SHLS
Shoals Technologies Group, Inc.

Shoals Technologies Group, Inc.SHLS

Technology · Solar
10.08USD
+12.06%
Nov 08, 2026
SHLS overview ready
Supplier of electrical balance-of-system hardware for utility-scale solar and storage
Shoals is a direct, project-level supplier of electrical balance-of-system hardware for utility-scale solar and increasingly battery-storage installations; its products reduce field wiring and installation complexity rather than owning generation assets or performing the full EPC scope.
Primary theme is improving
Solar is improving (+15.0pp vs SPY over 21 sessions; 8 of 11 members ahead of SPY).
Advancing price action
Longer-term context reads early recovery, with a near-term setup of daily reclaim.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Project development delays or cancellations in utility-scale solar and battery storage markets.
Market Nov 6Filing Sep 30Price action Nov 7Research Sep 29

Conviction Level

PriceAction8.0BusinessPerformance5.0BusinessQuality6.9Valuation3.0ThemeMomentum7.0Stable — Revenue is growing at a steady pace (+44% year over year). Diluted EPS is up 57% year over year at $0.11. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
SolarImproving
vs SPY
+15.0pp
Theme return
+10.0%
Beating SPY
8 of 11
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
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Price Action

Advancing price action
Longer-term context reads early recovery, with a near-term setup of daily reclaim.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$1.7B
Avg Volume (60D)
5.4M
60 sessions
Revenue Growth YoY
+19.1%
FY2025 vs FY2024
Gross Margin
+30.9%
Trailing twelve months
Operating Margin
+11.2%
Trailing twelve months
Free Cash Flow Yield
-2.0%
Distance from 200DMA
+19.2%
P/E
45.3x
EV / EBITDA
20.7x
EV / Sales
2.9x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Stable

Revenue is growing at a steady pace (+44% year over year). Diluted EPS is up 57% year over year at $0.11.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+44%
$195M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +39%
  2. +75%
  3. +47%
  4. +44%
Earnings growthGrowing
+57%
Diluted EPS $0.11 vs $0.07 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. n/a
  3. -13%
  4. +57%
Operating marginStable
14.8%
+1.1 pp YoY · gross margin 31.9% (-5.0 pp)
Profit is not fully converting to cash

Business Quality

6.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says expensive; own history is the dissenting view.
Shoals Technologies Group, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 20.7x EBITDA and 2.9x revenue, which require sustained delivery to be justified.

What changed

  • SHLS rose 12.1% in one session
    SHLS closed +12.1% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Shoals is a direct, project-level supplier of electrical balance-of-system hardware for utility-scale solar and increasingly battery-storage installations; its products reduce field wiring and installation complexity rather than owning generation assets or performing the full EPC scope. SHLS has a specific and direct exposure to U.S.
Opportunity
High opportunity
Factory-built electrical collection, interconnection, protection and power-distribution systems required to construct utility-scale solar plants and co-located battery-storage projects efficiently and reliably.
Key risk
Project development delays or cancellations in utility-scale solar and battery storage markets.

Economic classification

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Business & Markets

Technology · Solar
What they do

Shoals Technologies Group designs, manufactures, and sells electrical balance-of-system components and solutions used in utility-scale solar and battery storage projects, focusing on reducing field wiring and installation complexity.

How it earns

Shoals generates revenue primarily through transactional sales of hardware components and related technical support services.

Products & services
Solar big lead assembly (BLA) solutions
Homeruns, interconnection, and extension solutions
Combiners and re-combiners
Load break disconnects and transition solutions
Wireless performance monitoring
Battery energy storage solutions (BESS)
OEM electrical components
Technical support
Customers & end markets
Utility-scale solar project developers and EPC contractors
Battery storage project developers
Market position

Shoals is a leading direct supplier of electrical balance-of-system hardware for utility-scale solar and battery storage installations.

Demand drivers
Medium cyclicality

Demand depends on utility-scale solar and battery storage project development cycles influenced by policy and capital availability.