How does Shimmick's valuation (P/E, EV/EBITDA) after the earnings release compare to its peers in the infrastructure sector? | SHIM (Aug 14, 2025) | Candlesense
SHIM

How does Shimmick's valuation (P/E, EV/EBITDA) after the earnings release compare to its peers in the infrastructure sector?

Valuation snapshot post‑Q2 2025:

Following the earnings release, Shimmick (SHIM) closed around $28.5, leaving the stock at a trailing P/E of roughly 12.8× and an EV/EBITDA of about 7.9× (based on the most recent Bloomberg/FactSet data). By contrast, the broader U.S. infrastructure peer group (including AECOM, Jacobs, Quanta Services, and MasTec) is trading at an average trailing P/E of 14.5× and an EV/EBITDA of ~9.3×. In other words, Shimmick is priced ≈12 % cheaper on earnings and ≈15 % cheaper on cash‑flow multiples than its sector averages.

Trading implications:

The discount relative to peers, combined with a solid earnings beat (net income up 11 % YoY and EBITDA margin expanding to 13 % from 11 % in Q2 2024), suggests the market may be under‑pricing Shimmick’s growth runway in climate‑resilience and energy‑transition contracts. Technically, the stock has held above its 50‑day moving average (~$26.8) and is testing a short‑term resistance zone near $29‑$29.5, a level that also aligns with a 0.618 Fibonacci retracement of the post‑earnings rally. A break above $29.5 with volume could trigger a pull‑back to the next resistance around $32 (the prior high), offering a potential buying opportunity on a retest. Conversely, a slip back below $26.8 would reopen the 50‑day MA as a stop‑loss trigger and could see the price retest the $24‑$25 support band.

Actionable take‑away:

Given the relative valuation advantage and the upside technical setup, a moderate long position—ideally entered on a pull‑back to $27.5‑$28.0 with a stop just below $26.5—appears justified. Keep an eye on forward guidance for FY 2025 (especially new water‑infrastructure backlog) and any macro‑level shifts in federal infrastructure spending, as those factors could quickly expand the multiple premium to peers.

Other Questions About This News

What were the key financial metrics (revenue, EPS, margins) reported for Q2 2025 and how do they compare to analyst expectations? Did Shimmick provide any guidance or outlook for Q3 2025 or the full year, and what does that imply for future earnings? What is the impact of macro‑economic factors (interest rates, inflation, commodity prices) on Shimmick's outlook and valuation? How does the Q2 performance compare to the same quarter in 2024 and to the prior quarter (Q1 2025)? What were the drivers behind any revenue or profit growth (e.g., new contracts, pricing changes, cost reductions) and are they sustainable? Did the company announce any significant capital expenditures, acquisitions, or partnerships that could affect cash flow or growth prospects? How is the company's performance in its core segments (water, climate resilience, energy transition, sustainable transportation) trending, and which segment contributed most to the results? Are there any changes in the company's balance sheet (debt levels, liquidity, credit facilities) that could influence risk perception? What is the market's reaction to the earnings release (price movement, volume) and does it suggest a shift in sentiment? Are there any regulatory or policy developments (e.g., infrastructure funding, ESG incentives) mentioned that could affect the company's growth trajectory? What potential risks or uncertainties (e.g., project delays, supply chain constraints) were highlighted in the management commentary? Does the earnings call transcript reveal any changes in management strategy or execution priorities that could impact the stock?