Investment Thesis
Shimmick Corp is in severe financial distress with negative stockholders' equity of -$56.6M, indicating technical insolvency. The company is burning cash operationally with -$65.1M operating cash flow and -$71.5M free cash flow while unable to cover interest from operations, creating an existential threat to the business.
Strengths
- Positive cash balance of $20M provides near-term liquidity runway
- Modest revenue growth of 2.6% YoY in a challenging construction sector
- EPS improved 82% YoY from deeply negative base showing trajectory shift
Risks
- Negative stockholders' equity of -$56.6M indicates technical insolvency and negative net worth
- Negative operating cash flow of -$65.1M demonstrating ongoing operational cash burn unsustainable without external financing
- Current ratio of 0.89x reveals acute liquidity stress and difficulty meeting short-term obligations
- Interest coverage ratio of -2.9x shows inability to service debt from operations
- Extremely low gross margin of 6.8% severely constrains operational profitability
- Negative free cash flow of -$71.5M with no clear path to profitability
Key Metrics to Watch
- Stockholders' equity trend and path to positive net worth
- Operating cash flow inflection to positive territory
- Gross margin expansion from current 6.8% level
- Cash burn rate and remaining liquidity runway
- Interest coverage ratio and debt service capability
Financial Metrics
Revenue
492.8M
Net Income
-25.6M
EPS (Diluted)
$-0.74
Free Cash Flow
-71.5M
Total Assets
218.8M
Cash
20.0M
Profitability Ratios
Gross Margin
6.8%
Operating Margin
-3.9%
Net Margin
-5.2%
ROE
N/A
ROA
-11.7%
FCF Margin
-14.5%
Balance Sheet & Liquidity
Current Ratio
0.89x
Quick Ratio
0.89x
Debt/Equity
N/A
Debt/Assets
125.9%
Interest Coverage
-2.91x
Long-term Debt
64.5M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-16T20:27:24.378936 |
Data as of: 2026-01-02 |
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