Financial Analysis: Shimmick (SHIM) and Its Competitors

Shimmick (NASDAQ:SHIM) is one of 19 publicly-traded companies in the “Heavy construction, except building construction – contractors” industry, but how does it contrast to its competitors? We will compare Shimmick to similar companies based on the strength of its earnings, analyst recommendations, profitability, dividends, valuation, institutional ownership and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Shimmick and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	0	3	0	0	2.00
Shimmick Competitors	50	509	814	26	2.58

Shimmick currently has a consensus price target of $3.00, indicating a potential upside of 40.19%. As a group, “Heavy construction, except building construction – contractors” companies have a potential downside of 11.87%. Given Shimmick’s higher possible upside, research analysts plainly believe Shimmick is more favorable than its competitors.

Profitability

This table compares Shimmick and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimmick	-12.90%	-134.28%	-14.83%
Shimmick Competitors	1.93%	-2.42%	2.25%

Valuation and Earnings

This table compares Shimmick and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shimmick	$524.16 million	-$2.55 million	-0.93
Shimmick Competitors	$17.60 billion	$639.56 million	19.62

Shimmick’s competitors have higher revenue and earnings than Shimmick. Shimmick is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

6.9% of Shimmick shares are held by institutional investors. Comparatively, 58.4% of shares of all “Heavy construction, except building construction – contractors” companies are held by institutional investors. 77.0% of Shimmick shares are held by insiders. Comparatively, 21.6% of shares of all “Heavy construction, except building construction – contractors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Shimmick competitors beat Shimmick on 10 of the 12 factors compared.

About Shimmick

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, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, 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.