SHLS

Shoals Technologies Group, Inc.

Fundamental data last updated:October 7, 2026

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company profile

SECTOR

Energy

industry

Solar

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. It produces EBOS components, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices. The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems. It sells its products principally to engineering, procurement, and construction firms that build solar energy projects and install electric vehicle charging stations. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

 


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VALUATION

P/E

60.91

Market Cap ($M USD)

$2.05B

Forward P/E

19.89

PEG

0.10

PRICE TO SALES

3.82

PRICE TO BOOK

3.40

EV / EBITDA

30.30

5-Year Average P/E

Free Cash Flow Yield

-3.78%

DCF Value

$5.40

Graham Number

$4.02

Price to FCF

-26.44

EV to FCF

-29.25

Earnings Yield

1.64%

FCF Yield

-3.78%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.20

Next Year EPS Growth Estimate

$0.61

Next Year Revenue Growth Estimate

$779.97M

Return on Equity (ROE)

5.67%

FREE CASH FLOW

Operating Margin

11.16%

Debt-to-Equity

0.29

Piotroski F-Score

3

Altman Z-Score

3.96

Return on Invested Capital (ROIC)

7.27%

Current Ratio

1.84

Quick Ratio

1.07

Net Debt to EBITDA

2.91

Interest Coverage

5.72

Gross Profit margin

33.50%

FCF PER SHARE

$-0.46

REVENUE PER SHARE

$3.20

Analyze SHLS on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing SHLS, as recent pricing indicated it was extended above its DCF value and Graham Number. Despite a robust Forward P/E of 14.41 suggesting future growth, the current Earnings Yield of 2.27% is underwhelming. The Altman Z-score of 3.17 signals financial stability, yet the stock’s valuation multiples, such as Price/Book at 2.46, suggest it’s not a bargain. The company’s financial health is a mixed bag, with a high Price/Earnings ratio of 44.14, indicating that investors are paying a premium for its earnings.

AI Exposure / Tech Reliance

In the solar industry, SHLS is well-positioned to leverage AI and modern tech advancements. The energy sector's shift towards smart grids and efficient energy management systems aligns with their offerings. This positioning could enhance their adaptability and resilience in a rapidly evolving tech landscape.

The Bull Case

For a value or GARP investor, SHLS presents an intriguing opportunity. The Forward PEG ratio of 0.07 highlights significant growth potential at a reasonable price. With an ROIC of 7.27% and a solid operating margin of 11.16%, the company demonstrates efficient capital use and pricing power. Despite a low Piotroski F-Score of 3, the company's ability to generate returns above its cost of capital is a compelling narrative for long-term growth.

The Bear Case

However, SHLS faces structural risks that cannot be ignored. The negative FCF Yield and Price to FCF ratio of -19.16 indicate poor cash flow generation, raising concerns about liquidity. The stock's technical overextension, trading significantly above its 50-Day and 200-Day SMAs, suggests it may be overpriced. Additionally, the high EV to EBITDA of 22.76 points to a potentially inflated valuation, making it vulnerable to market corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$8.75

Institutional Ownership %

1-Year Beta

1.74

Insider Buying % (6 Mo)

Distance to 52-Week High

2.46%

Distance to 52-Week Low

67.30%

EARNINGS SURPRISE %

16.67%

50-DAY SMA

$7.88

200-DAY SMA

$8.20

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.