Shoals Technologies Group (SHLS) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: N/A
• Average Volume (3M): 7.54M
• Price to Earnings (P/E): 47.1
• 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: 167,362,700
• 10 Day Avg. Volume: 7,271,427
• 30 Day Avg. Volume: 7,543,471
• 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: 0.91
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 24.37
• 1Y Price Target: $11.29
• Price Target Upside: 21.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $10.50 ▲(12.54% Upside)

Shoals Technologies Group's overall stock score is driven by strong financial performance and positive technical indicators. The earnings call provided optimistic guidance, reinforcing growth prospects. However, high valuation metrics and profitability pressures present risks. The company's strategic focus on international markets and battery energy storage solutions positions it well for future growth, but attention to improving cash flow and managing legal expenses is necessary.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, supporting long-term expansion and financial health.

Strong Backlog

A strong backlog reflects sustained demand and future revenue visibility, enhancing the company's ability to plan and invest in growth initiatives.

International Expansion

International expansion diversifies revenue streams and reduces dependency on domestic markets, positioning the company for global growth.

Negative Factors

Profitability Margins

Low net profit margins suggest challenges in cost management and profitability, which could hinder reinvestment and growth if not addressed.

Cash Flow Concerns

Declining cash flow growth limits the company's ability to fund operations and invest in new opportunities, potentially impacting long-term sustainability.

Increased Legal Expenses

Rising legal expenses can strain financial resources and divert focus from core business activities, affecting overall profitability and strategic initiatives.

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 the solar energy industry. The company specializes in the design and manufacturing of innovative products that enhance the performance and efficiency of solar power systems. Its core offerings include a range of products such as wiring harnesses, electrical enclosures, and combiner boxes, which are essential components for solar installations. Shoals serves various sectors within the renewable energy market, focusing primarily on utility-scale solar projects.

How the Company Makes Money

Shoals Technologies Group generates revenue through the sale of its electrical balance of system products to solar developers, contractors, and utilities involved in solar energy projects. The company’s revenue model primarily relies on direct sales of its innovative eBOS solutions, which are critical for the installation and operation of solar power systems. Key revenue streams include product sales, where Shoals sells its proprietary hardware and accessories that facilitate solar energy generation. Additionally, the company may benefit from strategic partnerships with solar developers and companies, enhancing its market reach and enabling collaborative projects that can lead to increased sales. Factors contributing to its earnings include the growing demand for renewable energy solutions, advancements in solar technology, and the company's ability to provide cost-effective and high-quality products tailored to the needs of the industry.

Shoals Technologies Group Financial Statement Overview

Summary

Shoals Technologies Group demonstrates stable revenue and profitability with improvements in leverage. However, declining cash flow metrics and operational margins highlight potential areas of concern. The company should focus on enhancing operational efficiency and cash flow generation to strengthen its financial position.

Income Statement

Shoals Technologies Group shows moderate revenue growth with a TTM increase of 2.98%. Gross profit margins have slightly decreased from 35.57% to 33.70% TTM, indicating some pressure on cost management. Net profit margin remains stable around 6.13% TTM, reflecting consistent profitability. However, EBIT and EBITDA margins have declined, suggesting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.23 TTM, indicating a healthier leverage position. Return on equity is stable at 4.39% TTM, but lower than previous years, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong, showing a solid capital structure.

Cash Flow

Free cash flow has significantly decreased by 83.66% TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.39 TTM, indicating limited cash conversion efficiency. The free cash flow to net income ratio is 0.38 TTM, suggesting potential liquidity constraints.

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	57.77M	64.32M	89.56M	181.05M	48.63M	46.68M
Net Income	33.27M	24.13M	39.97M	127.61M	3.94M	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	184.70M	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: Neutral
• Last Price: 9.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHLS, the sentiment is Neutral. The current price of 9.33 is below the 20-day moving average (MA) of 10.07, above the 50-day MA of 8.47, and above the 200-day MA of 5.50, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHLS.

Shoals Technologies Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	73 Outperform	$1.55B	47.07	5.86%	―	2.68%	2.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTCI	57 Neutral	$117.81M	-2.18	-175.83%	―	-17.53%	8.53%
TYGO	56 Neutral	$147.26M	-3.40	-177.48%	―	97.41%	11.83%
ARRY	51 Neutral	$1.18B	―	-44.13%	―	6.36%	-1683.09%
SEDG	49 Neutral	$1.89B	―	-131.02%	―	-36.07%	-233.14%
SPWR	41 Neutral	$134.64M	-2.40	―	―	308.47%	76.84%

Shoals Technologies Group Corporate Events

Shoals Technologies Group Reports Strong Q3 2025 Results

Shoals Technologies Group, Inc. is a prominent provider of electrical balance of system solutions and components, specializing in the global energy transition market with a focus on solar energy systems. The company recently reported its financial results for the third quarter of 2025, showcasing a record quarterly revenue of $135.8 million, marking a 32.9% increase from the previous year. The company also achieved a gross margin of 37.0% and an operating profit of $18.7 million, alongside an adjusted EBITDA of $32.0 million.

Shoals Technologies Group Reports Record Revenue and Strategic Growth

Shoals Technologies Group’s recent earnings call painted a picture of robust growth and strategic expansion, tempered by some challenges. The company reported record revenue growth and a strong backlog, underscoring its successful quarter. However, increased legal expenses and the impact of tariffs on margins were notable hurdles that the company faced.

Shoals Technologies Reports Strong Q2 2025 Results

Shoals Technologies Group, Inc. is a prominent player in the renewable energy sector, specializing in electrical balance of system solutions and components for the global energy transition market. The company recently reported its financial results for the second quarter of 2025, showcasing a strong performance with a revenue increase of 11.7% year-over-year, reaching $110.8 million. The company also reported a gross margin of 37.2% and an operating profit of $16.0 million.

Shoals Technologies Group Reports Mixed Q2 2025 Earnings

Shoals Technologies Group’s recent earnings call painted a picture of mixed sentiment, highlighting both significant achievements and notable challenges. The company reported strong revenue growth and increased guidance, with positive developments in international markets. However, challenges such as elevated legal expenses, negative free cash flow, and declining gross margins tempered the overall optimism.