Gross Margin % is calculated as gross profit divided by its revenue. Shimmick's Gross Profit for the
three
months ended in Dec. 2023 was $-0.4 Mil. Shimmick's Revenue for the
three
months ended in Dec. 2023 was $138.1 Mil. Therefore, Shimmick's Gross Margin % for the quarter that ended in Dec. 2023 was -0.29%.
The historical rank and industry rank for Shimmick's Gross Margin % or its related term are showing as below:
SHIM'
s Gross Margin % Range Over the Past 10 Years
Min: -23.19 Med: 3.54 Max: 5.3
Current: 5.3
During the past 3 years, the highestGross Margin % of Shimmick was 5.30%. The lowest was -23.19%. And the median was 3.54%.
SHIM's Gross Margin % is ranked worse than 88.7% of 1611
companies
in the Construction industry
Industry Median: 19.33
vs SHIM: 5.30
Shimmick had a gross margin of -0.29% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shimmick was 0.00% per year.
Shimmick Gross Margin % Historical Data
The historical data trend for Shimmick's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Shimmick's Gross Margin %
For the Engineering & Construction subindustry, Shimmick's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shimmick's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Shimmick's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shimmick's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Shimmick (NAS:SHIM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Shimmick had a gross margin of -0.29% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Shimmick Gross Margin % Related Terms
Thank you for viewing the detailed overview of Shimmick's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shimmick Corp is a leading provider of water and other critical infrastructure solutions nationwide. It selectively focuses on the following types of infrastructure projects: Water Treatment, Water Resources, and Other Critical Infrastructure. In water treatment projects the company expands, rehabilitates, upgrades, builds and rebuilds water and wastewater treatment infrastructure, including desalination plants. In water resources projects company builds, expands, and improves water storage and conveyance, dams, levees, flood control systems, pump stations, and coastal protection. In Other Critical Infrastructure projects, It builds, retrofits, expands, rehabilitates, operates, and maintains its nation's critical infrastructure, including mass transit, bridges, and military infrastructure.
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