SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
USA - NASDAQ:SHLS - US82489W1071 - Common Stock
9.24 USD
-1.1 (-10.64%)
9.25 USD
+0.01 (+0.11%)
SHLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 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.
In the past year SHLS had a positive cash flow from operations.
In the past 5 years SHLS has always been profitable.
SHLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHLS's Return On Assets of 2.66% is fine compared to the rest of the industry. SHLS outperforms 75.00% of its industry peers.
SHLS's Return On Equity of 3.67% is fine compared to the rest of the industry. SHLS outperforms 72.83% of its industry peers.
SHLS's Return On Invested Capital of 4.09% is fine compared to the rest of the industry. SHLS outperforms 69.57% of its industry peers.
SHLS had an Average Return On Invested Capital over the past 3 years of 7.05%. This is below the industry average of 10.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROIC | 4.09% |
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
SHLS has a better Profit Margin (5.28%) than 78.26% of its industry peers.
In the last couple of years the Profit Margin of SHLS has declined.
SHLS's Operating Margin of 10.32% is fine compared to the rest of the industry. SHLS outperforms 79.35% of its industry peers.
SHLS's Operating Margin has declined in the last couple of years.
SHLS has a better Gross Margin (33.70%) than 78.26% of its industry peers.
SHLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% |
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.
The number of shares outstanding for SHLS remains at a similar level compared to 5 years ago.
SHLS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that SHLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SHLS (5.77) is better than 82.61% of its industry peers.
SHLS has a debt to FCF ratio of 10.90. This is a negative value and a sign of low solvency as SHLS would need 10.90 years to pay back of all of its debts.
SHLS has a better Debt to FCF ratio (10.90) than 66.30% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that SHLS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.23, SHLS is doing good in the industry, outperforming 61.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | 5.77 |
ROIC/WACC0.48
WACC8.61%
2.3 Liquidity
SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
SHLS's Current ratio of 2.34 is fine compared to the rest of the industry. SHLS outperforms 67.39% of its industry peers.
A Quick Ratio of 1.64 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS has a Quick ratio of 1.64. This is in the better half of the industry: SHLS outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -40.82% 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 -11.95%.
The Revenue has been growing by 22.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
3.2 Future
Based on estimates for the next years, SHLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.79% on average per year.
Based on estimates for the next years, SHLS will show a quite strong growth in Revenue. The Revenue will grow by 11.54% on average per year.
EPS Next Y23.44%
EPS Next 2Y22.67%
EPS Next 3Y21.02%
EPS Next 5Y15.79%
Revenue Next Year17.29%
Revenue Next 2Y16.03%
Revenue Next 3Y14.12%
Revenue Next 5Y11.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.86 indicates a quite expensive valuation of SHLS.
72.83% of the companies in the same industry are more expensive than SHLS, based on the Price/Earnings ratio.
SHLS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 18.61 indicates a rather expensive valuation of SHLS.
81.52% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, SHLS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLS is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 66.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 127.95 | ||
| EV/EBITDA | 34.16 |
4.3 Compensation for Growth
The 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.
SHLS's earnings are expected to grow with 21.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y22.67%
EPS Next 3Y21.02%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.24
-1.1 (-10.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners117.35%
Inst Owner Change0.27%
Ins Owners0.81%
Ins Owner Change0.93%
Market Cap1.55B
Revenue(TTM)400.35M
Net Income(TTM)21.12M
Analysts79.23
Price Target8.81 (-4.65%)
Short Float %14.5%
Short Ratio3.74
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)-2.47%
Min EPS beat(2)-23.86%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-10.95%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)8
Avg EPS beat(12)10.2%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)3.87%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)1.47%
Max Revenue beat(4)6.14%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)16.7%
PT rev (3m)30.72%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)8.71%
EPS NY rev (1m)0.44%
EPS NY rev (3m)9.94%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)9.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 18.61 | ||
| P/S | 3.86 | ||
| P/FCF | 127.95 | ||
| P/OCF | 49.21 | ||
| P/B | 2.69 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 34.16 |
EPS(TTM)0.29
EY3.14%
EPS(NY)0.5
Fwd EY5.37%
FCF(TTM)0.07
FCFY0.78%
OCF(TTM)0.19
OCFY2.03%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.36
PEG (5Y)N/A
Graham Number4.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROCE | 5.79% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.85% | ||
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% | ||
| FCFM | 3.02% |
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-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 147.99% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 57.78% | ||
| Profit Quality | 57.21% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 5.77 |
F-Score7
WACC8.61%
ROIC/WACC0.48
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)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
EPS Next Y23.44%
EPS Next 2Y22.67%
EPS Next 3Y21.02%
EPS Next 5Y15.79%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
Revenue Next Year17.29%
Revenue Next 2Y16.03%
Revenue Next 3Y14.12%
Revenue Next 5Y11.54%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year81.24%
EBIT Next 3Y35.24%
EBIT Next 5Y24.63%
FCF growth 1Y-84.63%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-62.6%
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.
What is the valuation status for SHLS stock?
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 earnings growth outlook for SHOALS TECHNOLOGIES GROUP -A?
The Earnings per Share (EPS) of SHOALS TECHNOLOGIES GROUP -A (SHLS) is expected to grow by 23.44% in the next year.