SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SHLS • US82489W1071

10.01 USD
+0.69 (+7.4%)
At close: Feb 3, 2026
10.1 USD
+0.09 (+0.9%)
Pre-Market: 2/4/2026, 5:07:30 AM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SHLS. SHLS was compared to 91 industry peers in the Electrical Equipment industry. SHLS has an excellent financial health rating, but there are some minor concerns on its profitability. SHLS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • SHLS had positive earnings in the past year.
  • SHLS had a positive operating cash flow in the past year.
  • 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.
SHLS Yearly Net Income VS EBIT VS OCF VS FCFSHLS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.91%, SHLS is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
  • The Return On Equity of SHLS (5.64%) is better than 74.73% of its industry peers.
  • SHLS's Return On Invested Capital of 5.16% is fine compared to the rest of the industry. SHLS outperforms 73.63% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SHLS is below the industry average of 9.88%.
Industry RankSector Rank
ROA 3.91%
ROE 5.64%
ROIC 5.16%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
SHLS Yearly ROA, ROE, ROICSHLS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

  • The Profit Margin of SHLS (7.67%) is better than 80.22% of its industry peers.
  • In the last couple of years the Profit Margin of SHLS has declined.
  • Looking at the Operating Margin, with a value of 12.78%, SHLS belongs to the top of the industry, outperforming 83.52% of the companies in the same industry.
  • SHLS's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 36.82%, SHLS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
  • SHLS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.78%
PM (TTM) 7.67%
GM 36.82%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
SHLS Yearly Profit, Operating, Gross MarginsSHLS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHLS is destroying value.
  • The number of shares outstanding for SHLS has been reduced compared to 1 year ago.
  • SHLS has about the same amout of shares outstanding than it did 5 years ago.
  • SHLS has a better debt/assets ratio than last year.
SHLS Yearly Shares OutstandingSHLS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SHLS Yearly Total Debt VS Total AssetsSHLS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 4.92 indicates that SHLS is not in any danger for bankruptcy at the moment.
  • SHLS has a Altman-Z score of 4.92. This is in the better half of the industry: SHLS outperforms 73.63% of its industry peers.
  • SHLS has a debt to FCF ratio of 16.39. This is a negative value and a sign of low solvency as SHLS would need 16.39 years to pay back of all of its debts.
  • The Debt to FCF ratio of SHLS (16.39) is better than 64.84% of its industry peers.
  • A Debt/Equity ratio of 0.21 indicates that SHLS is not too dependend on debt financing.
  • The Debt to Equity ratio of SHLS (0.21) is better than 67.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 16.39
Altman-Z 4.92
ROIC/WACC0.59
WACC8.77%
SHLS Yearly LT Debt VS Equity VS FCFSHLS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

  • SHLS has a Current Ratio of 2.19. 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 2.19, SHLS is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
  • SHLS has a Quick Ratio of 1.53. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of SHLS (1.53) is better than 65.93% of its industry peers.
Industry RankSector Rank
Current Ratio 2.19
Quick Ratio 1.53
SHLS Yearly Current Assets VS Current LiabilitesSHLS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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6

3. Growth

3.1 Past

  • The earnings per share for SHLS have decreased strongly by -10.81% in the last year.
  • SHLS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.95% yearly.
  • SHLS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.68%.
  • Measured over the past years, SHLS shows a very strong growth in Revenue. The Revenue has been growing by 22.54% on average per year.
EPS 1Y (TTM)-10.81%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%50%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%32.93%

3.2 Future

  • SHLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.59% yearly.
  • Based on estimates for the next years, SHLS will show a quite strong growth in Revenue. The Revenue will grow by 12.41% on average per year.
EPS Next Y19.23%
EPS Next 2Y24.55%
EPS Next 3Y22.72%
EPS Next 5Y15.59%
Revenue Next Year19.72%
Revenue Next 2Y19.21%
Revenue Next 3Y16.45%
Revenue Next 5Y12.41%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SHLS Yearly Revenue VS EstimatesSHLS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 200M 400M 600M 800M
SHLS Yearly EPS VS EstimatesSHLS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 30.33, SHLS can be considered very expensive at the moment.
  • 76.92% of the companies in the same industry are more expensive than SHLS, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (28.18), we can say SHLS is valued inline with the index average.
  • A Price/Forward Earnings ratio of 19.55 indicates a rather expensive valuation of SHLS.
  • Based on the Price/Forward Earnings ratio, SHLS is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 25.51. SHLS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 30.33
Fwd PE 19.55
SHLS Price Earnings VS Forward Price EarningsSHLS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 74.73% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
  • 65.93% of the companies in the same industry are more expensive than SHLS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 216.71
EV/EBITDA 26.09
SHLS Per share dataSHLS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

  • SHLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • SHLS has a very decent profitability rating, which may justify a higher PE ratio.
  • SHLS's earnings are expected to grow with 22.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y24.55%
EPS Next 3Y22.72%

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0

5. Dividend

5.1 Amount

  • No dividends for SHLS!.
Industry RankSector Rank
Dividend Yield 0%

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SHOALS TECHNOLOGIES GROUP -A

NASDAQ:SHLS (2/3/2026, 8:00:02 PM)

Premarket: 10.1 +0.09 (+0.9%)

10.01

+0.69 (+7.4%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)11-04
Earnings (Next)02-24
Inst Owners116.5%
Inst Owner Change0.19%
Ins Owners0.8%
Ins Owner Change-0.09%
Market Cap1.68B
Revenue(TTM)433.99M
Net Income(TTM)33.27M
Analysts78.46
Price Target10.55 (5.39%)
Short Float %8.34%
Short Ratio3.66
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)5.54%
Min EPS beat(2)-7.85%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-7.79%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)3
Avg EPS beat(8)-6.28%
EPS beat(12)7
Avg EPS beat(12)7.56%
EPS beat(16)10
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)1.73%
Max Revenue beat(2)3.87%
Revenue beat(4)4
Avg Revenue beat(4)3.59%
Min Revenue beat(4)1.73%
Max Revenue beat(4)6.14%
Revenue beat(8)6
Avg Revenue beat(8)1.82%
Revenue beat(12)9
Avg Revenue beat(12)2.27%
Revenue beat(16)11
Avg Revenue beat(16)1.85%
PT rev (1m)0%
PT rev (3m)19.67%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-6.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)3.11%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.08%
Valuation
Industry RankSector Rank
PE 30.33
Fwd PE 19.55
P/S 3.86
P/FCF 216.71
P/OCF 47.68
P/B 2.84
P/tB 3.46
EV/EBITDA 26.09
EPS(TTM)0.33
EY3.3%
EPS(NY)0.51
Fwd EY5.11%
FCF(TTM)0.05
FCFY0.46%
OCF(TTM)0.21
OCFY2.1%
SpS2.59
BVpS3.52
TBVpS2.89
PEG (NY)1.58
PEG (5Y)N/A
Graham Number5.11
Profitability
Industry RankSector Rank
ROA 3.91%
ROE 5.64%
ROCE 7.3%
ROIC 5.16%
ROICexc 5.22%
ROICexgc 6.07%
OM 12.78%
PM (TTM) 7.67%
GM 36.82%
FCFM 1.78%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexgc growth 3Y-14.52%
ROICexgc growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 16.39
Debt/EBITDA 1.84
Cap/Depr 206.43%
Cap/Sales 6.32%
Interest Coverage 5.79
Cash Conversion 51.12%
Profit Quality 23.24%
Current Ratio 2.19
Quick Ratio 1.53
Altman-Z 4.92
F-Score5
WACC8.77%
ROIC/WACC0.59
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.81%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%50%
EPS Next Y19.23%
EPS Next 2Y24.55%
EPS Next 3Y22.72%
EPS Next 5Y15.59%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%32.93%
Revenue Next Year19.72%
Revenue Next 2Y19.21%
Revenue Next 3Y16.45%
Revenue Next 5Y12.41%
EBIT growth 1Y-16.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year79.88%
EBIT Next 3Y38.4%
EBIT Next 5Y25.52%
FCF growth 1Y-91.56%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-64.84%
OCF growth 3YN/A
OCF growth 5Y17.31%

SHOALS TECHNOLOGIES GROUP -A / SHLS FAQ

Can you provide the ChartMill fundamental rating for SHOALS TECHNOLOGIES GROUP -A?

ChartMill assigns a fundamental rating of 6 / 10 to SHLS.


Can you provide the valuation status for SHOALS TECHNOLOGIES GROUP -A?

ChartMill assigns a valuation rating of 5 / 10 to SHOALS TECHNOLOGIES GROUP -A (SHLS). This can be considered as Fairly Valued.


Can you provide the profitability details for SHOALS TECHNOLOGIES GROUP -A?

SHOALS TECHNOLOGIES GROUP -A (SHLS) has a profitability rating of 6 / 10.


What is the financial health of SHOALS TECHNOLOGIES GROUP -A (SHLS) stock?

The financial health rating of SHOALS TECHNOLOGIES GROUP -A (SHLS) is 7 / 10.