SCCI (Shimmick Construction Company) Gross Margin %: 7.91% (As of Jun. 2015)


What is Shimmick Construction Company Gross Margin %?

Shimmick Construction Company SCCI Gross Margin % is 7.91% as of Jun. 2015.

Gross Margin % is calculated as gross profit divided by its revenue. Shimmick Construction Company's Gross Profit for the six months ended in Jun. 2015 was $19.13 Mil. Shimmick Construction Company's Revenue for the six months ended in Jun. 2015 was $242.00 Mil. Therefore, Shimmick Construction Company's Gross Margin % for the quarter that ended in Jun. 2015 was 7.91%.


The historical rank and industry rank for Shimmick Construction Company's Gross Margin % or its related term are showing as below:


SCCI's Gross Margin % is not ranked *
in the Construction industry.
Industry Median: 20.705
* Ranked among companies with meaningful Gross Margin % only.

Shimmick Construction Company had a gross margin of 7.91% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shimmick Construction Company was 0.00% per year.

Shimmick Construction Company  (NAS:SCCI) 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 Construction Company had a gross margin of 7.91% for the quarter that ended in Jun. 2015 => 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 Construction Company Gross Margin % Related Terms

Shimmick Construction Company Gross Margin % Historical Data

* Premium members only.

The historical data trend for Shimmick Construction Company'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.

Shimmick Construction Company Gross Margin % Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Gross Margin %
2.08 8.20

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Gross Margin % 0.00 8.05 8.30 7.91

SCCI vs TSSI, SWMM, SFHI: Gross Margin % Comparison

For the Engineering & Construction subindustry, Shimmick Construction Company'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 Construction Company Gross Margin % vs Construction Industry

For the Construction industry and Industrials sector, Shimmick Construction Company's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shimmick Construction Company's Gross Margin % falls into.


Shimmick Construction Company Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Shimmick Construction Company's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=26.2 / 319.629
=(Revenue - Cost of Goods Sold) / Revenue
=(319.629 - 293.409) / 319.629
=8.20 %

Shimmick Construction Company's Gross Margin for the quarter that ended in Jun. 2015 is calculated as


Gross Margin % (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=19.1 / 241.995
=(Revenue - Cost of Goods Sold) / Revenue
=(241.995 - 222.864) / 241.995
=7.91 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 7.91% mean?
Shimmick Construction Company (SCCI) has a Gross Margin % of 7.91% as of Jun. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's Gross Margin % too high?
Shimmick Construction Company's current Gross Margin % is 7.91%. The Construction industry median Gross Margin % is 20.71. Shimmick Construction Company's value of 7.91% is 61.8% below this industry median.
How does Shimmick Construction Company's Gross Margin % compare to TSSI and SWMM?
Shimmick Construction Company's Gross Margin % of 7.91% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.71. Shimmick Construction Company's value of 7.91% is 61.8% 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 Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shimmick Construction Company's current Gross Margin % of 7.91% is 61.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Shimmick Construction Company and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current Gross Margin % is 7.91%. 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 Gross Margin % of 7.91%. The current Gross Margin % is 7.91% and 61.8% below the Construction industry median of 20.71. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Shimmick Construction Company (SCCI), the current Gross Margin % is 7.91% 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.