Shimmick shares closed at US$3.94, down about 6% on the day, even though the company just posted one of its cleanest quarters on margins since listing. The headline is simple. Revenue came in at about US$107 million and Shimmick still reported a net loss of roughly US$5 million, yet consolidated gross margin reached 12% as legacy problem projects faded into the background.

If you care about the next few hours, the red screen hurts. If you care about the next few years, the emerging margin story and nearly US$1b backlog will matter far more than today’s price dip.

Is Shimmick at a rare bargain on 0.4x P/S with a model value above the current US$3.94 share price, or is the balance sheet risk doing the talking? See what the detailed…