SHOALS TECHNOLOGIES GROUP -A (SHLS)
US82489W1071 - Common Stock
Overall SHLS gets a fundamental rating of 6 out of 10. We evaluated SHLS against 88 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make SHLS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
SHLS had a positive operating cash flow in the past year.
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
The Return On Assets of SHLS (4.10%) is better than 79.55% of its industry peers.
SHLS has a Return On Equity of 6.03%. This is in the better half of the industry: SHLS outperforms 78.41% of its industry peers.
SHLS has a Return On Invested Capital of 8.06%. This is amongst the best in the industry. SHLS outperforms 82.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is in line with the industry average of 9.38%.
| 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 84.09% of its industry peers.
In the last couple of years the Profit Margin of SHLS has remained more or less at the same level.
SHLS has a better Operating Margin (15.75%) than 89.77% of its industry peers.
In the last couple of years the Operating Margin of SHLS has grown nicely.
SHLS's Gross Margin of 37.20% is amongst the best of the industry. SHLS outperforms 86.36% of its industry peers.
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.
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 3.11 indicates that SHLS is not in any danger for bankruptcy at the moment.
SHLS has a Altman-Z score of 3.11. This is in the better half of the industry: SHLS outperforms 71.59% of its industry peers.
SHLS has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
The Debt to FCF ratio of SHLS (1.71) is better than 86.36% 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.
Looking at the Debt to Equity ratio, with a value of 0.26, SHLS is in line with its industry, outperforming 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.73
WACC10.99%
2.3 Liquidity
A Current Ratio of 2.08 indicates that SHLS has no problem at all paying its short term obligations.
With a Current ratio value of 2.08, SHLS perfoms like the industry average, outperforming 55.68% 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's Quick ratio of 1.36 is in line compared to the rest of the industry. SHLS outperforms 53.41% of 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%.
SHLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.19% yearly.
Looking at the last year, SHLS shows a decrease in Revenue. The Revenue has decreased by -6.74% in the last year.
The Revenue has been growing by 36.34% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, SHLS will show a decrease in Earnings Per Share. The EPS will decrease by -0.86% on average per year.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.84, SHLS is valued correctly.
Based on the Price/Earnings ratio, SHLS is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (27.20), we can say SHLS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.93, the valuation of SHLS can be described as very reasonable.
SHLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHLS is cheaper than 89.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. SHLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
SHLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHLS is cheaper than 82.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHLS is valued cheaply inside the industry as 94.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
SHLS has an outstanding profitability rating, which may justify a higher PE ratio.
SHLS's earnings are expected to decrease with -2.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-15.43%
EPS Next 3Y-2.84%
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 (12/20/2024, 8:00:01 PM)
After market: 5.12 0 (0%)5.12
+0.58 (+12.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners122.31%
Inst Owner Change-12.04%
Ins Owners0.77%
Ins Owner Change7.47%
Market Cap853.50M
Analysts78.52
Price Target7.87 (53.71%)
Short Float %11.27%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-2.96%
PT rev (3m)-15.84%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-53.21%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-30.77%
Revenue NY rev (1m)2.74%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 11.93 | ||
| P/S | 2.02 | ||
| P/FCF | 10.28 | ||
| P/OCF | 9.19 | ||
| P/B | 1.57 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)0.37
EY7.23%
EPS(NY)0.43
Fwd EY8.38%
FCF(TTM)0.5
FCFY9.73%
OCF(TTM)0.56
OCFY10.88%
SpS2.54
BVpS3.27
TBVpS2.59
PEG (NY)N/A
PEG (5Y)0.37
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 | 3.11 |
F-Score5
WACC10.99%
ROIC/WACC0.73
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-15.9%
EBIT Next 3Y5.73%
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%