit from this major supply chain realignment.

Published: June 30, 2025

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Mexico's Economic Turnaround

Mexico's Economic Turnaround

A carefully curated selection of companies poised to benefit from Mexico's improving economic stability. Professional investors have identified these stocks based on their potential to capitalize on a stronger peso, increased foreign investment, and rising domestic demand.

Published: June 30, 2025

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Mexico's Export Boom

Mexico's Export Boom

Mexico's surprising trade surplus signals a major economic shift, creating exciting investment opportunities. This collection features carefully selected companies positioned to benefit from the growing trend of nearshoring and Mexico's expanding role as North America's manufacturing powerhouse.

Published: June 30, 2025

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Mexico's Stable Rise

Mexico's Stable Rise

Mexico's economy is showing impressive signs of stability with a narrowing current account deficit. This collection features companies set to thrive from a potentially stronger peso, increased consumer spending, and renewed investor confidence in Mexico's economic future.

Published: June 30, 2025

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Investment Analysis

Pros

  • Grupo Simec is a major manufacturer of special bar quality and structural steel products across diverse international markets including Mexico, US, Brazil, and Canada.
  • The company showed a significant earnings increase of around 145% in 2024 despite a revenue decline, indicating improved profitability efficiency.
  • Its steel products serve various engineered applications like automotive parts and non-residential construction, offering product diversification.

Considerations

  • Revenue declined by over 18% in 2024 compared to the previous year, reflecting pressure on sales volume or pricing.
  • Grupo Simec's low beta of 0.16 suggests limited stock price volatility, which could indicate lower growth expectations or market appetite.
  • It lacks reported dividend payments, which may deter income-focused investors.

Pros

  • Perimeter Solutions has a diverse product portfolio spanning firefighting products, retardants, and specialty lubricant additives with applications in various industries.
  • The company’s specialized equipment and services support extensive government and commercial firefighting operations globally.
  • It operates in two complementary segments, Fire Safety and Specialty Products, with exposure to growth areas like battery technologies and environmental safety.

Considerations

  • Perimeter Solutions operates highly regulated chemical and specialty markets, which may pose compliance and operational risks.
  • Its stock valuation metrics show mixed signals with a moderate P/E ratio but relatively higher price-to-book compared to sector averages, indicating valuation considerations.
  • The ESG risk rating positions the company in the lower half of its industry group, which could attract scrutiny amid rising sustainability standards.

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