Company Overview
Shimmick Corporation operates within the Industrials sector, specifically serving the Engineering & Construction industry, where it delivers turnkey infrastructure solutions focused on the water, energy, climate resiliency, and transportation markets across the United States. The company's core business activities include expanding, rehabilitating, upgrading, building, and rebuilding critical water and wastewater treatment infrastructure, such as desalination plants, while implementing related technical solutions for its clients. In terms of scale, Shimmick reports a market capitalization of $128.13M and generates annual revenue of $492.84M, supported by a workforce of 971 employees. These valuation and revenue figures indicate that the company holds a mid-cap profile, suggesting it is a specialized player in the infrastructure space rather than a broad-market utility giant, with its financial size reflecting a focused operational footprint within the engineering and construction niche.
Financial Health
The company reported a revenue of $492.84M for the trailing twelve months, yet this generated a net income of $-25,584,000 and an EBITDA of $-7,986,000, revealing a significant gap where operating costs and expenses substantially exceed gross profits before interest and taxes. This negative EBITDA highlights a strained cost structure where the company is burning cash through its operations despite substantial top-line activity. The free cash flow stands at $-89,984,496, which indicates a severe lack of financial flexibility, as the company is consuming its liquid assets to fund daily operations and capital expenditures rather than generating surplus cash. Profitability is further constrained by a gross margin of 6.8%, an operating margin of -0.9%, and a profit margin of -5.2%, all of which demonstrate that the company struggles to convert its high revenue volume into retained earnings. On the balance sheet, Shimmick holds $19.97M in cash against $81.08M in debt, and while the debt-to-equity ratio is listed as N/A, the absolute debt load relative to cash reserves suggests a leveraged position that requires careful management. Liquidity is tight, evidenced by a current ratio of 0.89, which indicates that the company's current assets are insufficient to cover its current liabilities without relying on external financing or asset sales. Finally, the return on equity is N/A due to the negative equity base, while the return on assets is -5.8%, revealing that management is currently unable to generate positive returns on the capital invested in the business.
Valuation Assessment
Valuation multiples reflect the company's current earnings challenges, with a trailing P/E ratio of N/A and a forward P/E of 9.34, implying that the market is pricing expectations based on future earnings potential rather than current profitability. The price-to-book ratio is -2.26, which indicates that the stock is trading below its book value, a common characteristic for distressed or unprofitable companies where the market assigns no premium over the underlying asset value. Alternative valuation metrics such as the price-to-sales ratio of 0.26 and an EV/EBITDA of -23.70 suggest that the market is valuing the firm primarily on its revenue generation capability while heavily discounting it for its negative earnings power. Regarding trading range, the 52-week high is $4.47 and the 52-week low is $1.30, meaning the stock has experienced significant volatility within this band over the past year. The beta of 0.59 indicates that the stock's price volatility is lower than the broader market, suggesting it moves less aggressively than the S&P 500 during periods of market turbulence.
Growth & Income
Growth metrics show a revenue growth rate of -3.0% year-over-year, while earnings growth is N/A due to negative earnings, indicating that the company is contracting in terms of sales and unable to demonstrate earnings expansion. Since the company does not pay a dividend, as shown by a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute cash to shareholders and instead retains its capital, although current cash burn limits the capacity for significant reinvestment. The absence of a dividend yield means the company reinvests earnings—or rather, attempts to fund operations—into growth initiatives rather than returning value through dividends to investors. Overall, the growth and income profile is defined by negative revenue momentum and a complete lack of dividend income, positioning the stock as a high-risk, non-income investment dependent on a future turnaround in profitability and revenue stability.