Shoals Technologies Group, Inc. Class A Common Stock
SHLS
$9.95
-1.68%
Shoals Technologies Group is a leading provider of electrical balance of system (EBOS) solutions for solar energy projects, primarily in the United States, supplying components that carry electric current from solar panels to inverters. As a specialized player in the solar supply chain, it holds a distinct position by focusing on the critical EBOS segment, which is essential for project efficiency and reliability. The current investor narrative centers on the company's recovery from a sharp downturn in early 2026, driven by a rebound in solar demand and improving margins, though concerns about policy uncertainty and competitive pressures persist.…
SHLS
Shoals Technologies Group, Inc. Class A Common Stock
$9.95
SHLS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Shoals Technologies Group, Inc. Class A Common Stock's 12-month outlook, with a consensus price target around $12.93 and implied upside of +29.9% versus the current price.
Average Target
$12.93
13 analysts
Implied Upside
+29.9%
vs. current price
Analyst Count
13
covering this stock
Price Range
$8 - $13
Analyst target range
The stock is covered by 13 analysts, but specific buy/hold/sell distribution and average target price are not provided. However, the estimated EPS range of $0.561 to $0.646 and revenue range of $740M to $824M suggest a consensus view of moderate growth. Without explicit targets, the implied upside/downside cannot be calculated, but the forward PE of 19.76x relative to estimated EPS of $0.603 implies a price target around $11.92 (19.76 * 0.603), which is above the current price of $9.95, suggesting potential upside. The wide range in estimates (EPS low $0.561 vs high $0.646) indicates moderate uncertainty. If institutional ratings data were available, it would provide further insight, but the limited data suggests a cautiously optimistic outlook among analysts.
SHLS Technical Analysis
The stock has experienced a volatile recovery, with a 1-year price change of +81.9%, but it remains well below its 52-week high of $13.18, currently trading at 75.5% of the 52-week range ($9.95 vs. $4.43 low). This positioning near the midpoint suggests a stock in transition, having rebounded sharply from its lows but still facing resistance at prior highs, indicating cautious optimism. The 1-year trend is bullish, but the stock is not yet confirming a sustained uptrend above key resistance. Short-term momentum shows a stark divergence: the 1-month change is -20.1%, while the 3-month change is +45.9%, and the 1-year change is +81.9%. This indicates that the stock has pulled back sharply in the last month after a strong rally, potentially signaling a temporary correction or profit-taking within a longer-term uptrend. The conflicting trends suggest the stock is at a critical juncture, where the short-term weakness could either be a buying opportunity or the start of a deeper reversal. The 52-week low of $4.43 provides strong support, while the 52-week high of $13.18 is a clear resistance level. A breakout above $13.18 would signal a resumption of the uptrend, while a breakdown below $4.43 would indicate a bearish reversal. With a beta of 1.904, the stock is nearly twice as volatile as the S&P 500, meaning it amplifies market moves, which is crucial for risk management.
Beta
1.90
1.90x market volatility
Max Drawdown
-47.4%
Largest decline past year
52-Week Range
$4-$13
Price range past year
Annual Return
+81.9%
Cumulative gain past year
| Period | SHLS Return | S&P 500 |
|---|---|---|
| 1m | -20.1% | +1.0% |
| 3m | +45.9% | +13.0% |
| 6m | +9.5% | +7.7% |
| 1y | +81.9% | +19.1% |
| ytd | +9.5% | +9.2% |
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SHLS Fundamental Analysis
Revenue trajectory appears to be recovering, with estimated revenue for the current fiscal year at $781.7 million, though specific quarterly figures are not provided. The company's net margin of 7.06% indicates profitability, but the EPS of $0.024 is very low, suggesting thin earnings relative to share count. The gross margin of 35.03% and operating margin of 11.86% are healthy for a solar component supplier, indicating decent pricing power and cost control. Profitability is positive with net income, but the low net margin of 7.06% leaves little room for error. The ROE of 5.60% and ROA of 5.45% suggest moderate returns on equity and assets, which are acceptable but not stellar. The balance sheet appears solid with a current ratio of 2.03, indicating ample liquidity to cover short-term obligations. Debt-to-equity is low at 0.29, suggesting conservative leverage. Free cash flow data is not provided, but the PCF ratio of 83.3 implies high valuation relative to cash flow, which could be a concern if cash generation is weak.
Quarterly Revenue
N/A
N/A
Revenue YoY Growth
N/A
YoY Comparison
Gross Margin
N/A
Latest Quarter
Free Cash Flow
N/A
Last 12 Months
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Valuation Analysis: Is SHLS Overvalued?
Since net income is positive (EPS $0.024), the PE ratio is the primary metric. The trailing PE is 42.5x, while the forward PE is 19.76x, implying the market expects significant earnings growth. The gap between trailing and forward PE suggests aggressive growth expectations, which could be optimistic. Compared to the solar industry average PE (not provided), the stock's forward PE of 19.76x may be at a premium or discount depending on the sector. The PS ratio of 2.99x and EV/Sales of 3.52x provide alternative perspectives. The PEG ratio of 0.99 suggests the stock is fairly valued relative to its expected earnings growth rate, which is a positive sign. Historical ratios are not available, but the current trailing PE of 42.5x is likely above historical averages given the company's recent volatility and earnings challenges, indicating the market is pricing in a strong recovery.
PE
42.5x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.7x
Enterprise Value Multiple

