Shimmick (SHIM) versus Its Competitors Critical Analysis

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

Insider & 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 company insiders. Comparatively, 21.6% of shares of all “Heavy construction, except building construction – contractors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Shimmick	$514.75 million	-$2.55 million	-0.57
Shimmick Competitors	$17.63 billion	$639.56 million	20.28

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.

Analyst Recommendations

This is a summary of current ratings and price targets for Shimmick and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	0	3	0	0	2.00
Shimmick Competitors	50	509	816	26	2.58

Shimmick currently has a consensus target price of $3.00, indicating a potential upside of 35.14%. As a group, “Heavy construction, except building construction – contractors” companies have a potential downside of 7.04%. Given Shimmick’s higher probable upside, research analysts clearly 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	-20.16%	-269.03%	-25.53%
Shimmick Competitors	0.82%	-15.09%	0.95%

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.