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Shimmick Corporation (SHIM)
NASDAQ:SHIM
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Shimmick Corporation
(NASDAQ:SHIM)
34Underperform
Shimmick Corporation (SHIM) vs. S&P 500 (SPY)
Market Cap
$59.46M
Dividend YieldN/A
Average Volume (3M)16.85K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-24.11%
EPS Growth-4214.51%
CountryUS
Employees1,200
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-4.31
Shares Outstanding34,370,872
10 Day Avg. Volume21,746
30 Day Avg. Volume16,846
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.63
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-1.74
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside44.51% Upside
Rating ConsensusHold
Number of Analyst Covering1
Shimmick Corporation Business Overview & Revenue Model
Company DescriptionShimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, dam, levee, flood control system, pump station, and coastal protection infrastructure; and mass transit, bridge, and military infrastructure projects. It serves federal, state, and local governments. The company was formerly known as SCCI National Holdings, Inc. and changed its name to Shimmick Corporation in September 2023. Shimmick Corporation was founded in 1990 and is headquartered in Irvine, California. Shimmick Corporation operates as a subsidiary of GOHO, LLC.
How the Company Makes MoneyShimmick Corporation generates revenue primarily through contracts for infrastructure projects, which are often awarded by government agencies and private entities. The company's key revenue streams include the construction and maintenance of transportation networks, water infrastructure, and energy facilities. Revenue is earned based on completed project milestones, with additional income from long-term service agreements and maintenance contracts. Strategic partnerships with engineering firms and technology providers enhance Shimmick's capabilities and contribute to its competitive edge in the infrastructure sector.
Shimmick Corporation Financial Statement Overview
Summary
Shimmick Corporation's financial statements depict significant challenges. The income statement shows negative net income and declining revenue, the balance sheet reflects insolvency risks with negative equity, and cash flow statements indicate liquidity issues with negative operating cash flows. This combination suggests a high-risk financial position.Income Statement
Shimmick Corporation's income statement highlights significant challenges with profitability. The company has consistently posted negative net income, and recent gross profit margins show substantial losses, indicating cost control issues. Additionally, the revenue growth trajectory is negative, with a sharp decline in total revenue from 2024 to 2025. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and a need for restructuring.―
Balance Sheet
The balance sheet reflects a weak financial position with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is indeterminate due to negative equity, which is a significant concern. The overall equity ratio is negative, implying that liabilities exceed assets. These factors suggest financial instability and a high-risk profile for creditors and investors.20
Cash Flow
The cash flow statement reveals substantial negative operating cash flows, indicating poor cash generation from core operations. Free cash flow is also negative and deteriorating, reflecting higher capital expenditures without corresponding cash inflows. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. These factors point to liquidity issues and potential challenges in maintaining cash reserves.―
| Breakdown | |||
| Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 480.24M | 632.81M | 664.16M | 572.67M | Gross Profit |
| -55.65M | 22.37M | 23.52M | -132.80M | EBIT |
| -119.33M | 435.00K | 12.91M | -211.89M | EBITDA |
| -105.15M | -24.63M | -23.58M | -198.03M | Net Income Common Stockholders |
| -124.75M | -2.55M | 3.76M | 45.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 33.73M | 62.94M | 77.76M | 73.18M | Total Assets |
| 233.86M | 426.65M | 446.80M | 492.00M | Total Debt |
| 15.99M | 44.67M | 14.44M | 11.90M | Net Debt |
| -17.74M | -18.27M | -63.32M | -61.27M | Total Liabilities |
| 268.54M | 356.16M | 395.20M | 444.98M | Stockholders Equity |
| -34.52M | 71.24M | 52.64M | 46.59M |
| Cash Flow | Free Cash Flow | ||
| -31.74M | -95.14M | -13.53M | -56.91M | Operating Cash Flow |
| -21.26M | -88.10M | -3.08M | -53.98M | Investing Cash Flow |
| 15.04M | 22.05M | 4.20M | 136.17M | Financing Cash Flow |
| -21.90M | 47.88M | -931.00K | -294.00K |
Shimmick Corporation Technical Analysis
Positive
1.73
Price Trends
1.70
Positive
2.15
Negative
2.43
Negative
Market Momentum
<0.01
Negative
56.33
Neutral
62.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHIM, the sentiment is Positive. The current price of 1.73 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.70, and below the 200-day MA of 2.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHIM.
