SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SHLS. SHLS was compared to 93 industry peers in the Electrical Equipment industry. SHLS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SHLS has a correct valuation and a medium growth rate.
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.
1.2 Ratios
SHLS has a better Return On Assets (2.42%) than 77.42% of its industry peers.
The Return On Equity of SHLS (3.41%) is better than 73.12% of its industry peers.
With a decent Return On Invested Capital value of 4.38%, SHLS is doing good in the industry, outperforming 72.04% of the companies in the same industry.
SHLS had an Average Return On Invested Capital over the past 3 years of 7.05%. This is below the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROIC | 4.38% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
The Profit Margin of SHLS (4.91%) is better than 78.49% of its industry peers.
In the last couple of years the Profit Margin of SHLS has declined.
The Operating Margin of SHLS (11.29%) is better than 81.72% of its industry peers.
SHLS's Operating Margin has declined in the last couple of years.
SHLS's Gross Margin of 34.39% is amongst the best of the industry. SHLS outperforms 81.72% of its industry peers.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% |
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%
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.
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
2.2 Solvency
SHLS has an Altman-Z score of 3.53. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SHLS (3.53) is better than 67.74% of its industry peers.
SHLS has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
The Debt to FCF ratio of SHLS (1.92) is better than 89.25% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that SHLS is not too dependend on debt financing.
SHLS has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.5
WACC8.79%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SHLS has no problem at all paying its short term obligations.
SHLS's Current ratio of 2.34 is fine compared to the rest of the industry. SHLS outperforms 65.59% of its industry peers.
A Quick Ratio of 1.58 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS's Quick ratio of 1.58 is fine compared to the rest of the industry. SHLS outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -45.28% in the last year.
Measured over the past years, SHLS shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
SHLS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.09%.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
SHLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.25% yearly.
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue Next Year10.55%
Revenue Next 2Y11.06%
Revenue Next 3Y10.84%
Revenue Next 5Y9.25%
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 accelerating.
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 20.10, SHLS is valued on the expensive side.
Based on the Price/Earnings ratio, SHLS is valued cheaper than 82.80% of the companies in the same industry.
SHLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 12.17, which indicates a correct valuation of SHLS.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaply inside the industry as 89.25% of the companies are valued more expensively.
SHLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
SHLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHLS is cheaper than 76.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHLS is valued cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 18.79 |
4.3 Compensation for Growth
SHLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 19.20% in the coming years.
PEG (NY)1.64
PEG (5Y)N/A
EPS Next 2Y20.47%
EPS Next 3Y19.2%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.83
+0.08 (+1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners116.37%
Inst Owner Change-0.1%
Ins Owners0.76%
Ins Owner Change14.06%
Market Cap974.60M
Analysts77.69
Price Target6.5 (11.49%)
Short Float %13.44%
Short Ratio3.14
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)0
Avg EPS beat(2)-21.11%
Min EPS beat(2)-23.86%
Max EPS beat(2)-18.35%
EPS beat(4)1
Avg EPS beat(4)-9.26%
Min EPS beat(4)-23.86%
Max EPS beat(4)25.69%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)3.62%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)4.45%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)1.15%
PT rev (3m)-0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.3%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-4.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.11%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 12.17 | ||
| P/S | 2.51 | ||
| P/FCF | 13.18 | ||
| P/OCF | 11.73 | ||
| P/B | 1.74 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)0.29
EY4.97%
EPS(NY)0.48
Fwd EY8.21%
FCF(TTM)0.44
FCFY7.59%
OCF(TTM)0.5
OCFY8.53%
SpS2.33
BVpS3.34
TBVpS2.69
PEG (NY)1.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROCE | 6.2% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 5.51% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% | ||
| FCFM | 19.03% |
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%
ROICexcg growth 3Y-14.52%
ROICexcg 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 70.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 146.25% | ||
| Profit Quality | 387.85% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.53 |
F-Score5
WACC8.79%
ROIC/WACC0.5
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)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
Revenue Next Year10.55%
Revenue Next 2Y11.06%
Revenue Next 3Y10.84%
Revenue Next 5Y9.25%
EBIT growth 1Y-31.89%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year76.96%
EBIT Next 3Y32.67%
EBIT Next 5Y22.66%
FCF growth 1Y4.24%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y10.44%
OCF growth 3YN/A
OCF growth 5Y17.31%