SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD
SHLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. While SHLS has a great profitability rating, 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
SHLS had positive earnings in the past year.
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
The Return On Assets of SHLS (4.10%) is better than 79.12% of its industry peers.
SHLS has a Return On Equity of 6.03%. This is in the better half of the industry: SHLS outperforms 78.02% of its industry peers.
SHLS has a Return On Invested Capital of 8.06%. This is amongst the best in the industry. SHLS outperforms 82.42% 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 10.46%.
| 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
With an excellent Profit Margin value of 7.78%, SHLS belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SHLS has remained more or less at the same level.
SHLS has a Operating Margin of 15.75%. This is amongst the best in the industry. SHLS outperforms 89.01% of its industry peers.
In the last couple of years the Operating Margin of SHLS has grown nicely.
With an excellent Gross Margin value of 37.20%, SHLS belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| 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
SHLS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SHLS has been increased compared to 1 year ago.
SHLS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
2.2 Solvency
SHLS has an Altman-Z score of 2.93. This is not the best score and indicates that SHLS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.93, SHLS is in the better half of the industry, outperforming 68.13% 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.
SHLS's Debt to FCF ratio of 1.71 is amongst the best of the industry. SHLS outperforms 86.81% of its industry peers.
SHLS has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
SHLS has a Debt to Equity ratio (0.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.69
WACC11.68%
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.
SHLS has a Current ratio (2.08) which is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS has a Quick ratio (1.36) which is in line with its industry peers.
| 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.
Measured over the past years, SHLS shows a very strong growth in Revenue. The Revenue has been growing by 36.34% on average per year.
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%-23.88%
3.2 Future
SHLS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.86% yearly.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y-40.45%
EPS Next 2Y-15.43%
EPS Next 3Y-2.84%
EPS Next 5Y-0.86%
Revenue Next Year-19.6%
Revenue Next 2Y-5.29%
Revenue Next 3Y0.65%
Revenue Next 5Y4.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 12.78, SHLS is valued correctly.
Based on the Price/Earnings ratio, SHLS is valued cheaper than 91.21% of the companies in the same industry.
SHLS is valuated cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.02, the valuation of SHLS can be described as very reasonable.
92.31% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
SHLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
SHLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHLS is cheaper than 86.81% of the companies in the same industry.
95.60% of the companies in the same industry are more expensive than SHLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
The excellent profitability rating of SHLS may justify a higher PE ratio.
A cheap valuation may be justified as SHLS's earnings are expected to decrease with -2.84% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-15.43%
EPS Next 3Y-2.84%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHOALS TECHNOLOGIES GROUP -A
NASDAQ:SHLS (1/24/2025, 6:29:56 PM)
After market: 4.79 +0.06 (+1.27%)4.73
+0.06 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners122.31%
Inst Owner Change-0.05%
Ins Owners0.77%
Ins Owner Change5.32%
Market Cap788.49M
Analysts79.26
Price Target7.82 (65.33%)
Short Float %11.77%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.59%
Min EPS beat(2)-20.51%
Max EPS beat(2)25.69%
EPS beat(4)2
Avg EPS beat(4)-4.77%
Min EPS beat(4)-31.3%
Max EPS beat(4)25.69%
EPS beat(8)6
Avg EPS beat(8)15.23%
EPS beat(12)9
Avg EPS beat(12)7.62%
EPS beat(16)12
Avg EPS beat(16)7.75%
Revenue beat(2)2
Avg Revenue beat(2)4.52%
Min Revenue beat(2)1.47%
Max Revenue beat(2)7.56%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-5.77%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)1.61%
Revenue beat(12)7
Avg Revenue beat(12)1.27%
Revenue beat(16)8
Avg Revenue beat(16)0.63%
PT rev (1m)-0.62%
PT rev (3m)-13.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-53.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-30.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.02 | ||
| P/S | 1.87 | ||
| P/FCF | 9.49 | ||
| P/OCF | 8.49 | ||
| P/B | 1.45 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 11.55 |
EPS(TTM)0.37
EY7.82%
EPS(NY)0.43
Fwd EY9.07%
FCF(TTM)0.5
FCFY10.53%
OCF(TTM)0.56
OCFY11.78%
SpS2.54
BVpS3.27
TBVpS2.59
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 6.03% | ||
| ROCE | 9.38% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 9.76% | ||
| OM | 15.75% | ||
| PM (TTM) | 7.78% | ||
| GM | 37.2% | ||
| FCFM | 19.65% |
ROA(3y)8.91%
ROA(5y)11.48%
ROE(3y)46.53%
ROE(5y)N/A
ROIC(3y)9.13%
ROIC(5y)12.05%
ROICexc(3y)9.32%
ROICexc(5y)12.53%
ROICexgc(3y)12.43%
ROICexgc(5y)41.83%
ROCE(3y)10.64%
ROCE(5y)14.04%
ROICexcg growth 3Y-48.69%
ROICexcg growth 5Y-15.92%
ROICexc growth 3Y-22.33%
ROICexc growth 5Y11.23%
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%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 80.85% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 3.47 | ||
| Cash Conversion | 118% | ||
| Profit Quality | 252.49% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.93 |
F-Score5
WACC11.68%
ROIC/WACC0.69
Cap/Depr(3y)57.18%
Cap/Depr(5y)44.95%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.27%
EPS 3Y4.99%
EPS 5Y37.19%
EPS Q2Q%-60%
EPS Next Y-40.45%
EPS Next 2Y-15.43%
EPS Next 3Y-2.84%
EPS Next 5Y-0.86%
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y40.71%
Revenue growth 5Y36.34%
Sales Q2Q%-23.88%
Revenue Next Year-19.6%
Revenue Next 2Y-5.29%
Revenue Next 3Y0.65%
Revenue Next 5Y4.77%
EBIT growth 1Y-5.59%
EBIT growth 3Y28.44%
EBIT growth 5Y48.08%
EBIT Next Year-15.82%
EBIT Next 3Y5.69%
EBIT Next 5Y7.09%
FCF growth 1Y2226.19%
FCF growth 3Y16.98%
FCF growth 5Y119.7%
OCF growth 1Y1120.04%
OCF growth 3Y19.36%
OCF growth 5Y98.29%