ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shimmick Construction Company's annualizedNet Income for the quarter that ended in Jun. 2015 was $11.40 Mil.
Shimmick Construction Company's average Total Assets over the quarter that ended in Jun. 2015 was $252.46 Mil. Therefore, Shimmick Construction Company's annualized ROA % for the quarter that ended in Jun. 2015 was 4.52%.
The historical rank and industry rank for Shimmick Construction Company's ROA % or its related term are showing as below:
SCCI's ROA % is not ranked *
in the Construction industry.
Industry Median: 2.79 * Ranked among companies with meaningful ROA % only.
Shimmick Construction Company (NAS:SCCI) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Shimmick Construction Company ROA % Related Terms
Shimmick Construction Company ROA % Historical Data
* 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 ROA % Chart
Shimmick Construction Company Annual Data
Trend
Dec13
Dec14
ROA %
0.49
4.04
Shimmick Construction Company Semi-Annual Data
Dec13
Jun14
Dec14
Jun15
ROA %
0.00
2.46
5.49
4.52
SCCI vs TSSI, SWMM, SFHI: ROA % Comparison
For the Engineering & Construction subindustry, Shimmick Construction Company's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Construction Industry
For the Construction industry and Industrials sector, Shimmick Construction Company's ROA % distribution charts can be found below:
* The bar in red indicates where Shimmick Construction Company's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Jun. 2015) net income data.
ROA % is displayed in the 30-year financial page.
Shimmick Construction Company (SCCI) has a ROA % of 4.52% as of Jun. 2015. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's ROA % too high?
Shimmick Construction Company's current ROA % is 4.52%. The Construction industry median ROA % is 2.79. Shimmick Construction Company's value of 4.52% is 62% above this industry median.
How does Shimmick Construction Company's ROA % compare to TSSI and SWMM?
Shimmick Construction Company's ROA % of 4.52% can be compared against companies in the Construction industry. The industry median ROA % is 2.79. Shimmick Construction Company's value of 4.52% is 62% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shimmick Construction Company's current ROA % of 4.52% is 62% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shimmick Construction Company and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current ROA % is 4.52%. 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 ROA % of 4.52%. The current ROA % is 4.52% and 62% above the Construction industry median of 2.79. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Shimmick Construction Company (SCCI), the current ROA % is 4.52% 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.
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