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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#539
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$1.2B
Jason Whitaker
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SHLS ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SHLS Shoals Technologies Group, Inc. | 62 | 57 | 65 | 80 | 70.5x | 34.1x | 4.3% | 3.0% | 33.5% | 9.5% | 5.2% | 36.8% | 0.0% | 44.0x | $1.2B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Shoals Technologies Group, Inc. (SHLS) receives a "Hold" rating with a composite score of 61.6/100. It ranks #539 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for SHLS.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 57 | 56 | +1NEUTRAL |
| MOMENTUM | 80 | 87 | -7DRAG |
| VALUATION | 65 | 62 | +3NEUTRAL |
| INVESTMENT | 34 | 55 | -21DRAG |
| STABILITY | 45 | 36 | +9ALPHA |
| SHORT INT | 62 | 73 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 11.8% vs WACC 9.2% (spread +2.6%)
GM 34% vs sector 44%, OM 9% vs sector 3%
Capital turnover 1.15x
Rev growth 37%, 5yr history
Interest coverage 6.6x, Net debt/EBITDA 5.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Shoals Technologies Group, Inc. (SHLS) as a Hold with a composite score of 61.6/100 at a current price of $6.93. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Shoals Technologies Group, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 61.6/100 places it at rank #539 in our full universe.
The near-term outlook is constructive, with revenue growing at 37% and momentum in the 80th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Medium
Poor
Undervalued
Value factor score of 65 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 70.5x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Shoals Technologies Group, Inc. represents a hold based on multi-factor quantitative performance.
Our model assigns Shoals Technologies Group, Inc. a Hold rating, with a composite score of 61.6/100 and 3 out of 5 stars. Ranked #539 of 7,333 stocks, SHLS presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 57/100, SHLS shows adequate but unremarkable business quality. The company reports a return on equity of 4.3% (sector avg: -1.9%), gross margins of 33.5% (sector avg: 44.1%), net margins of 5.2% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
SHLS's value score of 65/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 70.52x, an EV/EBITDA of 34.12x, a P/B ratio of 3.01x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Shoals Technologies Group, Inc.'s investment score of 34/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 36.8% vs. a sector average of 6.7% and a return on assets of 3.0% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SHLS shows strong momentum characteristics with a score of 80/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 36.8% year-over-year, while a beta of 1.35 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 45/100, SHLS exhibits average financial resilience. Key stability metrics include a beta of 1.35 and a debt-to-equity ratio of 44.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
SHLS carries a short interest score of 62/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include above-average market sensitivity (beta: 1.35), elevated leverage (D/E: 44.00x), small-cap liquidity risk. At $1.2B market cap (small-cap), Shoals Technologies Group, Inc. offers reasonable institutional liquidity.
Shoals Technologies Group, Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #539 of 7,333 overall (93rd percentile). Key comparisons include ROE of 4.3% exceeding the -1.9% sector median and operating margins of 9.5% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SHLS currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Momentum (80) vs Investment (34) — closing this gap could shift the rating.
EV/EBITDA 198% ABOVE SECTOR MEDIAN
ROE 325% BELOW SECTOR MEDIAN
Gross Margin 24% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Stock Market Today: The Dow Jones index climbs Tuesday after Monday's sell-off. Online marketplace platform operator tumbles.
Shoals Technologies Group Inc (SHLS) reports a 38.6% revenue increase and a record backlog, while facing challenges with profitability and tariffs.
Solar energy systems company Shoals (NASDAQ:SHLS) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 38.6% year on year to $148.3 million. On top of that, next quarter’s revenue guidance ($130 million at the midpoint) was surprisingly good and 9.6% above what analysts were expecting. Its non-GAAP profit of $0.10 per share was 28.4% below analysts’ consensus estimates.
Shoals Technologies (SHLS) Q4 earnings: EPS miss, revenue beat, record backlog and 2026 guidance.
Shoals Technologies Group (NASDAQ:SHLS) reported fourth-quarter 2025 revenue of $148.3 million, up 38.6% year over year, as management pointed to higher domestic project volume and contributions from international, community/commercial/industrial (CC&I), and OEM channels. The company said quarte