Shoals Technologies Valuation

SHLS Stock  USD 5.85  0.29  4.72%   
At this time, the company appears to be undervalued. Shoals Technologies has a current Real Value of $7.63 per share. The regular price of the company is $5.85. Our model measures the value of Shoals Technologies from inspecting the company fundamentals such as Operating Margin of 0.16 %, return on equity of 0.0581, and Shares Outstanding of 167.39 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shoals Technologies' valuation include:
Price Book
1.6919
Enterprise Value
1.2 B
Enterprise Value Ebitda
15.997
Price Sales
2.0812
Forward PE
13.245
Undervalued
Today
5.85
Please note that Shoals Technologies' price fluctuation is moderately volatile at this time. Calculation of the real value of Shoals Technologies is based on 3 months time horizon. Increasing Shoals Technologies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Shoals stock is determined by what a typical buyer is willing to pay for full or partial control of Shoals Technologies Group. Since Shoals Technologies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Shoals Stock. However, Shoals Technologies' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  5.85 Real  7.63 Target  9.73 Hype  6.07 Naive  4.22
The intrinsic value of Shoals Technologies' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Shoals Technologies' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
7.63
Real Value
13.57
Upside
Estimating the potential upside or downside of Shoals Technologies Group helps investors to forecast how Shoals stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Shoals Technologies more accurately as focusing exclusively on Shoals Technologies' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.040.060.09
Details
Hype
Prediction
LowEstimatedHigh
0.136.0712.01
Details
Naive
Forecast
LowNext ValueHigh
0.084.2210.16
Details
21 Analysts
Consensus
LowTarget PriceHigh
8.859.7210.79
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Shoals Technologies' intrinsic value based on its ongoing forecasts of Shoals Technologies' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Shoals Technologies' closest peers.

Shoals Technologies Cash

11.63 Million

Shoals Revenue by Product

Shoals Technologies Total Value Analysis

Shoals Technologies Group is at this time expected to have valuation of 1.16 B with market capitalization of 989.27 M, debt of 175.41 M, and cash on hands of 11.2 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Shoals Technologies fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
1.16 B
989.27 M
175.41 M
11.2 M

Shoals Technologies Investor Information

About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.69. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Shoals Technologies has Price/Earnings To Growth (PEG) ratio of 0.55. The entity had not issued any dividends in recent years. Based on the key indicators related to Shoals Technologies' liquidity, profitability, solvency, and operating efficiency, Shoals Technologies Group may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.180.1186
Way Up
Slightly volatile
Operating Income50.1 M56.4 M
Fairly Down
Slightly volatile

Shoals Technologies Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Shoals Technologies has an asset utilization ratio of 52.57 percent. This implies that the Company is making $0.53 for each dollar of assets. An increasing asset utilization means that Shoals Technologies Group is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

Shoals Technologies Profitability Analysis

Based on Shoals Technologies' profitability indicators, Shoals Technologies' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Shoals Technologies' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2019-12-31
Previous Quarter
11.9 M
Current Value
8.1 M
Quarterly Volatility
22.2 M
 
Covid
 
Interest Hikes
At this time, Shoals Technologies' Pretax Profit Margin is comparatively stable compared to the past year. Operating Profit Margin is likely to gain to 0.18 in 2026, whereas Gross Profit is likely to drop slightly above 114.1 M in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.3503
Significantly Down
Slightly volatile
Net Profit Margin0.06710.0706
Notably Down
Pretty Stable
Operating Profit Margin0.180.1186
Way Up
Slightly volatile
Pretax Profit Margin0.180.1021
Way Up
Slightly volatile
Return On Assets0.03530.0371
Notably Down
Pretty Stable
For Shoals Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shoals Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shoals Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shoals Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shoals Technologies over time as well as its relative position and ranking within its peers.

Shoals Technologies Earnings per Share Projection vs Actual

The next projected EPS of Shoals Technologies is estimated to be 0.063 with future projections ranging from a low of 0.04 to a high of 0.09. Shoals Technologies' most recent 12-month trailing earnings per share (EPS TTM) is at 0.2. Please be aware that the consensus of earnings estimates for Shoals Technologies Group is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Shoals Technologies is projected to generate 0.063 in earnings per share on the 31st of March 2026. Shoals Technologies earnings estimates show analyst consensus about projected Shoals Technologies EPS (Earning Per Share). It derives the highest and the lowest estimates based on Shoals Technologies' historical volatility. Many public companies, such as Shoals Technologies, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Shoals Technologies Earnings Estimation Breakdown

The calculation of Shoals Technologies' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Shoals Technologies is estimated to be 0.063 with the future projection ranging from a low of 0.04 to a high of 0.09. Please be aware that this consensus of annual earnings estimates for Shoals Technologies Group is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.1
0.04
Lowest
Expected EPS
0.063
0.09
Highest

Shoals Technologies Earnings Projection Consensus

Suppose the current estimates of Shoals Technologies' value are higher than the current market price of the Shoals Technologies stock. In this case, investors may conclude that Shoals Technologies is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Shoals Technologies' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
2164.1%
0.1
0.063
0.2

Shoals Technologies Ownership Allocation

The majority of Shoals Technologies outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Shoals Technologies to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Shoals Technologies. Please pay attention to any change in the institutional holdings of Shoals Technologies Group as this could imply that something significant has changed or is about to change at the company.

Shoals Technologies Profitability Analysis

The company reported the previous year's revenue of 475.33 M. Net Income was 33.57 M with profit before overhead, payroll, taxes, and interest of 166.51 M.

About Shoals Technologies Valuation

The stock valuation mechanism determines Shoals Technologies' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Shoals Technologies based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Shoals Technologies. We calculate exposure to Shoals Technologies's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Shoals Technologies's related companies.
Last ReportedProjected for Next Year
Gross Profit166.5 M114.1 M
Pretax Profit Margin 0.10  0.18 
Operating Profit Margin 0.12  0.18 
Net Profit Margin 0.07  0.07 
Gross Profit Margin 0.35  0.28 

Shoals Technologies Growth Indicators

Investing in growth stocks can be very risky. If the company such as Shoals Technologies does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding168.4 M
Quarterly Earnings Growth Y O Y0.21
Forward Price Earnings13.245

Shoals Technologies Current Valuation Indicators

Shoals Technologies' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Shoals Technologies' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Shoals Technologies, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Shoals Technologies' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Shoals Technologies' worth.

Additional Tools for Shoals Stock Analysis

When running Shoals Technologies' price analysis, check to measure Shoals Technologies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shoals Technologies is operating at the current time. Most of Shoals Technologies' value examination focuses on studying past and present price action to predict the probability of Shoals Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shoals Technologies' price. Additionally, you may evaluate how the addition of Shoals Technologies to your portfolios can decrease your overall portfolio volatility.