Critical Survey: Shimmick (SHIM) and Its Competitors

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 peers? We will compare Shimmick to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, risk, dividends and profitability.

Profitability

This table compares Shimmick and its peers’ 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	1.76%	-2.88%	2.08%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Shimmick	$524.16 million	-$2.55 million	-0.89
Shimmick Competitors	$17.59 billion	$639.56 million	20.83

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

Analyst Ratings

This is a summary of recent recommendations for Shimmick and its peers, as reported 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, suggesting a potential upside of 47.78%. As a group, “Heavy construction, except building construction – contractors” companies have a potential downside of 9.64%. Given Shimmick’s higher possible upside, equities research analysts clearly believe Shimmick is more favorable than its peers.

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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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

Shimmick Company Profile

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.