Shoals Technologies Group, Inc. (SHLS)
NASDAQ:SHLS
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Shoals Technologies Group
(NASDAQ:SHLS)
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Rating:57Neutral
Price Target:
$10.00
▲(39.66% Upside)
Action:Reiterated
Date:06/12/26
Overall score reflects solid demand visibility and improved outlook from the latest earnings call (raised guidance and record backlog), tempered most by weak TTM cash generation and low cash on hand. Technicals are mixed (longer-term improvement but near-term softness), while valuation is a headwind given the high P/E and no dividend support.
Positive Factors
Record backlog / demand visibility
A $758M backlog with ~ $628M deliverable in the next four quarters provides durable revenue visibility, enabling production planning, capacity utilization and cash flow predictability over 2–6 months. It de-risks near-term revenue execution versus spot demand cycles.
Negative Factors
Weak TTM cash generation
Negative trailing twelve‑month operating and free cash flow, and very low cash on hand, indicate poor cash conversion despite accounting profits. This increases reliance on credit, heightens liquidity risk, and constrains capital allocation until working capital normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog / demand visibility
A $758M backlog with ~ $628M deliverable in the next four quarters provides durable revenue visibility, enabling production planning, capacity utilization and cash flow predictability over 2–6 months. It de-risks near-term revenue execution versus spot demand cycles.
Read all positive factors
Shoals Technologies Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business segments, highlighting which areas are driving growth and profitability, and indicating strategic focus and market strength.
Breaks down revenue by business segments, highlighting which areas are driving growth and profitability, and indicating strategic focus and market strength.
Data provided by:
The Fly
The FlyShoals Technologies Group (SHLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.66B
Dividend YieldN/A
Average Volume (3M)5.78M
Price to Earnings (P/E)52.1
Beta (1Y)0.83
Revenue Growth37.75%
EPS Growth77.43%
CountryUS
Employees1,290
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)0.20
Shares Outstanding167,771,820
10 Day Avg. Volume5,246,633
30 Day Avg. Volume5,778,404
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)2.37
Price to Sales (P/S)2.99
P/FCF Ratio-88.99
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue4.31
Enterprise Value/Gross Profit12.86
Enterprise Value/Ebitda33.17
Forecast
1Y Price Target
$10.65Price Target Upside48.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)0.41
Revenue Forecast (FY)$622.24M
Shoals Technologies Group Business Overview & Revenue Model
Company Description
Shoals Technologies Group, Inc. provides Electrical Balance of System (EBOS) solutions designed for solar power projects throughout the United States. The company manufactures a wide array of EBOS components, including various cable assemblies, in...
How the Company Makes Money
Shoals makes money primarily by selling EBOS products and system solutions for solar projects. Revenue is generated when customers (often solar engineering, procurement, and construction firms, developers, and/or system integrators) purchase Shoal...
Shoals Technologies Group Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Shoals reported exceptional top-line growth (Q1 revenue +75% YoY), record backlog ($758M), strong adjusted EBITDA and adjusted net income expansion, and raised full-year guidance. These operational wins are balanced by near-term margin pressure driven by product mix, tariffs, freight, temporary labor inefficiencies related to a major facility move, elevated legal expenses, and a deliberate inventory build that consumed cash. Management expects margins to trough in Q1 and improve sequentially through the year, with the raised guidance reflecting confidence in demand and execution despite transitory headwinds.Positive Updates
Strong Revenue Growth
Q1 revenue of $140.6M (reported as ~$141M), up ~75% year-over-year, driven by strong demand in core U.S. utility-scale solar markets.
Negative Updates
Margin Pressure and Guidance Caution
Adjusted gross profit percentage was 29.6% (GAAP gross margin 29.2%), slightly below expectations; adjusted EBITDA margin was 15.0% vs 16.8% a year ago. Management expects Q1 to be the low point but Q2 margins remain pressured with recovery expected later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 revenue of $140.6M (reported as ~$141M), up ~75% year-over-year, driven by strong demand in core U.S. utility-scale solar markets.
