SCCI (Shimmick Construction Company) Debt-to-EBITDA : 1.61 (As of Jun. 2015)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Shimmick Construction Company Debt-to-EBITDA?

Shimmick Construction Company SCCI Debt-to-EBITDA is 1.61 as of Jun. 2015.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Shimmick Construction Company's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was $7.13 Mil. Shimmick Construction Company's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was $25.25 Mil. Shimmick Construction Company's annualized EBITDA for the quarter that ended in Jun. 2015 was $20.09 Mil. Shimmick Construction Company's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2015 was 1.61.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Shimmick Construction Company's Debt-to-EBITDA or its related term are showing as below:

SCCI's Debt-to-EBITDA is not ranked *
in the Construction industry.
Industry Median: 2.14
* Ranked among companies with meaningful Debt-to-EBITDA only.

Shimmick Construction Company  (NAS:SCCI) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Shimmick Construction Company Debt-to-EBITDA Related Terms


Shimmick Construction Company Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Shimmick Construction Company's Debt-to-EBITDA 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.

Shimmick Construction Company Debt-to-EBITDA Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Debt-to-EBITDA
17.00 1.70

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Debt-to-EBITDA N/A 0.00 1.20 1.61

SCCI vs TSSI, SWMM, SFHI: Debt-to-EBITDA Comparison

For the Engineering & Construction subindustry, Shimmick Construction Company's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Construction Company Debt-to-EBITDA vs Construction Industry

For the Construction industry and Industrials sector, Shimmick Construction Company's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Shimmick Construction Company's Debt-to-EBITDA falls into.



Shimmick Construction Company Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Shimmick Construction Company's Debt-to-EBITDA for the fiscal year that ended in Dec. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.636 + 24.115) / 15.74
=1.70

Shimmick Construction Company's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.132 + 25.251) / 20.092
=1.61

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Jun. 2015) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.61 mean?
Shimmick Construction Company (SCCI) has a Debt-to-EBITDA of 1.61 as of Jun. 2015. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Shimmick Construction Company.
Is Shimmick Construction Company's Debt-to-EBITDA too high?
Shimmick Construction Company's current Debt-to-EBITDA is 1.61. The Construction industry median Debt-to-EBITDA is 2.14. Shimmick Construction Company's value of 1.61 is 24.8% below this industry median.
How does Shimmick Construction Company's Debt-to-EBITDA compare to TSSI and SWMM?
Shimmick Construction Company's Debt-to-EBITDA of 1.61 can be compared against companies in the Construction industry. The industry median Debt-to-EBITDA is 2.14. Shimmick Construction Company's value of 1.61 is 24.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Construction company?
The median Debt-to-EBITDA among Construction companies is 2.14, based on 1,405 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shimmick Construction Company's current Debt-to-EBITDA of 1.61 is 24.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Shimmick Construction Company. For the Construction industry, the median Debt-to-EBITDA is 2.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current Debt-to-EBITDA is 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimmick Construction Company stock overvalued right now?
Shimmick Construction Company (SCCI) has a current Debt-to-EBITDA of 1.61. The current Debt-to-EBITDA is 1.61 and 24.8% below the Construction industry median of 2.14. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Shimmick Construction Company (SCCI), the current Debt-to-EBITDA is 1.61 as of Jun. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Shimmick Construction Company Business Description

Shimmick Construction Company Inc is a heavy civil construction company founded in 1990. The Company is engaged in construction activities in the western United States, with operations in California. The Company offers general construction, construction management, and design-build services to federal, state, and local public agencies and private customers in California and the Western United States. The Company operates in two segments including construction Projects and Construction Materials. The Construction Projects segment performs construction projects including new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, utilities and other infrastructure projects. The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties. The Company's customers include Caltrans, City of San Francisco, Port of Long Beach, Port of Los Angeles, City of Los Angeles, LA MTA, BART, VTA, and the Metropolitan Water District of Southern California (MWD). The Company faces competition from competitors including Balfour Beatty plc, Barnard Construction Company, Inc., Dragados S.A., Flatiron Construction Corp., Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Obayashi Corporation, Skanska AB, Traylor Bros., Inc., Tutor Perini Corporation, and Walsh Construction Co. The Company's business is subject to various federal, state and local laws and regulations relating to the environment, including those relating to discharges to air, water and land, the handling and disposal of solid and hazardous waste, the handling of underground storage tanks and the cleanup of properties affected by hazardous substances.