Shoals Technologies Group, Inc. (SHLS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-33.4%

$5.06

vs $7.60 price

Levered DCF

$5.37

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

3.12

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	42.5×	39.5×	64.75×	22.23×	1,157.14×	147.52×	206.53×	574.77×
P/B	2.37×	1.67×	4.68×	9.69×	1,066.52×	-26.97×	33.12×	35.91×
P/S	2.99×	2.34×	5.22×	8.64×	12.77×	28.29×	34.36×	47.86×
EV / EBITDA	21.98×	16.33×	30.26×	16.87×	103.55×	113.84×	138.1×	249.29×
Gross margin	35.0%	35.6%	34.4%	40.2%	38.8%	37.9%	30.6%	27.1%
Operating margin	11.9%	12.8%	16.2%	20.3%	17.0%	21.2%	18.6%	10.7%
Net margin	7.1%	6.0%	8.2%	39.0%	1.1%	19.2%	17.4%	8.3%
Current ratio	2.03×	2.33×	2.45×	2.92×	2.96×	2.33×	1.9×	3.29×
Debt / equity	0.29×	0.25×	0.33×	0.82×	96.77×	-1.95×	0.17×	0.29×
Interest coverage	5.64×	3.7×	3.28×	3.58×	2.49×	10.62×	15.07×	4.54×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	7.6%	0.3%	0.2%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	1113.7%	55.6%	123.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.6%	4.3%	7.3%	43.8%	92.0%	-18.3%	16.8%	6.3%
Return on invested capital	5.0%	4.6%	8.1%	11.5%	8.9%	21.3%	15.3%	6.2%
Return on assets	3.7%	3.0%	4.7%	21.5%	0.6%	17.3%	13.4%	4.7%
Free cash flow yield	-1.1%	7.7%	3.2%	1.3%	-0.3%	1.0%	0.7%	0.0%
Earnings yield	2.4%	2.6%	1.6%	4.5%	0.1%	0.7%	0.5%	0.2%
Enterprise value	$1.6B	$1.1B	$2.7B	$3.1B	$3B	$5.3B	$5B	$5B
Net debt / EBITDA	2.32×	1.84×	1.77×	1.27×	8.45×	7.47×	0.53×	1.96×
Cash conversion cycle (days)	145	142	154	193	128	66	70	110