Shimmick Corporation (SHIM) AI Stock Analysis

• Market Cap: $131.08M
• Dividend Yield: N/A
• Average Volume (3M): 21.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -3.64%
• EPS Growth: 53.82%
• Country: US
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 35,815,480
• 10 Day Avg. Volume: 39,794
• 30 Day Avg. Volume: 21,407
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.28
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.48
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 56.58
• Enterprise Value/Ebitda: -3.57
• 1Y Price Target: $6.00
• Price Target Upside: 63.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $3.00 ▼(-18.03% Downside)

The score is held down primarily by very weak financial performance (losses, negative equity, and negative operating/free cash flow). Offsetting this, technicals are moderately positive (price above key moving averages with positive MACD) and the earnings call shows improving core-project momentum and backlog growth, but valuation remains challenged due to continued losses and no dividend support.

Positive Factors

Backlog Growth

The significant growth in backlog indicates strong future revenue potential and reflects successful project acquisition, enhancing long-term business stability.

Core Project Revenue Increase

The increase in core project revenue demonstrates effective strategic focus and execution, contributing to sustainable growth in key business areas.

Positive Adjusted EBITDA

Achieving positive adjusted EBITDA indicates improving operational efficiency and profitability, which are crucial for long-term financial health.

Negative Factors

Negative Cash Flow

Negative cash flows highlight challenges in cash generation, potentially limiting the company's ability to invest in growth and manage debt effectively.

Declining Total Revenue

The decline in total revenue underscores ongoing challenges in overall business performance, which could impact long-term growth and profitability.

Negative Net Margin

A negative net margin indicates profitability issues, which can strain financial resources and hinder the company's ability to sustain operations and growth.

Shimmick Corporation Business Overview & Revenue Model

Company Description

Shimmick 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 Money

Shimmick Corporation generates revenue through contracts awarded for construction and engineering projects, primarily from government agencies and public-private partnerships. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and unit price contracts, allowing for various pricing mechanisms depending on the project type. Key revenue streams include contracts for highways, bridges, tunnels, and water treatment facilities. Additionally, Shimmick often collaborates with other construction firms and subcontractors, forming strategic partnerships that enhance its bidding capabilities and project execution, thereby contributing to its overall earnings.

Shimmick Corporation Financial Statement Overview

Summary

Shimmick Corporation is facing significant financial challenges. The income statement shows persistent losses and declining revenues, with negative net profit margins and operational inefficiencies. The balance sheet reveals financial instability with negative equity, and cash flow analysis indicates poor cash generation and negative cash flows. These factors collectively suggest a need for strategic restructuring and financial improvement.

Income Statement

Shimmick Corporation's income statement reveals significant challenges. The TTM data shows a negative net profit margin of -11.21% and a declining revenue growth rate of -4.64%. The company has consistently reported negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies and profitability issues. Despite these challenges, the gross profit margin has improved slightly in the TTM period compared to the previous year.

Balance Sheet

The balance sheet presents a concerning picture with negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The return on equity is positive in the TTM period, but this is due to the negative equity base rather than improved profitability. The equity ratio is also negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows a troubling trend with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is low, indicating poor cash generation relative to earnings. The free cash flow to net income ratio is positive but reflects the negative net income rather than strong cash flow performance.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	480.24M	632.81M	664.16M	572.67M
Gross Profit	-55.65M	22.37M	23.52M	-132.80M
EBITDA	-105.15M	17.12M	-23.58M	-198.03M
Net Income	-124.75M	-2.55M	3.76M	45.40M
Balance Sheet
Total Assets	233.86M	426.65M	426.65M	492.00M
Cash, Cash Equivalents and Short-Term Investments	33.73M	62.94M	63.91M	73.18M
Total Debt	25.46M	44.67M	53.24M	11.90M
Total Liabilities	268.54M	356.16M	356.16M	444.98M
Stockholders Equity	-34.52M	71.24M	71.24M	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

• Technical Analysis Sentiment: Positive
• Last Price: 3.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.66 is above the 20-day moving average (MA) of 3.14, above the 50-day MA of 2.69, and above the 200-day MA of 2.25, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 67.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHIM.

Shimmick Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLDN	76 Outperform	$1.91B	48.09	16.38%	―	12.90%	72.61%
BBCP	64 Neutral	$339.97M	71.02	3.32%	―	-8.98%	-38.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ORN	59 Neutral	$428.14M	46.50	6.31%	―	7.02%	―
SHIM	49 Neutral	$131.08M	-2.05	―	―	-3.64%	53.82%
ESOA	48 Neutral	$140.97M	371.93	0.64%	1.11%	16.80%	-98.32%
SLND	41 Neutral	$171.54M	-1.87	-84.16%	―	-9.10%	21.10%