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SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis

USA - NASDAQ:SHLS - US82489W1071 - Common Stock

7.29 USD
-0.26 (-3.44%)
Last: 9/19/2025, 5:20:02 PM
7.25 USD
-0.04 (-0.55%)
After Hours: 9/19/2025, 5:20:02 PM
Fundamental Rating

6

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 has an excellent financial health rating, but there are some minor concerns on its profitability. SHLS is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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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.
In the past 5 years SHLS has always been profitable.
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

SHLS has a better Return On Assets (2.66%) than 77.17% of its industry peers.
SHLS's Return On Equity of 3.67% is fine compared to the rest of the industry. SHLS outperforms 70.65% of its industry peers.
SHLS has a Return On Invested Capital of 4.09%. This is in the better half of the industry: SHLS outperforms 70.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHLS is below the industry average of 9.86%.
Industry RankSector 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%
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

SHLS has a better Profit Margin (5.28%) than 79.35% 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.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS has a better Gross Margin (33.70%) than 76.09% of its industry peers.
SHLS's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
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

SHLS has an Altman-Z score of 4.49. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
SHLS has a better Altman-Z score (4.49) than 75.00% of its industry peers.
The Debt to FCF ratio of SHLS is 10.90, which is on the high side as it means it would take SHLS, 10.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.90, SHLS is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that SHLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, SHLS is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 10.9
Altman-Z 4.49
ROIC/WACC0.48
WACC8.56%
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 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
SHLS has a better Current ratio (2.34) than 66.30% of its industry peers.
SHLS has a Quick Ratio of 1.64. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
SHLS has a Quick ratio of 1.64. This is in the better half of the industry: SHLS outperforms 63.04% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.64
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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5

3. Growth

3.1 Past

The earnings per share for SHLS have decreased strongly by -40.82% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
Looking at the last year, SHLS shows a very negative growth in Revenue. The Revenue has decreased by -11.95% in the last year.
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)-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

The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
Based on estimates for the next years, SHLS will show a quite strong growth in Revenue. The Revenue will grow by 11.63% on average per year.
EPS Next Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue Next Year17.29%
Revenue Next 2Y15.89%
Revenue Next 3Y13.63%
Revenue Next 5Y11.63%

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.
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 200M 400M 600M
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 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.14 indicates a quite expensive valuation of SHLS.
78.26% of the companies in the same industry are more expensive than SHLS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. SHLS is around the same levels.
The Price/Forward Earnings ratio is 14.95, which indicates a correct valuation of SHLS.
89.13% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
SHLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
Industry RankSector Rank
PE 25.14
Fwd PE 14.95
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 72.83% of the companies listed in the same industry.
67.39% 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 100.95
EV/EBITDA 25.57
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.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 18.38% in the coming years.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y21.57%
EPS Next 3Y18.38%

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0

5. Dividend

5.1 Amount

No dividends for SHLS!.
Industry RankSector Rank
Dividend Yield N/A

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SHOALS TECHNOLOGIES GROUP -A

NASDAQ:SHLS (9/19/2025, 5:20:02 PM)

After market: 7.25 -0.04 (-0.55%)

7.29

-0.26 (-3.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)08-05 2025-08-05/bmo
Earnings (Next)11-10 2025-11-10/amc
Inst Owners117.86%
Inst Owner Change6.76%
Ins Owners0.81%
Ins Owner Change5.02%
Market Cap1.22B
Analysts79.23
Price Target7.55 (3.57%)
Short Float %12.46%
Short Ratio3.96
Dividend
Industry RankSector 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)6.64%
PT rev (3m)17.55%
EPS NQ rev (1m)2.59%
EPS NQ rev (3m)11.09%
EPS NY rev (1m)8.55%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)2.79%
Revenue NQ rev (3m)10.58%
Revenue NY rev (1m)5.97%
Revenue NY rev (3m)5.93%
Valuation
Industry RankSector Rank
PE 25.14
Fwd PE 14.95
P/S 3.05
P/FCF 100.95
P/OCF 38.83
P/B 2.12
P/tB 2.61
EV/EBITDA 25.57
EPS(TTM)0.29
EY3.98%
EPS(NY)0.49
Fwd EY6.69%
FCF(TTM)0.07
FCFY0.99%
OCF(TTM)0.19
OCFY2.58%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.15
PEG (5Y)N/A
Profitability
Industry RankSector 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%
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-Score7
Asset Turnover0.5
Health
Industry RankSector 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 4.49
F-Score7
WACC8.56%
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 Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
Revenue Next Year17.29%
Revenue Next 2Y15.89%
Revenue Next 3Y13.63%
Revenue Next 5Y11.63%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year78.1%
EBIT Next 3Y34.66%
EBIT Next 5Y24%
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%