📊 SHLS Key Takeaways
Is Shoals Technologies Group, Inc. (SHLS) a Good Investment?
Despite 19.1% revenue growth, Shoals Technologies faces deteriorating fundamentals with net income flat YoY and negative free cash flow of -16M, indicating margin compression and unsustainable capital spending. Low returns on equity (5.6%) and assets (3.7%) demonstrate poor capital efficiency, and with operating cash flow of only 17.1M against 33M capex, the company is burning cash despite reported profitability.
Why Buy Shoals Technologies Group, Inc. Stock? SHLS Key Strengths
- Strong revenue growth of 19.1% YoY demonstrates market demand
- Healthy balance sheet with manageable debt-to-equity ratio of 0.23x and 12.9x interest coverage
- Solid liquidity with current ratio of 2.03x and quick ratio of 1.32x
SHLS Stock Risks: Shoals Technologies Group, Inc. Investment Risks
- Net income flat at 0% growth while revenue grows 19.1% signals margin compression and operational inefficiency
- Negative free cash flow of -16M with capex (33M) exceeding operating cash flow (17.1M) is unsustainable
- Low returns on capital with ROE of 5.6% and ROA of 3.7% indicate poor capital allocation efficiency
- Net profit margin of only 7.1% suggests intense competitive pressure or rising cost structure
Key Metrics to Watch
- Gross margin trend - must stabilize above 35% to prevent further dilution
- Operating cash flow growth - must exceed capital expenditure to restore positive FCF
- Operating margin expansion - needs to move above 12% to support profitability at scale
Shoals Technologies Group, Inc. (SHLS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.03x current ratio provides a solid financial cushion.
SHLS Profit Margin, ROE & Profitability Analysis
SHLS vs Technology Sector: How Shoals Technologies Group, Inc. Compares
How Shoals Technologies Group, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Shoals Technologies Group, Inc. Stock Overvalued? SHLS Valuation Analysis 2026
Based on fundamental analysis, Shoals Technologies Group, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Shoals Technologies Group, Inc. Balance Sheet: SHLS Debt, Cash & Liquidity
SHLS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Shoals Technologies Group, Inc.'s revenue has grown significantly by 129% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.24 reflects profitable operations.
SHLS Revenue Growth, EPS Growth & YoY Performance
SHLS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $102.2M | -$267.0K | $0.00 |
| Q2 2025 | $99.2M | -$282.0K | $0.07 |
| Q1 2025 | $80.4M | -$282.0K | $0.00 |
| Q3 2024 | $102.2M | -$267.0K | $0.00 |
| Q2 2024 | $99.2M | $11.8M | $0.07 |
| Q1 2024 | $90.8M | $4.8M | $0.03 |
| Q3 2023 | $90.8M | $8.0M | $-0.06 |
| Q2 2023 | $73.5M | $4.4M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Shoals Technologies Group, Inc. Dividends, Buybacks & Capital Allocation
SHLS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Shoals Technologies Group, Inc. (CIK: 0001831651)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SHLS
What is the AI rating for SHLS?
Shoals Technologies Group, Inc. (SHLS) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHLS's key strengths?
Claude: Strong revenue growth of 19.1% YoY demonstrates market demand. Healthy balance sheet with manageable debt-to-equity ratio of 0.23x and 12.9x interest coverage.
What are the risks of investing in SHLS?
Claude: Net income flat at 0% growth while revenue grows 19.1% signals margin compression and operational inefficiency. Negative free cash flow of -16M with capex (33M) exceeding operating cash flow (17.1M) is unsustainable.
What is SHLS's revenue and growth?
Shoals Technologies Group, Inc. reported revenue of $475.3M.
Does SHLS pay dividends?
Shoals Technologies Group, Inc. does not currently pay dividends.
Where can I find SHLS SEC filings?
Official SEC filings for Shoals Technologies Group, Inc. (CIK: 0001831651) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SHLS's EPS?
Shoals Technologies Group, Inc. has a diluted EPS of $0.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SHLS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Shoals Technologies Group, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SHLS stock overvalued or undervalued?
Valuation metrics for SHLS: ROE of 5.6% (sector avg: 22%), net margin of 7.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SHLS stock in 2026?
Our dual AI analysis gives Shoals Technologies Group, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SHLS's free cash flow?
Shoals Technologies Group, Inc.'s operating cash flow is $17.1M, with capital expenditures of $33.0M. FCF margin is -3.4%.
How does SHLS compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.1% (avg: 18%), ROE 5.6% (avg: 22%), current ratio 2.03 (avg: 2.5).