Shoals Technologies Group, Inc.
Shoals Technologies Group, Inc. Fundamental Analysis
Shoals Technologies Group, Inc. (SHLS) shows weak financial fundamentals with a PE ratio of 53.40, profit margin of 7.67%, and ROE of 5.83%. The company generates $0.4B in annual revenue with weak year-over-year growth of -18.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHLS's fundamental strength across five key dimensions:
Efficiency Score
WeakSHLS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHLS shows balanced valuation metrics.
Growth Score
WeakSHLS faces weak or negative growth trends.
Financial Health Score
ExcellentSHLS maintains a strong and stable balance sheet.
Profitability Score
WeakSHLS struggles to sustain strong margins.
Key Financial Metrics
Is SHLS Expensive or Cheap?
P/E Ratio
SHLS trades at 53.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHLS's PEG of 1.60 indicates fair valuation.
Price to Book
The market values Shoals Technologies Group, Inc. at 3.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.97 times EBITDA. This signals the market has high growth expectations.
How Well Does SHLS Make Money?
Net Profit Margin
For every $100 in sales, Shoals Technologies Group, Inc. keeps $7.67 as profit after all expenses.
Operating Margin
Core operations generate 12.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.83 in profit for every $100 of shareholder equity.
ROA
Shoals Technologies Group, Inc. generates $3.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shoals Technologies Group, Inc. generates limited operating cash flow of $34.66M, signaling weaker underlying cash strength.
Free Cash Flow
Shoals Technologies Group, Inc. generates weak or negative free cash flow of $7.63M, restricting financial flexibility.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
SHLS converts 0.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SHLS Stacks Against Its Sector Peers
| Metric | SHLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.40 | 20.19 | Worse (Expensive) |
| ROE | 5.83% | 1019.00% | Weak |
| Net Margin | 7.67% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.28 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.19 | 4.60 | Strong Liquidity |
| ROA | 3.91% | -11655350.00% (disorted) | Weak |
SHLS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shoals Technologies Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
162.69%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-8.76%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
111.25%
Industry Style: Cyclical, Value, Commodity
High Growth