Shoals Technologies Group (SHLS) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 46.0
• Beta (1Y): 0.72
• Revenue Growth: 2.68%
• EPS Growth: 2.90%
• Country: US
• Employees: 1,290
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.12
• Shares Outstanding: 167,388,410
• 10 Day Avg. Volume: 4,895,282
• 30 Day Avg. Volume: 4,487,118
• PEG Ratio: -0.93
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 19.40
• 1Y Price Target: $11.07
• Price Target Upside: 18.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): $471.77M

• Rating: 67 Neutral
• Price Target: $9.00 ▼(-3.43% Downside)

Shoals Technologies Group's overall stock score is driven by strong financial performance, particularly in revenue growth and a robust backlog, as highlighted in the earnings call. However, high valuation metrics and technical indicators suggest caution. The recent executive appointment is a positive step, but profitability and cash flow remain areas for improvement.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.

Strong Backlog

A robust backlog ensures future revenue streams and reflects strong customer demand, supporting sustained growth and operational planning.

International Market Expansion

Expansion into international markets diversifies revenue sources and reduces dependence on domestic markets, enhancing resilience and growth potential.

Negative Factors

Increased Legal Expenses

Rising legal costs can strain financial resources and divert attention from core business activities, potentially impacting profitability and strategic initiatives.

Impact of Tariffs on Margins

Tariffs affecting supply chain costs can erode profit margins, challenging cost management and financial performance in the long term.

Decline in Free Cash Flow

A decline in free cash flow limits the company's ability to invest in growth opportunities and manage financial obligations, affecting future expansion and stability.

Shoals Technologies Group Business Overview & Revenue Model

Company Description

Shoals Technologies Group (SHLS) is a leading provider of electrical balance of system (EBOS) solutions for solar energy projects. Founded in 2010 and headquartered in Portland, Tennessee, the company focuses on delivering innovative products that enhance the efficiency and reliability of solar energy systems. Shoals operates primarily in the renewable energy sector, with key offerings including a range of wiring, connectivity, and monitoring solutions designed to optimize the performance of solar installations.

How the Company Makes Money

Shoals Technologies Group generates revenue primarily through the sale of its electrical balance of system products to solar project developers and installers. The company’s revenue model is based on a combination of direct sales of its proprietary products, including module-level power electronics and wiring solutions, and long-term contracts with utility-scale solar projects. Key revenue streams include both one-time product sales and recurring revenues from ongoing maintenance and support services. Additionally, strategic partnerships with major solar manufacturers and developers enhance Shoals' market reach and contribute to its earnings by providing bundled solutions that integrate its products into larger solar installations, thereby creating additional sales opportunities.

Shoals Technologies Group Financial Statement Overview

Summary

Shoals Technologies Group demonstrates solid revenue growth and a strong equity position, contributing to its financial stability. However, profitability margins and cash flow metrics indicate areas for improvement. The company should focus on enhancing net profit margins and cash flow generation to support long-term growth and investment capabilities.

Income Statement

Shoals Technologies Group shows a strong revenue growth trajectory with an 8.4% increase in TTM. The gross profit margin is healthy at 36.8%, indicating efficient cost management. However, the net profit margin is relatively low at 7.7%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting stable operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.28, indicating a manageable level of leverage. Return on equity is modest at 5.8%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 69.2%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The free cash flow growth rate has declined by 36%, which is a concern. The operating cash flow to net income ratio is 0.38, indicating that cash generation from operations is lower than net income. The free cash flow to net income ratio is 0.22, suggesting limited free cash flow relative to net income, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	433.99M	399.21M	488.94M	326.94M	213.21M	175.52M
Gross Profit	159.78M	142.02M	168.30M	131.31M	82.64M	66.55M
EBITDA	72.58M	64.32M	89.56M	181.05M	28.63M	46.68M
Net Income	33.27M	24.13M	39.97M	127.61M	2.35M	33.77M
Balance Sheet
Total Assets	851.79M	793.08M	843.99M	594.89M	426.41M	195.31M
Cash, Cash Equivalents and Short-Term Investments	8.59M	23.51M	22.71M	8.77M	5.01M	10.07M
Total Debt	166.24M	143.87M	181.44M	239.06M	247.05M	358.83M
Total Liabilities	262.15M	236.28M	299.00M	293.91M	433.91M	379.43M
Stockholders Equity	589.64M	556.80M	545.00M	291.37M	2.55M	-184.12M
Cash Flow
Free Cash Flow	7.73M	72.00M	81.38M	36.30M	-8.21M	50.85M
Operating Cash Flow	35.14M	80.39M	91.95M	39.45M	-4.08M	54.08M
Investing Cash Flow	-22.32M	-8.39M	-10.85M	-3.66M	-17.04M	-3.24M
Financing Cash Flow	-15.34M	-71.19M	-67.17M	-36.59M	20.60M	-47.85M

Shoals Technologies Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.32 is above the 20-day moving average (MA) of 8.44, above the 50-day MA of 9.04, and above the 200-day MA of 6.21, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 is Neutral, 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
SHLS	67 Neutral	$1.56B	45.96	5.86%	―	2.68%	2.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ARRY	61 Neutral	$1.54B	-16.38	-7.75%	―	35.75%	37.97%
FTCI	59 Neutral	$171.52M	-2.89	-664.69%	―	39.53%	-7.16%
SEDG	49 Neutral	$1.85B	-3.15	-78.09%	―	-0.14%	66.71%
TYGO	49 Neutral	$113.27M	-2.35	-177.48%	―	97.41%	11.83%
SPWR	40 Underperform	$142.12M	10.44	―	―	657.27%	―

Shoals Technologies Group Corporate Events

Shoals Technologies Appoints New Chief Accounting Officer

On November 5, 2025, Shoals Technologies Group announced the appointment of David Van Bibber as Chief Accounting Officer, enhancing its executive team. Van Bibber brings over 25 years of experience in accounting and finance leadership across global manufacturing organizations, which is expected to strengthen Shoals’ finance organization and support its growth, ensuring high standards of financial integrity as the company expands.