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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SHLS may be a bit undervalued, certainly considering the very reasonable score on growth This makes SHLS very considerable 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.
Each year in the past 5 years SHLS has been profitable.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.10%, SHLS is doing good in the industry, outperforming 79.35% of the companies in the same industry.
SHLS's Return On Equity of 6.03% is fine compared to the rest of the industry. SHLS outperforms 77.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.06%, SHLS belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is in line with the industry average of 10.22%.
| 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 83.70% of the companies in the same industry.
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 88.04% 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 85.87% 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.
The number of shares outstanding for SHLS has been increased compared to 1 year ago.
Compared to 5 years ago, SHLS has more shares outstanding
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.87 indicates that SHLS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHLS's Altman-Z score of 2.87 is fine compared to the rest of the industry. SHLS outperforms 69.57% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.71, SHLS belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
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 | 2.87 |
ROIC/WACC0.88
WACC9.14%
2.3 Liquidity
A Current Ratio of 2.08 indicates that SHLS has no problem at all paying its short term obligations.
SHLS has a Current ratio (2.08) which is in line with its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -41.27% in the last year.
The Earnings Per Share has been growing by 37.19% on average over the past years. This is a very strong growth
The Revenue has decreased by -6.74% in the past 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%-23.88%
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.
SHLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y-40.36%
EPS Next 2Y-15.44%
EPS Next 3Y-3.33%
EPS Next 5Y-0.86%
Revenue Next Year-19.6%
Revenue Next 2Y-5.21%
Revenue Next 3Y0.68%
Revenue Next 5Y4.33%
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
The Price/Earnings ratio is 12.22, which indicates a correct valuation of SHLS.
Compared to the rest of the industry, the Price/Earnings ratio of SHLS indicates a rather cheap valuation: SHLS is cheaper than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, SHLS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.53 indicates a reasonable valuation of SHLS.
SHLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHLS is cheaper than 90.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SHLS to the average of the S&P500 Index (22.70), we can say SHLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLS is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
SHLS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHLS is cheaper than 94.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 11.24 |
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 -3.33% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-15.44%
EPS Next 3Y-3.33%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.52
-0.07 (-1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners110.54%
Inst Owner Change-89.18%
Ins Owners0.79%
Ins Owner Change0.5%
Market Cap753.48M
Analysts79.26
Price Target7.2 (59.29%)
Short Float %9.51%
Short Ratio2.75
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)-7.91%
PT rev (3m)-11.19%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.78 | ||
| P/FCF | 9.07 | ||
| P/OCF | 8.12 | ||
| P/B | 1.38 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 11.24 |
EPS(TTM)0.37
EY8.19%
EPS(NY)0.43
Fwd EY9.49%
FCF(TTM)0.5
FCFY11.02%
OCF(TTM)0.56
OCFY12.32%
SpS2.54
BVpS3.27
TBVpS2.59
PEG (NY)N/A
PEG (5Y)0.33
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 | 2.87 |
F-Score5
WACC9.14%
ROIC/WACC0.88
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-40.36%
EPS Next 2Y-15.44%
EPS Next 3Y-3.33%
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-5.21%
Revenue Next 3Y0.68%
Revenue Next 5Y4.33%
EBIT growth 1Y-5.59%
EBIT growth 3Y28.44%
EBIT growth 5Y48.08%
EBIT Next Year-15.82%
EBIT Next 3Y4.7%
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%