SHOALS TECHNOLOGIES GROUP -A (SHLS)
US82489W1071 - Common Stock
Overall SHLS gets a fundamental rating of 6 out of 10. We evaluated SHLS against 91 industry peers in the Electrical Equipment industry. While SHLS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SHLS. With these ratings, SHLS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
In the past year SHLS had a positive cash flow from operations.
SHLS had positive earnings in each of the past 5 years.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
1.2 Ratios
SHLS has a Return On Assets of 4.10%. This is in the better half of the industry: SHLS outperforms 79.78% of its industry peers.
SHLS has a better Return On Equity (6.03%) than 78.65% of its industry peers.
SHLS has a Return On Invested Capital of 8.06%. This is amongst the best in the industry. SHLS outperforms 83.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHLS is in line with the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 6.03% | ||
| ROIC | 8.06% |
ROA(3y)8.91%
ROA(5y)11.48%
ROE(3y)46.53%
ROE(5y)N/A
ROIC(3y)9.13%
ROIC(5y)12.05%
1.3 Margins
SHLS has a Profit Margin of 7.78%. This is amongst the best in the industry. SHLS outperforms 84.27% of its industry peers.
SHLS's Profit Margin has been stable in the last couple of years.
SHLS's Operating Margin of 15.75% is amongst the best of the industry. SHLS outperforms 89.89% of its industry peers.
SHLS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.20%, SHLS belongs to the top of the industry, outperforming 87.64% of the companies in the same industry.
SHLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.75% | ||
| PM (TTM) | 7.78% | ||
| GM | 37.2% |
OM growth 3Y-8.72%
OM growth 5Y8.61%
PM growth 3Y-24.84%
PM growth 5Y-0.27%
GM growth 3Y-3.15%
GM growth 5Y4.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLS is destroying value.
Compared to 1 year ago, SHLS has more shares outstanding
The number of shares outstanding for SHLS has been increased compared to 5 years ago.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.83 indicates that SHLS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.83, SHLS is doing good in the industry, outperforming 68.54% of the companies in the same industry.
The Debt to FCF ratio of SHLS is 1.71, which is an excellent value as it means it would take SHLS, only 1.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SHLS (1.71) is better than 86.52% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that SHLS is not too dependend on debt financing.
SHLS's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. SHLS outperforms 50.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.75
WACC10.77%
2.3 Liquidity
SHLS has a Current Ratio of 2.08. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.08, SHLS is in line with its industry, outperforming 57.30% of the companies in the same industry.
SHLS has a Quick Ratio of 1.36. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
SHLS has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
SHLS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.27%.
The Earnings Per Share has been growing by 37.19% on average over the past years. This is a very strong growth
Looking at the last year, SHLS shows a decrease in Revenue. The Revenue has decreased by -6.74% in the last year.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.34% yearly.
EPS 1Y (TTM)-41.27%
EPS 3Y4.99%
EPS 5Y37.19%
EPS Q2Q%-60%
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y40.71%
Revenue growth 5Y36.34%
Sales Q2Q%-23.87%
3.2 Future
SHLS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.26% yearly.
Based on estimates for the next years, SHLS will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
EPS Next Y-39.3%
EPS Next 2Y-12.61%
EPS Next 3Y-2.4%
EPS Next 5Y5.26%
Revenue Next Year-21.74%
Revenue Next 2Y-3.97%
Revenue Next 3Y1.45%
Revenue Next 5Y6.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.93, SHLS is valued correctly.
Based on the Price/Earnings ratio, SHLS is valued cheaper than 88.76% of the companies in the same industry.
SHLS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 10.44 indicates a reasonable valuation of SHLS.
92.13% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SHLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
86.52% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHLS is valued cheaper than 94.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.61 | ||
| EV/EBITDA | 10.98 |
4.3 Compensation for Growth
The excellent profitability rating of SHLS may justify a higher PE ratio.
SHLS's earnings are expected to decrease with -2.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-12.61%
EPS Next 3Y-2.4%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHOALS TECHNOLOGIES GROUP -A
NASDAQ:SHLS (11/22/2024, 10:21:09 AM)
4.785
+0.38 (+8.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap797.66M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 6.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.75% | ||
| PM (TTM) | 7.78% | ||
| GM | 37.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-41.27%
EPS 3Y4.99%
EPS 5Y
EPS Q2Q%
EPS Next Y-39.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y40.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
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