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Shoals Technologies Group
(NASDAQ:SHLS)
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Rating:54Neutral
Price Target:
$9.00
▲(30.62% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak cash generation (negative operating and free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). These are partially offset by a constructive earnings-call outlook—reaffirmed 2026 guidance, strong recent growth, and record backlog providing revenue visibility—though valuation remains relatively expensive at ~38x P/E without dividend support.
Positive Factors
Backlog Visibility
The record backlog and substantial scheduled shipments provide meaningful revenue visibility beyond a single quarter. Strong bookings and a 1.3 book-to-bill ratio indicate continuing demand, supporting production planning and reducing reliance on uncertain near-term project wins.
Negative Factors
Weak Cash Conversion
Negative operating and free cash flow indicate that reported earnings are not currently converting into cash effectively. Persistent weak conversion could require greater reliance on financing, constrain investment flexibility, and increase execution risk while the company funds growth and working-capital needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog Visibility
The record backlog and substantial scheduled shipments provide meaningful revenue visibility beyond a single quarter. Strong bookings and a 1.3 book-to-bill ratio indicate continuing demand, supporting production planning and reducing reliance on uncertain near-term project wins.
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
$1.47B
Dividend YieldN/A
Average Volume (3M)4.08M
Price to Earnings (P/E)46.9
Beta (1Y)0.90
Revenue Growth46.88%
EPS Growth50.24%
CountryUS
Employees1,480
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)0.19
Shares Outstanding168,299,960
10 Day Avg. Volume3,978,730
30 Day Avg. Volume4,078,747
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 Cap1.29
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit10.13
Enterprise Value/Ebitda26.32
Forecast
1Y Price Target
$11.65Price Target Upside69.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.43
Revenue Forecast (FY)$628.53M
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 mainly by selling EBOS products used in utility-scale and other large solar installations. Revenue is generated when customers (typically solar project developers, engineering/procurement/construction contractors, and system int...
Shoals Technologies Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented strong operational and commercial momentum: revenue grew ~47% YoY, backlog reached a record $801M, adjusted EBITDA and adjusted net income increased materially, SG&A efficiency improved, and strategic partnerships (TerraFlow, ON.energy) and product innovation (AirLink, BESS) position the company for further diversification. Near-term challenges include higher net debt, ongoing factory consolidation with associated short-term inefficiencies, an upcoming district court trial-related expense in Q3, and some timing/seasonality risks that could shift revenue between quarters. Overall, the positive growth, margin progress, record backlog, and strategic wins outweigh the near-term operational and legal headwinds.Positive Updates
Revenue Growth
Second quarter revenue of $163.4M (reported as $163M) up approximately 47% year-over-year, within guided range.
Negative Updates
GAAP Net Income Decline
GAAP net income declined to $12.1M in Q2 versus $13.9M in the prior year period (prior period benefited from a $3.1M gain on sale of a manufacturing facility).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Second quarter revenue of $163.4M (reported as $163M) up approximately 47% year-over-year, within guided range.
Read all positive updates
Company Guidance
Management reaffirmed full-year 2026 guidance and gave Q3 targets: for the quarter ending Sept. 30 revenue of $150–170 million (about 18% YoY growth at the midpoint) and adjusted EBITDA of $32–37 million (≈8% YoY at the midpoint); for full-year 2026 revenue of $600–640 million (≈30% YoY at the midpoint) and adjusted EBITDA of $118–132 million (≈26% YoY at the midpoint). They also reiterated full-year cash flow from operations of $65–85 million, capital expenditures of $20–30 million and interest expense of $8–12 million. These targets follow a Q2 result of $163.4 million revenue (up 47% Y/Y), adjusted gross profit of 30.6%, adjusted EBITDA of $31.6 million (up ~28% Y/Y), SG&A of ~$28–28.5 million (~17% of revenue), cash of $15.7 million, net debt of $181.1 million (net debt / adjusted EBITDA 1.6x), and record backlog & awarded orders (BLAO) of $801.4 million (≈$699.7 million scheduled over the next four quarters).Shoals Technologies Group Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 588.06M | 475.33M | 399.21M | 488.94M | 326.94M | 213.21M |
| Gross Profit | 187.70M | 166.51M | 142.02M | 168.30M | 131.31M | 82.64M |
| EBITDA | 72.25M | 72.33M | 64.32M | 89.56M | 181.05M | 28.63M |
| Net Income | 31.84M | 33.57M | 24.13M | 39.97M | 127.61M | 2.35M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 904.10M | 793.08M | 843.99M | 594.89M | 426.41M |
| Cash, Cash Equivalents and Short-Term Investments | 15.72M | 7.32M | 23.51M | 22.71M | 8.77M | 5.01M |
| Total Debt | 233.81M | 175.41M | 141.75M | 181.44M | 239.06M | 247.05M |
| Total Liabilities | 399.68M | 304.13M | 236.28M | 299.00M | 293.91M | 433.91M |
| Stockholders Equity | 617.22M | 599.97M | 556.80M | 545.00M | 291.37M | 2.55M |
Cash Flow | ||||||
| Free Cash Flow | -51.59M | -15.98M | 72.00M | 81.38M | 36.30M | -8.21M |
| Operating Cash Flow | -19.31M | 17.07M | 80.39M | 91.95M | 39.45M | -4.08M |
| Investing Cash Flow | -32.28M | -27.95M | -8.39M | -10.85M | -3.66M | -17.04M |
| Financing Cash Flow | 62.62M | -5.30M | -71.19M | -67.17M | -36.59M | 20.60M |
Shoals Technologies Group Technical Analysis
Positive
6.89
Price Trends
7.80
Positive
9.04
Negative
8.57
Positive
Market Momentum
0.24
Negative
63.72
Neutral
89.59
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 6.89 is below the 20-day moving average (MA) of 7.84, below the 50-day MA of 7.80, and below the 200-day MA of 8.57, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.59 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.07B | 21.57 | 26.32% | ― | 16.97% | 6.22% | |
62 Neutral | $4.34B | 31.88 | 12.28% | ― | -10.41% | -22.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.47B | 46.95 | 5.29% | ― | 46.88% | 50.24% | |
51 Neutral | $1.98B | -7.10 | -62.50% | ― | 37.91% | 84.96% | |
50 Neutral | $566.75M | -3.76 | -47.02% | ― | 1.18% | 44.68% | |
42 Neutral | $35.27M | -0.31 | 230.63% | ― | 59.53% | 5.67% |
* Technology Sector Average
SHLS
Shoals Technologies Group
8.74
-0.51
-5.51%
ENPH
Enphase Energy
32.81
-2.01
-5.77%
SEDG
SolarEdge Technologies
32.21
-4.25
-11.66%
ARRY
Array Technologies
3.68
-5.11
-58.13%
FTCI
FTC Solar
1.93
-6.07
-75.88%
NXT
Nextpower Inc
86.11
-0.85
-0.98%
Shoals Technologies Group Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Shoals Technologies amends credit agreement to streamline collateral
Positive
Aug 31, 2026
On August 28, 2026, Shoals Technologies Group, Inc. and certain subsidiaries executed an eighth amendment to their November 25, 2020 credit agreement with Wilmington Trust as collateral agent and JPMorgan Chase Bank as administrative agent. The ch...
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.