Shoals Technologies Group, Inc. (SHLS) AI Stock Analysis

Shoals Technologies Group, Inc. specializes in providing innovative electrical balance of system (EBOS) solutions tailored for solar energy projects across the United States. The company designs and manufactures EBOS components essential for solar installations, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, and wire management solutions. Additionally, Shoals offers advanced IV curve benchmarking devices. The company extends its expertise to EV Charging solutions for public and fleet charging stations, serving engineering, procurement, and construction firms from its headquarters in Portland, Tennessee.

Shoals Technologies Group grew revenue from $213.2M in FY2021 to $326.9M in FY2022 and $488.9M in FY2023. Revenue fell 18.4% in FY2024 to $399.2M before rebounding 19.1% to $475.3M in FY2025. Across the 5 years from FY2020 to FY2025, revenue achieved a compound annual growth rate of 22.0%. Gross margin stood at 35.0% in FY2025, while operating margin was 11.9% and net income reached $33.6M. For the latest quarter ended June 30, 2026, quarterly revenue growth reached 47.4% year-over-year, while quarterly earnings declined 12.5%, contributing to trailing twelve-month revenue of $588.1M and a net profit margin of 5.4%.

As of June 30, 2026, Shoals held $15.7M in cash and short-term investments against total debt of $233.8M, resulting in net debt of $218.1M. Total assets stood at $1.02B alongside shareholders' equity of $617.2M, yielding a debt-to-equity ratio of 0.38 and a current ratio of 2.25. During FY2025, operating cash flow was $17.1M, capital expenditures were $33.0M, and free cash flow was -$16.0M. Cash deployed for share buybacks totaled $362,000 in FY2025.

At a last close of $7.17 on October 16, 2026, Shoals has a market capitalization of $1.21B and an enterprise value of $1.52B. The stock trades at a trailing price-to-earnings multiple of 37.7x, above the 28.1x median of its US-listed Technology peers. Its forward P/E is 12.9x, below the peer median of 18.8x, and price-to-sales is 2.1x compared to the peer median of 2.8x. Over the past year, the shares fell 29.2%, while the S&P 500 (SPY) returned 16.8%.

Wall Street coverage includes 8 Strong Buy, 4 Buy, 6 Hold, and 1 Sell ratings, with 0 Strong Sell recommendations. The mean price target is $11.11, representing 55.0% upside versus the last close of $7.17. For the fiscal year ending December 31, 2026, analysts estimate revenue of $626.3M and EPS of $0.44, representing EPS growth of 22.4%. Shoals has beaten EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Shoals Technologies Group, Inc. (SHLS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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