Shoals Technologies Group (SHLS) AI Stock Analysis

• Market Cap: $737.18M
• Dividend Yield: N/A
• Average Volume (3M): 5.58M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 0.99
• Revenue Growth: -18.10%
• EPS Growth: -36.91%
• Country: US
• Employees: 1,290
• Sector: Technology
• Sector Strength: 67
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 167,160,720
• 10 Day Avg. Volume: 5,860,507
• 30 Day Avg. Volume: 5,580,315
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.41
• Price Target Upside: 25.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Shoals Technologies Group's performance is underpinned by strong financial and strategic growth initiatives. Nonetheless, challenges such as declining margins, litigation costs, and high valuation metrics present risks. Technical indicators suggest caution due to overbought conditions.

Positive Factors

Market Growth

SHLS won two projects in the BESS market, which is growing at 15% CAGR through 2029 and is slightly larger than its core domestic utility-scale solar market.

Revenue Guidance

Shoals reaffirmed revenue guidance with potential to achieve the high end, as management has not seen any indications of project delays from customers.

Tariff Advantage

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

Negative Factors

Cost Inflation Impact

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

Margin Pressure

Gross margin of 35% was below expectations, with management citing strategic pricing initiatives, volume discounts, products mix, and lower fixed cost leverage.

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 makes money primarily through the sale of its EBOS components and solutions to solar project developers, engineering procurement and construction firms, and independent power producers. The company's revenue model is centered around providing high-quality, cost-effective solutions that enhance the efficiency of solar power systems. Key revenue streams include direct sales of EBOS components, such as junction boxes and wire harnesses, and the provision of comprehensive system design services that help customers optimize their solar installations. Additionally, Shoals benefits from long-term relationships with major players in the solar industry, which can lead to repeat business and stable revenue growth.

Shoals Technologies Group Financial Statement Overview

Summary

Shoals Technologies Group shows strong revenue growth and improving balance sheet metrics. The cash flow is robust, supporting financial stability, though margin efficiency needs attention and debt levels must be managed carefully.

Income Statement

Shoals Technologies Group has demonstrated consistent revenue growth over the years, with an increase from $175.52M in 2020 to $399.21M in 2024. Gross profit margins have remained strong, indicating efficient cost management. However, there was a decline in EBIT and EBITDA margins in 2024, suggesting increased operating expenses or reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly as equity has grown over the years, reducing financial leverage risks. In 2024, the equity ratio was healthy, reflecting a strong asset base versus liabilities. However, the company has carried substantial debt historically, which could pose risks if not managed carefully.

Cash Flow

The operating cash flow has been positive and growing, indicating robust cash-generating capabilities. The company has managed to maintain positive free cash flow, supporting reinvestment and financial stability. The free cash flow to net income ratio is strong, reflecting efficient cash conversion.

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

Shoals Technologies Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.09 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.43, and above the 200-day MA of 4.78, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 78.37 is Negative, neither overbought nor oversold. The STOCH value of 95.62 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	$6.25B	11.30	39.64%	―	21.46%	123.22%
SHLS	70 Outperform	$737.18M	39.03	3.43%	―	-18.10%	-36.91%
JKS	63 Neutral	$896.71M	118.10	-9.49%	15.71%	-30.26%	-156.69%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
ARRY	59 Neutral	$785.44M	―	-49.11%	―	-21.31%	-593.57%
SEDG	54 Neutral	$848.45M	―	-121.50%	―	-57.89%	-559.87%
CSIQ	51 Neutral	$592.93M	16.56	1.34%	―	-21.28%	-87.20%

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.

Spark’s Take on SHLS Stock

According to Spark, TipRanks’ AI Analyst, SHLS is a Outperform.

Shoals Technologies Group’s performance is underpinned by strong financial and strategic growth initiatives. Nonetheless, challenges such as declining margins, litigation costs, and high valuation metrics present risks. Technical indicators suggest caution due to overbought conditions.

To see Spark’s full report on SHLS stock, click here.

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.

Spark’s Take on SHLS Stock

According to Spark, TipRanks’ AI Analyst, SHLS is a Outperform.

Shoals Technologies Group’s stock is moderately rated at 72. The company’s financial performance is robust with strong revenue and cash flow, but profit margin concerns and historical debt are notable risks. Technical indicators suggest cautious optimism with mixed signals, while the valuation is moderate. The earnings call indicates a positive outlook for 2025, though litigation challenges remain a risk.

To see Spark’s full report on SHLS stock, click here.