SHLS

Energy

Shoals Technologies Group, Inc. · Solar · $2B

UQS Score — Balanced Preset
48.8
Below Average

Shoals Technologies Group, Inc. scores 48.8/100 using the Balanced preset.

UQS vs Energy Sector
SHLS
48.8
Sector avg
43.5
Quality
Weak
Moat
Weak
Growth
Strong
Risk
Neutral
Valuation
Neutral

What is Shoals Technologies Group, Inc.?

Shoals Technologies Group is a specialized provider of electrical balance of system solutions for utility-scale solar energy projects across the United States. Founded in 1996 and headquartered in Portland, Tennessee, the company sits at the infrastructure layer of the clean energy buildout.

Shoals designs and manufactures the electrical components that connect solar panels to the broader power system — a category known as electrical balance of system, or EBOS. Its customers are primarily engineering, procurement, and construction firms that build large-scale solar installations. The company also sells EV charging solutions for public and fleet charging stations. Revenue is generated through product sales rather than recurring subscriptions, making project pipeline activity a key demand driver.

Shoals Technologies was founded in 1996 and is headquartered in Portland, Tennessee.

  • Cable assemblies and wire management solutions for solar arrays
  • Combiners, recombiners, and junction boxes for power aggregation
  • Inline fuses, disconnects, and transition enclosures
  • Wireless monitoring systems and IV curve benchmarking devices
  • EV charging infrastructure solutions for public and fleet operators

Is SHLS a Good Stock to Buy?

UQS Score rates SHLS as Good overall, reflecting a mixed profile where standout growth characteristics coexist with meaningful structural challenges.

The Growth pillar is the clearest bright spot — Shoals operates in a sector benefiting from sustained demand for solar infrastructure, and its revenue trajectory reflects that tailwind. The Valuation pillar also reads as Good, suggesting the market has not dramatically overpriced the growth story relative to fundamentals.

Both the Quality and Moat pillars register as Weak, pointing to limited competitive differentiation and profitability characteristics that trail stronger peers in the energy equipment space.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does SHLS pay dividends?

No — Shoals Technologies Group, Inc. does not currently pay a dividend.

Shoals Technologies does not currently pay a dividend. For a growth-oriented company in the solar infrastructure space, this is typical — available capital is directed toward expanding manufacturing capacity, developing new product lines, and capturing share in a rapidly growing market. Income-focused investors should factor this into their assessment.

When does SHLS report earnings?

Shoals Technologies reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

Quarterly results have reflected the broader dynamics of the utility-scale solar market — project timing, customer concentration, and supply chain conditions all influence period-to-period outcomes. The Growth pillar rating suggests the longer-term revenue trend has been constructive, though individual quarters can be uneven.

For the most recent quarter's results and guidance commentary, visit Shoals Technologies' investor relations page directly.

SHLS Price History

-75.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Shoals Technologies Group, Inc.?

$
Today it would be worth
$2,160
That's a -78.4% total return, or -26.4% annualized.

Based on Shoals Technologies Group, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

SHLS Long-term Outlook

The fundamental outlook for Shoals is shaped by two competing forces. On one hand, the energy transition is driving sustained demand for utility-scale solar installations, which directly benefits EBOS component suppliers. On the other hand, the Weak Quality and Moat ratings signal that Shoals may face margin pressure and competitive displacement risk as the market matures. The Risk pillar reads as Neutral — neither a major red flag nor a source of confidence — while the Good Valuation label suggests the current price reflects a reasonable balance of opportunity and uncertainty.

Growth drivers

  • Accelerating deployment of utility-scale solar projects across the US
  • Expanding EV charging infrastructure creating a secondary revenue stream
  • Increasing complexity of solar installations driving demand for integrated EBOS solutions

Key risks

  • Weak Moat rating indicates limited pricing power against competitors
  • Project-based revenue model creates lumpiness and customer concentration exposure
  • Policy or permitting slowdowns could delay solar project timelines and dampen demand

SHLS vs Peers

Shoals competes within a broader solar energy equipment landscape that includes tracker manufacturers, module producers, and power electronics specialists.

ARRYSHLS scores higher
Array Technologies, Inc.

Array focuses on solar tracking systems rather than EBOS, competing for wallet share on the same utility-scale project sites where Shoals operates.

CSIQSHLS scores higher
Canadian Solar Inc.

Canadian Solar is a vertically integrated module manufacturer and project developer, operating at a different layer of the solar value chain with a global footprint.

SEDGSHLS scores higher
SolarEdge Technologies, Inc.

