Shoals Technologies Group, Inc.

NasdaqGM:SHLS Stock Report

Market Cap: US$771.8m

Shoals Technologies Group Valuation

Is SHLS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SHLS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$12.33
Fair Value
62.4% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: SHLS ($4.63) is trading below our estimate of fair value ($12.33)

Significantly Below Fair Value: SHLS is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHLS?

Key metric: As SHLS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SHLS. This is calculated by dividing SHLS's market cap by their current earnings.
What is SHLS's PE Ratio?
PE Ratio23.5x
EarningsUS$32.89m
Market CapUS$771.82m

Price to Earnings Ratio vs Peers

How does SHLS's PE Ratio compare to its peers?

The above table shows the PE ratio for SHLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
THR Thermon Group Holdings
22.5x21.1%US$988.3m
PLPC Preformed Line Products
18.7xn/aUS$616.6m
LYTS LSI Industries
23.5x17.2%US$554.7m
ALNT Allient
30x30.8%US$434.6m
SHLS Shoals Technologies Group
23.5x24.1%US$771.8m

Price-To-Earnings vs Peers: SHLS is good value based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (23.7x).


Price to Earnings Ratio vs Industry

How does SHLS's PE Ratio compare vs other companies in the US Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CGEH Capstone Green Energy Holdings
1.5xn/aUS$21.83m
KRFG OneSolution Technology
1xn/aUS$1.33m
No more companies available in this PE range
SHLS 23.5xIndustry Avg. 23.5xNo. of Companies8PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHLS is good value based on its Price-To-Earnings Ratio (23.5x) compared to the US Electrical industry average (23.5x).


Price to Earnings Ratio vs Fair Ratio

What is SHLS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHLS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.5x
Fair PE Ratio29.7x

Price-To-Earnings vs Fair Ratio: SHLS is good value based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SHLS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.63
US$7.30
+57.8%
28.5%US$11.00US$4.00n/a23
Jan ’26US$5.53
US$7.57
+36.8%
27.7%US$12.00US$5.00n/a23
Dec ’25US$5.22
US$7.61
+45.8%
28.1%US$12.00US$5.00n/a23
Nov ’25US$5.55
US$8.45
+52.3%
26.1%US$12.00US$5.00n/a22
Oct ’25US$5.44
US$8.86
+62.9%
30.5%US$14.00US$4.00n/a22
Sep ’25US$5.39
US$9.67
+79.3%
35.5%US$19.00US$4.00n/a21
Aug ’25US$6.23
US$12.62
+102.6%
32.1%US$23.00US$5.00n/a21
Jul ’25US$6.11
US$13.90
+127.6%
27.6%US$21.00US$6.00n/a21
Jun ’25US$7.87
US$13.90
+76.7%
27.6%US$21.00US$6.00n/a21
May ’25US$8.50
US$17.90
+110.6%
23.7%US$26.00US$10.00n/a21
Apr ’25US$11.38
US$18.43
+61.9%
22.6%US$26.00US$10.00n/a21
Mar ’25US$13.35
US$18.95
+41.9%
20.5%US$26.00US$10.00n/a20
Feb ’25US$14.17
US$24.11
+70.1%
29.4%US$42.00US$11.00n/a19
Jan ’25US$15.54
US$24.67
+58.7%
29.1%US$42.00US$11.00US$5.5318
Dec ’24US$14.83
US$25.44
+71.6%
27.3%US$42.00US$11.00US$5.2218
Nov ’24US$14.45
US$28.35
+96.2%
25.9%US$42.00US$15.00US$5.5517
Oct ’24US$18.25
US$29.94
+64.0%
23.3%US$42.00US$15.00US$5.4416
Sep ’24US$20.53
US$30.88
+50.4%
20.1%US$42.00US$20.00US$5.3916
Aug ’24US$26.11
US$30.94
+18.5%
20.3%US$42.00US$19.00US$6.2316
Jul ’24US$25.56
US$30.81
+20.5%
19.7%US$42.00US$19.00US$6.1116
Jun ’24US$24.28
US$30.81
+26.9%
19.7%US$42.00US$19.00US$7.8716
May ’24US$20.29
US$31.07
+53.1%
17.8%US$41.00US$20.00US$8.5015
Apr ’24US$22.79
US$31.27
+37.2%
17.6%US$41.00US$20.00US$11.3815
Mar ’24US$25.15
US$30.87
+22.7%
18.5%US$41.00US$20.00US$13.3515
Feb ’24US$28.07
US$31.00
+10.4%
18.3%US$41.00US$20.00US$14.1715
Jan ’24US$24.67
US$31.32
+27.0%
20.0%US$41.00US$20.00US$15.5414
Analyst Price Target
Consensus Narrative from 23 Analysts
US$7.30
Fair Value
36.6% undervalued intrinsic discount
23
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/19 10:10
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Shoals Technologies Group, Inc. is covered by 29 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christine ChoBarclays
Moses SuttonBNP Paribas Exane
Dimple GosaiBofA Global Research