Shimmick Corporation Risk Analysis
Shimmick Corporation disclosed 70 risk factors in its most recent earnings report. Shimmick Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shimmick Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $286.37M | 118.11 | 2.25% | ― | 15.58% | ― | |
68 Neutral | $631.24M | 11.29 | 5.92% | ― | 28.76% | -9.56% | |
66 Neutral | $648.01M | 11.39 | 13.73% | ― | 29.35% | 309.98% | |
56 Neutral | $344.81M | ― | -20.38% | ― | -7.47% | -74.28% | |
56 Neutral | $4.37B | 5.27 | -19.28% | 5.13% | 19.96% | -54.67% | |
43 Neutral | $174.38M | ― | -50.99% | ― | -15.53% | -427.61% | |
34 Underperform | $59.46M | ― | -679.42% | ― | -24.11% | -4214.51% |
* General Sector Average
Performance Comparison
SHIM
Shimmick Corporation
1.73
-1.97
-53.24%
AMRC
Ameresco
12.00
-10.69
-47.11%
GLDD
Great Lakes Dredge & Dock
9.62
2.58
36.65%
MTRX
Matrix Service Company
12.49
0.53
4.43%
ORN
Orion Group Holdings
7.24
-0.58
-7.42%
SLND
Southland Holdings
3.23
-1.05
-24.53%
Shimmick Corporation Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q3-2024)
| % Change Since: 1.76%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for Shimmick Corporation in Q3 2024. While the company successfully settled the Golden Gate Bridge project claim and completed significant infrastructure projects, the quarter also saw a net loss and decreased revenue. The transition to new leadership and a focus on improving backlog quality are positive steps forward, but challenges remain with legacy projects and system expenses.Q3-2024 Updates
Positive Updates
Settlement of Golden Gate Bridge Project Claim
Shimmick Corporation reached a settlement agreement on the Golden Gate Bridge project, receiving $97 million as reimbursement for costs incurred. This settlement marks the resolution of the last major outstanding claim of the Legacy Loss Projects.
CEO Transition and New Leadership
Steven Richards announced his retirement, with Ural Yal appointed as the new CEO. Ural Yal has extensive knowledge of the California and water infrastructure market, positioning the company for future growth.
Smith Canal Gate Project Completion
Shimmick completed the Smith Canal Gate project, enhancing Stockton's flood resilience and protecting homes and businesses from high water events.
Improved Backlog Composition
Shimmick's backlog remains strong at $834 million, with 85% of the backlog consisting of Shimmick Projects, up from 80% the previous quarter.
Efforts to Improve Gross Margin
Gross margin recognized on Shimmick Projects in Q3 was 6%, showing sequential improvement from earlier quarters in 2024.
Negative Updates
Net Loss in Third Quarter
Shimmick reported a net loss of $2 million for the third quarter of 2024, attributed to ERP system impairment and a decrease in gain on sale of assets compared to the previous year.
Decrease in Revenue
The third quarter revenue was $166 million, down from $175 million the previous year, attributed to decreased activity on existing jobs and jobs winding down.
Negative Gross Margin on Legacy Projects
Legacy Projects recorded a negative gross margin due to ongoing legal fees and cost overruns. The GGB settlement did improve the gross margin but did not fully offset the negative impact.
ERP System Expenses
A one-time, primarily noncash expense of $16 million was recognized due to enhancing the current ERP system instead of implementing a new platform.
Company Guidance
In the third quarter 2024 earnings call, Shimmick Corporation provided detailed guidance focusing on their financial metrics and strategic direction. The company reported revenues of $166 million with a net loss of $2 million, contrasting with $175 million in revenue and a net income of $35 million in the same quarter of the previous year. Adjusted EBITDA was $30 million, down from $42 million year-over-year. Shimmick's backlog was robust at $834 million, with Shimmick Projects contributing 85% compared to 80% the previous quarter. The company anticipates Shimmick Projects' revenues to remain flat for the fiscal year ending January 3, 2025, with gross margins forecasted between 4% to 7%. Legacy Projects, however, are expected to generate $90 million to $95 million in revenue with negative gross margins of 40% to 50%, mainly due to settlement impacts and cost overruns. The company sees positive momentum with a $97 million settlement from their Golden Gate Bridge project and looks forward to leveraging these proceeds to improve liquidity and operational capacity.Shimmick Corporation Corporate Events
Executive/Board Changes
Shimmick Corporation Appoints New CFO Todd Yoder
Positive
Apr 8, 2025
On April 8, 2025, Shimmick Corporation announced the appointment of Todd Yoder as Executive Vice President and Chief Financial Officer, effective April 14, 2025. Yoder brings extensive financial leadership experience from his previous roles in the construction industry, which is expected to support Shimmick’s growth and market positioning. Additionally, Amanda Mobley, who served as interim CFO since June 2024, has been appointed Chief Accounting Officer, continuing her contributions to the company’s financial department.
Spark’s Take on SHIM Stock
According to Spark, TipRanks’ AI Analyst, SHIM is a Underperform.
Shimmick Corporation faces significant financial challenges, including negative earnings, insolvency concerns, and liquidity issues. Technical analysis shows bearish momentum, and valuation metrics indicate a lack of earnings appeal. While there are some positive developments from recent earnings calls, such as project settlements and leadership changes, they are insufficient to offset the broader financial difficulties. These factors collectively result in a low overall stock score, suggesting caution for potential investors.
To see Spark’s full report on SHIM stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.