Shoals Technologies Group (SHLS) AI Stock Analysis

• Market Cap: $862.62M
• Dividend Yield: N/A
• Average Volume (3M): 7.70M
• Price to Earnings (P/E): 45.7
• Beta (1Y): 0.90
• Revenue Growth: -18.10%
• EPS Growth: -36.91%
• Country: US
• Employees: 1,290
• Sector: Technology
• Sector Strength: 84
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 167,174,800
• 10 Day Avg. Volume: 4,649,618
• 30 Day Avg. Volume: 7,698,457
• PEG Ratio: -0.93
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 5.78
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 37.28
• Enterprise Value/Ebitda: 18.91
• 1Y Price Target: $6.18
• Price Target Upside: 21.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $5.00 ▼(-1.96%Downside)

Shoals Technologies Group's overall stock score is primarily supported by its solid financial health and positive technical indicators. The company's strong balance sheet and cash flow management provide a stable foundation despite revenue growth challenges. Technical analysis suggests a bullish trend, while valuation remains a concern due to the high P/E ratio. The cautiously optimistic sentiment from the earnings call further supports the stock's potential, though ongoing litigation and market pressures pose risks.

Positive Factors

Competitive Position

Shoals is more insulated than its competitors who primarily source from China, making it relatively better positioned against tariff impacts.

Market Expansion

Shoals is preparing to scale into adjacent markets like data centers and BESS, with estimated SAM potentially reaching $500M–$1B.

Revenue Outlook

Management flagged that ~$500mn of revenue is slated for the next four quarters, providing solid visibility for the year.

Negative Factors

Competitive Pressure

There are considerable investor concerns around growing competitive pressures for SHLS.

Cost Inflation

Cost inflation is anticipated to eventually impact projects, potentially driving the repricing of PPAs or project delays.

Tariff Volatility

Protracted tariff volatility and potential IRA changes could impact industry at large leading to lower bookings and awards in 2H25.

Shoals Technologies Group Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Shoals Technologies Group generates revenue primarily through the sale of its electrical balance of system (EBOS) products to solar energy project developers and engineering, procurement, and construction (EPC) firms. The company's key revenue streams include the sale of wire harnesses, combiner boxes, and other electrical components essential for solar power generation. Shoals benefits from long-term supply agreements and strategic partnerships with major solar energy companies, which contribute significantly to its earnings. Additionally, the company's focus on innovation and cost-effective solutions helps maintain its competitive edge and attract a broad customer base in the growing renewable energy sector.

Shoals Technologies Group Financial Statement Overview

Summary

Shoals Technologies Group demonstrates solid financial health with strong balance sheet metrics and cash flow management. However, challenges in maintaining revenue growth are evident, which may impact future profitability. The company's stable margins and efficient cash flow operations position it well, but attention to revenue growth is necessary to enhance financial performance further.

Income Statement

Shoals Technologies Group's income statement shows moderate profitability with a gross profit margin of 34.39% and a net profit margin of 5.78% for the TTM period. While the company has experienced fluctuations in revenue, the recent TTM revenue has decreased from the previous year. EBIT and EBITDA margins are stable at 11.29% and 14.77% respectively, indicating efficient operations despite declining revenue.

Balance Sheet

The balance sheet of Shoals Technologies Group shows a healthy equity position with a debt-to-equity ratio of 0.25. The return on equity (ROE) is modest at 4.02%, reflecting moderate returns on shareholder investments. The equity ratio stands at 70.89%, indicating a strong reliance on equity financing which enhances financial stability.

Cash Flow

The cash flow statement indicates effective cash management with a free cash flow to net income ratio of 3.29 and an operating cash flow to net income ratio of 3.70 for the TTM. The company has managed to generate positive free cash flow growth, which is a positive sign of operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
388.76M	399.21M	488.94M	326.94M	213.21M	175.52M
	Gross Profit
133.70M	142.02M	168.30M	131.31M	82.64M	66.55M
	EBIT
43.90M	51.17M	79.03M	170.54M	36.23M	37.28M
	EBITDA
57.45M	64.32M	89.56M	181.05M	48.63M	46.68M
	Net Income Common Stockholders
22.48M	24.13M	39.97M	127.61M	3.94M	33.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.08M	23.51M	22.71M	8.77M	5.01M	10.07M
	Total Assets
0.00	793.08M	843.99M	594.89M	426.41M	195.31M
	Total Debt
0.00	141.75M	184.70M	239.06M	247.05M	358.83M
	Net Debt
7.08M	118.24M	161.99M	230.30M	242.05M	348.76M
	Total Liabilities
0.00	236.28M	299.00M	293.91M	433.91M	379.43M
	Stockholders Equity
149.91M	556.80M	545.00M	291.37M	2.55M	-184.12M
Cash Flow		Free Cash Flow
73.97M	72.00M	81.38M	36.30M	-8.21M	50.85M
	Operating Cash Flow
83.09M	80.39M	91.95M	39.45M	-4.08M	54.08M
	Investing Cash Flow
-9.12M	-8.39M	-10.85M	-3.66M	-17.04M	-3.24M
	Financing Cash Flow
-53.59M	-71.19M	-67.17M	-36.59M	20.60M	-47.85M

Shoals Technologies Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHLS, the sentiment is Positive. The current price of 5.1 is above the 20-day moving average (MA) of 4.90, above the 50-day MA of 4.12, and above the 200-day MA of 4.69, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHLS.

Shoals Technologies Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	76 Outperform	$8.62B	17.01	39.33%	―	21.46%	123.22%
SHLS	69 Neutral	$862.62M	45.66	3.43%	―	-18.10%	-36.91%
JKS	63 Neutral	$948.84M	118.10	-9.49%	15.64%	-30.26%	-156.69%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
ARRY	58 Neutral	$1.14B	―	-49.11%	―	-21.31%	-593.57%
SEDG	51 Neutral	$1.07B	―	-121.50%	―	-57.89%	-559.87%
CSIQ	50 Neutral	$752.77M	20.05	-0.39%	―	-19.06%	-104.91%

Shoals Technologies Group Corporate Events

Shoals Technologies Holds 2025 Annual Shareholder Meeting

On May 1, 2025, Shoals Technologies Group, Inc. held its 2025 Annual Meeting of Shareholders, where key proposals were voted on. Shareholders elected Class I directors for a one-year term, approved the compensation of named executive officers, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025.

Shoals Technologies Announces CAO Resignation and CFO Transition

Shoals Technologies Group reported its financial results for the first quarter of 2025, showing a revenue of $80.4 million and a net loss of $0.3 million. Despite a decrease in revenue and gross profit compared to the prior year, the company highlighted a robust backlog and awarded orders totaling $645.1 million, reflecting a 4.9% year-over-year increase. The company also announced the resignation of Chief Accounting Officer Inez Lund, effective May 16, 2025, with CFO Dominic Bardos taking over her responsibilities. Shoals remains optimistic about its market position, citing strong demand in international markets and strategic initiatives driving growth in various sectors.