Shoals Technologies Group, Inc. (SHLS) stock analysis
Close on Nov 11, 2026Market cap $1.48BP/E 38.3Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
Shoals Technologies passes 12 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 3/6
- Past performance
- 2/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $8.80 is below our fair value estimate of $9.81.
Revenue growing 10%+ a year
Revenue grew 13.3% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 13.7% over the last twelve months, against a 5-year average of -0.1% a year.
Interest well covered
Operating income covers interest expense 5.7 times.
What to watch
Margin of safety under 20%
The price is 10.3% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 6.2% over the last twelve months and averaged 39.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 8.6%, below the 10% that usually covers the cost of capital.
Earnings shrank over 5 years
Net income shrank 0.1% a year on average over the last five fiscal years.
Valuation4/6
P/E below its 5-year median
Shoals Technologies's P/E of 38.3 is below its own 5-year median of 39.9.
P/E above the industry
Shoals Technologies's P/E of 38.3 is above the Electronic Components and Accessories median of 34.8.
EV/EBITDA below its 5-year median
Shoals Technologies's EV/EBITDA of 17.2 is below its 5-year median of 21.1.
P/B below the industry
Shoals Technologies's price-to-book of 2.32 is below the Electronic Components and Accessories median of 3.49.
Trading below fair value
The share price of $8.80 is below our fair value estimate of $9.81.
Margin of safety under 20%
The price is 10.3% below fair value, less than the 20% cushion we look for.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 13.3% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -38.3% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 13.7% over the last twelve months, against a 5-year average of -0.1% a year.
Growing faster than the industry
Revenue grew 49.2% over the last twelve months; the Electronic Components and Accessories median is 17.3%.
Guidance lowered
Shoals Technologies lowered its full year 2026 Interest expense outlook on Aug 4, 2026.
Gross margin slipping
Gross margin was 30.9% over the last twelve months, against 36.8% a year earlier.
Past performance2/6
Return on equity under 15%
Return on equity was 6.2% over the last twelve months and averaged 39.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 8.6%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Shoals Technologies's return on equity of 6.2% is above the Electronic Components and Accessories median of 4.8%.
Earnings shrank over 5 years
Net income shrank 0.1% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 5.8% over the last twelve months, against a 5-year average of 12.3%.
Net margin above the industry
Shoals Technologies's net margin of 5.8% is above the Electronic Components and Accessories median of 2.9%.
Financial health3/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest well covered
Operating income covers interest expense 5.7 times.
Short-term assets cover short-term debts
Current assets are 2.45 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 4.00; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Shoals Technologies has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.81
The share price is 10% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 36.8× | 39.9× | 34.8× | $8.45 | 47% |
| EV/EBITDA | 21.2× | 21.1× | 21.3× | $10.83 | 41% |
| P/B | 3.1× | 2.4× | 3.5× | $11.69 | 12% |
| Earnings powerleft out, too far from the others | 10.5% cost of equity | – | – | $2.95 | – |
| Fair value | $9.81 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 39.9
- Electronic Components and Accessories median 34.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $52.38M
- Value traded per 1% price move
- $10.38M
Downside
High risk
- Typical loss in a bad month
- 41.5%
- Volatility (annualized)
- 86%
- Sharpe ratio, 1 year
- -0.12
- Beta to the S&P 500 (5Y)
- 1.13
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +19.1% | +13.3% | +22.0% | – | |
| Gross profit | +17.2% | +8.2% | +20.1% | – | |
| Operating income | +10.2% | -5.3% | +8.6% | – | |
| Net income | +39.2% | -35.9% | -0.1% | – | |
| EPS, diluted | +42.9% | -38.3% | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 5.8% | |
| Return on assets | – | – | 4.0% | |
| Current ratio | – | 2.33 | 2.03 | |
| Debt to equity | – | – | – | |
| Net debt to EBITDA | – | 7.47× | – | |
| Interest coverage | – | 10.6× | 5.6× | |
| Inventory turnover | – | – | 4.2× | |
| Capex to revenue | – | 1.8% | 7.0% | |
| Diluted shares | – | – | 168M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Shoals Technologies generated $232.95M from operations and spent $84.63M on capital expenditure, dividends and share buybacks. 70% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 7.1% | 0.56× | 1.47× | 5.8% |
| FY2024 | 6.0% | 0.49× | 1.49× | 4.4% |
| FY2023 | 8.2% | 0.68× | 1.72× | 9.6% |
| FY2022 | 39.0% | 0.64× | 3.47× | 86.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$33.57M
- Cash generatingOperating cash flow above zero$17.07M
- Return on assets improvedROA up on the prior year2.9% → 4.2%
- Earnings backed by cashOperating cash flow above net income$17.07M vs $33.57M
- Less leverageLong-term debt to assets fell17.9% → –
- Better liquidityCurrent ratio rose2.33 → 2.03
- No dilutionShare count did not rise169M → 168M
- Gross margin improvedGross margin up on the prior year35.57% → 35.03%
- More efficientAsset turnover rose0.47 → 0.60
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