Read all positive updates
Company Guidance
Management raised its outlook, guiding Q2 revenue of $150–$170M (midpoint ≈ +44% YoY) and Q2 adjusted EBITDA of $28–$33M (midpoint ≈ +25% YoY); for full-year 2026 they now expect revenue of $600–$640M (midpoint ≈ +30% YoY) and adjusted EBITDA of $118–$132M (midpoint ≈ +26% YoY), while maintaining full-year cash flow from operations of $65–$85M, capital expenditures of $20–$30M and interest expense of $8–$12M; the guide is supported by Q1 results (revenue $140.6M, adjusted EBITDA $21.1M), a record BLAO/backlog of $758.0M (≈ $627.6M with planned delivery in the next four quarters), and a balance sheet with cash $1.9M, net debt $179.9M (net debt/adjusted EBITDA 1.6x) and a plan to keep leverage below 2x.Shoals Technologies Group Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.53M | 475.33M | 399.21M | 488.94M | 326.94M | 213.21M |
| Gross Profit | 179.38M | 166.51M | 142.02M | 168.30M | 131.31M | 82.64M |
| EBITDA | 69.53M | 67.11M | 64.32M | 89.56M | 181.05M | 28.63M |
| Net Income | 33.56M | 33.57M | 24.13M | 39.97M | 127.61M | 2.35M |
Balance Sheet | ||||||
| Total Assets | 1.03B | 904.10M | 793.08M | 843.99M | 594.89M | 426.41M |
| Cash, Cash Equivalents and Short-Term Investments | 1.88M | 7.32M | 23.51M | 22.71M | 8.77M | 5.01M |
| Total Debt | 219.55M | 175.41M | 141.75M | 181.44M | 239.06M | 247.05M |
| Total Liabilities | 429.25M | 304.13M | 236.28M | 299.00M | 293.91M | 433.91M |
| Stockholders Equity | 601.65M | 599.97M | 556.80M | 545.00M | 291.37M | 2.55M |
Cash Flow | ||||||
| Free Cash Flow | -77.42M | -15.98M | 72.00M | 81.38M | 36.30M | -8.21M |
| Operating Cash Flow | -39.94M | 17.07M | 80.39M | 91.95M | 39.45M | -4.08M |
| Investing Cash Flow | -32.39M | -27.95M | -8.39M | -10.85M | -3.66M | -17.04M |
| Financing Cash Flow | 38.60M | -5.30M | -71.19M | -67.17M | -36.59M | 20.60M |
Shoals Technologies Group Technical Analysis
Positive
7.16
Price Trends
8.93
Positive
8.44
Positive
8.50
Positive
Market Momentum
0.38
Positive
51.72
Neutral
19.75
Positive
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 7.16 is below the 20-day moving average (MA) of 10.83, below the 50-day MA of 8.93, and below the 200-day MA of 8.50, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHLS.
Shoals Technologies Group Risk Analysis
Shoals Technologies Group disclosed 26 risk factors in its most recent earnings report. Shoals Technologies Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shoals Technologies Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.55B | -9.99 | -79.58% | ― | 35.40% | 79.65% | |
58 Neutral | $1.15B | -17.74 | -20.64% | ― | 13.19% | 54.98% | |
57 Neutral | $1.66B | 52.08 | 5.67% | ― | 37.75% | 77.43% | |
57 Neutral | $222.42M | 61.79 | 16.40% | ― | 74.29% | ― | |
50 Neutral | $71.86M | -1.66 | 316.79% | ― | 73.02% | 14.88% | |
44 Neutral | $125.55M | -1.42 | 51.99% | ― | 59.85% | -5.61% |
* Technology Sector Average
SHLS
Shoals Technologies Group
10.43
5.32
104.11%
SEDG
SolarEdge Technologies
60.80
37.50
160.94%
ARRY
Array Technologies
7.77
-0.19
-2.39%
FTCI
FTC Solar
4.32
-0.26
-5.68%
SPWR
SunPower Inc
0.81
-1.11
-58.02%
TYGO
Tigo Energy
2.87
1.70
145.30%
Shoals Technologies Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Shoals Technologies Expands Revolving Credit to Boost Flexibility
Positive
Jun 12, 2026
On June 10, 2026, Shoals Technologies Group, Inc. amended its existing credit agreement to secure a new $50 million tranche of incremental revolving loans available for 18 months, aligning the facility’s terms closely with its existing revol...
Executive/Board ChangesShareholder Meetings
Shoals Technologies shareholders back board, pay and auditor
Positive
May 1, 2026
On April 30, 2026, Shoals Technologies Group, Inc. held its 2026 Annual Meeting of Shareholders, at which investors elected five directors, including Ty Daul, Niharika Taskar Ramdev and Toni Volpe, to one-year terms expiring in 2027, while Jeannet...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.