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Shimmick Corporation (SHIM)
NASDAQ:SHIM
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Shimmick Corporation
(NASDAQ:SHIM)
29Underperform
Shimmick Corporation (SHIM) vs. S&P 500 (SPY)
Market Cap
$58.13M
Dividend YieldN/A
Average Volume (3M)11.68K
Price to Earnings (P/E)―
Beta (1Y)0.06
Revenue Growth-24.11%
EPS Growth-4206.81%
CountryUS
Employees1,300
SectorGeneral
Sector StrengthN/A
IndustryConstruction
Share Statistics
EPS (TTM)-4.30
Shares Outstanding33,796,920
10 Day Avg. Volume14,771
30 Day Avg. Volume11,684
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)1.10
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside47.93% 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.
How the Company Makes Moneynull
Shimmick Corporation Financial Statement Overview
Summary
Shimmick Corporation's financial statements indicate significant financial distress. The company is struggling with declining revenues, high leverage, and negative cash flows. This suggests an urgent need for strategic restructuring to stabilize and improve financial health.Income Statement
The income statement shows a concerning trend with negative net income and declining revenue over the periods. The TTM figures highlight a drastic decline in revenue by 18.7% from the previous year, coupled with negative gross and net profit margins. This signals profitability challenges for Shimmick Corporation.35
Negative
Balance Sheet
The balance sheet reveals high leverage with a significant decline in stockholders' equity, bringing the debt-to-equity ratio to unsustainable levels. The equity ratio dropped to 0.33%, indicating heavy reliance on debt financing. However, the company maintains some liquidity with cash reserves, albeit reduced over the periods.40
Negative
Cash Flow
The cash flow statement shows negative operating cash flow consistently across periods. The free cash flow has deteriorated, indicating cash generation issues. The free cash flow to net income ratio is unfavorable, showing cash flow challenges in supporting profitability.30
Negative
| Breakdown | |||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 514.74M | 632.81M | 664.16M | 572.67M | Gross Profit |
| -34.57M | 22.37M | 23.52M | -132.80M | EBIT |
| -78.58M | 435.00K | 12.91M | -211.89M | EBITDA |
| -82.71M | -24.63M | -23.58M | -198.03M | Net Income Common Stockholders |
| -103.77M | -2.55M | 3.76M | 45.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 62.94M | 62.94M | 77.76M | 73.18M | Total Assets |
| 426.65M | 426.65M | 446.80M | 492.00M | Total Debt |
| 44.67M | 44.67M | 14.44M | 11.90M | Net Debt |
| -18.27M | -18.27M | -63.32M | -61.27M | Total Liabilities |
| 356.16M | 356.16M | 395.20M | 444.98M | Stockholders Equity |
| 71.24M | 71.24M | 52.64M | 46.59M |
| Cash Flow | Free Cash Flow | ||
| -100.37M | -95.14M | -13.53M | -56.91M | Operating Cash Flow |
| -89.51M | -88.10M | -3.08M | -53.98M | Investing Cash Flow |
| 27.29M | 22.05M | 4.20M | 136.17M | Financing Cash Flow |
| 25.64M | 47.88M | -931.00K | -294.00K |
Shimmick Corporation Technical Analysis
Negative
1.69
Price Trends
2.21
Negative
2.32
Negative
2.44
Negative
Market Momentum
-0.16
Negative
32.42
Neutral
54.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHIM, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 2.21, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 32.42 is Neutral, neither overbought nor oversold. The STOCH value of 54.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.65B | 27.13 | 26.35% | 0.96% | 8.89% | 669.67% | |
73 Outperform | $6.74B | 18.24 | 26.45% | 1.18% | 11.30% | ― | |
72 Outperform | $6.28B | 3.13 | 72.85% | ― | 5.43% | 2094.12% | |
72 Outperform | $39.03B | 43.68 | 13.32% | 0.14% | 13.36% | 20.00% | |
61 Neutral | $4.52B | 19.97 | 20.35% | ― | 12.61% | 7.43% | |
55 Neutral | $4.66B | -12.92 | -1.12% | 4.93% | 29.69% | -75.72% | |
29 Underperform | $58.13M | ― | -679.42% | ― | -24.11% | -4206.81% |
* General Sector Average
Performance Comparison
SHIM
Shimmick Corporation
1.67
-5.32
-76.11%
ACM
Aecom Technology
94.99
-2.48
-2.54%
DY
Dycom
159.15
17.18
12.10%
FLR
Fluor
37.67
-3.23
-7.90%
KBR
KBR
50.04
-11.06
-18.10%
PWR
Quanta Services
271.10
15.14
5.91%
Shimmick Corporation Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -0.59% | 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.Highlights
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.
Lowlights
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 Corp Announces CEO Retirement and Successor
Neutral
Nov 18, 2024
Shimmick Corp., a leader in water infrastructure, announced the retirement of CEO Steve Richards after a 43-year career and the appointment of Ural Yal as his successor, effective December 2, 2024. Yal, with 26 years in infrastructure construction, previously led major projects at Flatiron Construction. His expertise and leadership are expected to drive Shimmick’s growth in new markets, focusing on operational excellence and client satisfaction.
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.