SCCI (Shimmick Construction Company) Operating Margin %: 3.64% (As of Jun. 2015)


What is Shimmick Construction Company Operating Margin %?

Shimmick Construction Company SCCI Operating Margin % is 3.64% as of Jun. 2015.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shimmick Construction Company's Operating Income for the six months ended in Jun. 2015 was $8.80 Mil. Shimmick Construction Company's Revenue for the six months ended in Jun. 2015 was $242.00 Mil. Therefore, Shimmick Construction Company's Operating Margin % for the quarter that ended in Jun. 2015 was 3.64%.

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


SCCI's Operating Margin % is not ranked *
in the Construction industry.
Industry Median: 5.89
* Ranked among companies with meaningful Operating Margin % only.

Shimmick Construction Company's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Shimmick Construction Company's Operating Income for the six months ended in Jun. 2015 was $8.80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $16.23 Mil.

Shimmick Construction Company  (NAS:SCCI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.

Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Shimmick Construction Company Operating Margin % Related Terms

Shimmick Construction Company Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shimmick Construction Company's Operating 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 Operating Margin % Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Operating Margin %
-1.55 3.38

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Operating Margin % 0.00 2.71 3.81 3.64

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

For the Engineering & Construction subindustry, Shimmick Construction Company's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry

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

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


Shimmick Construction Company Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=10.796 / 319.629
=3.38 %

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

Operating Margin %=Operating Income (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=8.802 / 241.995
=3.64 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 3.64% mean?
Shimmick Construction Company (SCCI) has a Operating Margin % of 3.64% as of Jun. 2015. Operating margin is the ratio of total operating income to net sales. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's Operating Margin % too high?
Shimmick Construction Company's current Operating Margin % is 3.64%. The Construction industry median Operating Margin % is 5.89. Shimmick Construction Company's value of 3.64% is 38.2% below this industry median.
How does Shimmick Construction Company's Operating Margin % compare to TSSI and SWMM?
Shimmick Construction Company's Operating Margin % of 3.64% can be compared against companies in the Construction industry. The industry median Operating Margin % is 5.89. Shimmick Construction Company's value of 3.64% is 38.2% 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shimmick Construction Company's current Operating Margin % of 3.64% is 38.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Shimmick Construction Company and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current Operating Margin % is 3.64%. 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 Operating Margin % of 3.64%. The current Operating Margin % is 3.64% and 38.2% below the Construction industry median of 5.89. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Shimmick Construction Company (SCCI), the current Operating Margin % is 3.64% 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.