SolarEdge specializes in inverters and power optimizers, targeting both utility-scale and distributed solar — overlapping with Shoals on large installations but serving distinct technical functions.

Frequently Asked Questions

What does Shoals Technologies do?

Shoals Technologies manufactures electrical balance of system components — the wiring, connectors, combiners, and monitoring devices that link solar panels into a functioning power system. It sells primarily to construction firms building utility-scale solar projects in the United States, and also offers EV charging infrastructure products.

Does SHLS pay dividends?

No, Shoals Technologies does not currently pay a dividend. The company reinvests available capital into product development and capacity expansion rather than returning cash to shareholders. Investors seeking income should look elsewhere in the energy sector.

When does SHLS report earnings?

Shoals reports on a quarterly cadence like most US-listed companies. Specific dates are not available through our data source — check the company's investor relations page for the current reporting schedule and any pre-announced guidance.

Is SHLS a good stock to buy?

UQS Score rates SHLS as Good overall. The Growth pillar is strong, reflecting the solar infrastructure tailwind, and Valuation reads as Good. However, Weak Quality and Moat ratings indicate real structural limitations. Whether that profile suits your portfolio depends on your risk tolerance and time horizon — view the full breakdown with a Pro account.

Is SHLS overvalued?

The UQS Valuation pillar for SHLS is rated Good, suggesting the stock is not obviously overpriced relative to its fundamentals. That said, valuation is one of five pillars — the Weak Quality and Moat scores are important context. The complete valuation metrics are available to Pro members.

How does SHLS compare to its competitors?

Shoals occupies a narrow but important niche — EBOS components — while peers like Array Technologies focus on trackers and SolarEdge on inverters. Canadian Solar operates as a module maker and developer. Each addresses a different layer of the solar value chain. UQS pillar comparisons across these tickers are available on their respective score pages.

What is SHLS's market cap bracket?

Shoals Technologies is classified as a small-cap company. This means it carries higher volatility and liquidity risk compared to large- or mega-cap peers, but also may offer more upside if the solar EBOS market expands as anticipated.

Who founded Shoals Technologies?

Shoals Technologies was founded in 1996. Detailed founding history, including key individuals involved, is publicly available through the company's official communications and investor relations materials.

Is SHLS a long-term quality investment?

As a long-term quality indicator, the UQS Score for SHLS is Good — driven largely by a Strong Growth pillar tied to durable solar infrastructure demand. The Weak Moat and Quality ratings are meaningful cautions for long-horizon investors, as they suggest the company's competitive position and profitability characteristics need to strengthen over time.

What is the main competitive advantage of Shoals Technologies?

Shoals has built product expertise in a specialized segment — EBOS — that most large energy companies do not focus on. Its integrated system approach and US-based manufacturing have supported customer relationships with major EPC firms. However, the UQS Moat pillar rates this advantage as Weak, indicating it may not be deeply entrenched.

What sector does SHLS belong to?

Shoals Technologies is classified in the Energy sector, specifically within the solar energy equipment and infrastructure segment. It is part of the broader clean energy transition theme, which includes solar, wind, and EV infrastructure companies. You can explore other [top energy stocks](/sector/energy) on UQS Score.

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Pro Analysis

SHLS — Score History

4045505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 14 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202648.833.522.094.053.154.6+2.3
May 10, 202646.515.822.094.044.677.2-0.6
May 8, 202647.115.822.094.044.681.3-3.3
May 7, 202650.434.822.094.058.657.7-0.1
May 3, 202650.534.822.094.058.658.2-0.1
Apr 27, 202650.634.822.094.058.659.00.0
Apr 26, 202650.634.822.094.058.658.9-0.4
Apr 19, 202651.034.822.094.058.661.6-0.3
Apr 18, 202651.334.822.094.058.663.7-3.5
Apr 16, 202654.834.822.094.058.686.90.0

SHLS — Pillar Breakdown

Quality

33.5/100 (25%)

Shoals Technologies Group, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

94.0/100 (20%)

Shoals Technologies Group, Inc. is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

53.1/100 (15%)

Shoals Technologies Group, Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

54.1/100 (15%)

Shoals Technologies Group, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

22/100 (25%)

Shoals Technologies Group, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SHLS.

Score Composition

Quality
33.5×25%8.4
Growth
94.0×20%18.8
Risk
53.1×15%8.0
Valuation
54.1×15%8.1
Moat
22.0×25%5.5
Total
48.8Below Average

Financial Data

More Stock Analysis

How is the SHLS UQS Score Calculated?

The UQS (Unified Quality Score) for Shoals Technologies Group, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Shoals Technologies Group, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Shoals Technologies Group, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.