| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 155.72 | 4053 |
| Intrinsic value (DCF) | 0.68 | -82 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 61.61 | 1543 |
Shimmick Corporation (NASDAQ: SHIM) is a leading provider of critical water and infrastructure solutions in the United States, specializing in projects that enhance public safety and environmental sustainability. Headquartered in Irvine, California, the company delivers engineering and construction services for water and wastewater treatment, flood control systems, dams, levees, coastal protection, and transportation infrastructure. Serving federal, state, and local governments, Shimmick plays a vital role in modernizing aging infrastructure while addressing climate resilience challenges. With a legacy dating back to 1990, the company operates as a subsidiary of GOHO, LLC and rebranded from SCCI National Holdings in 2023 to reflect its strategic focus on infrastructure development. As water scarcity and infrastructure investment gain national priority, Shimmick is positioned to benefit from increased government spending under programs like the Bipartisan Infrastructure Law. The company’s expertise in complex, large-scale projects makes it a key player in the $1.2 trillion U.S. infrastructure market.
Shimmick Corporation presents a high-risk, high-reward opportunity tied to U.S. infrastructure spending trends. While the company operates in a strategically important sector with strong tailwinds from federal funding programs, its financials show significant challenges—including a $124.7M net loss in the last fiscal year and negative operating cash flow. The stock’s low beta (0.87) suggests relative insulation from market volatility, but execution risks in fixed-price government contracts and margin pressures remain concerns. Investors should monitor the company’s ability to convert its $480M revenue pipeline into profitability and manage its modest debt load ($25.5M). With no dividend and negative EPS (-$4.44), SHIM may appeal only to speculative investors betting on a cyclical recovery in infrastructure spending.
Shimmick competes in the fragmented $300B+ U.S. engineering & construction sector, differentiating itself through specialized expertise in water infrastructure—a niche with high barriers to entry due to regulatory complexity and technical requirements. The company’s competitive advantage stems from decades of experience with dam safety, flood control, and wastewater projects, giving it an edge in bidding for state/federal contracts. However, its relatively small scale ($557M market cap) limits its ability to compete for mega-projects against engineering giants. Shimmick’s positioning as a pure-play infrastructure contractor contrasts with diversified peers who balance commercial and industrial work, making it more vulnerable to government budget cycles. Its recent rebranding suggests strategic refocusing, but operational challenges persist—evidenced by negative cash flow. The company could benefit from partnerships with larger firms to access bigger contracts, though this may dilute margins. Key differentiators include its California base (a high-spending infrastructure market) and niche capabilities in coastal resilience projects, which are gaining importance with climate change.