Fact based stock research
Shoals (NasdaqGM:SHLS)

US82489W1071

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Shoals stock research in summary

shoals.com

ANALYSIS: With an Obermatt Combined Rank of 36 (worse than 64% compared with investment alternatives), Shoals (Electr. Components & Equipment, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Shoals are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 36, is a hold recommendation based on Shoals's financial characteristics. As the company Shoals's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 29) and risky financing practices (Obermatt Safety Rank of 46), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	67
Growth Rank	29
Safety Rank	46
Combined Rank	36

Country	USA
Industry	Electr. Components & Equipment
Index	NASDAQ
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Shoals

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	31	13	67
GROWTH
GROWTH	n/a	75	91	29
SAFETY
SAFETY	n/a	14	6	46
SENTIMENT
SENTIMENT	n/a	32	77	^new
360° VIEW
360° VIEW	n/a	17	36	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Shoals is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	31	13	67
GROWTH
GROWTH	n/a	75	91	29
SAFETY
SAFETY	n/a	14	6	46
COMBINED
COMBINED	n/a	24	21	36

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Shoals the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Shoals shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Shoals. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than for 60% of comparable companies, indicating a good value regarding Shoals's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 89% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Shoals (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Shoals's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	13	24	60
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	21	43	89
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	100	35	83
DIVIDEND YIELD
DIVIDEND YIELD	n/a	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	31	13	67

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Shoals; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Shoals shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Shoals. Only Capital Growth has a good rank of 98, which means that currently professionals expect the company to grow its invested capital more than 21% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 37 which means that currently professionals expect the company to grow less than 63% of its competitors. Profit Growth with a rank of 21 and Stock Returns with a rank of 11 are also low (below 89% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Shoals is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	88	88	37
PROFIT GROWTH
PROFIT GROWTH	n/a	17	90	21
CAPITAL GROWTH
CAPITAL GROWTH	n/a	97	77	98
STOCK RETURNS
STOCK RETURNS	n/a	25	29	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	75	91	29

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Shoals.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company Shoals has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Shoals is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Shoals and the other two below average. Leverage is at a rank of 53 meaning the company has a below-average debt-to-equity ratio. It has less debt than 53% of its competitors.Refinancing is at a rank of 49, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. Liquidity is at a rank of 37, meaning that the company generates less profit to service its debt than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), Shoals has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Shoals are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Shoals and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	1	22	53
REFINANCING
REFINANCING	n/a	5	11	49
LIQUIDITY
LIQUIDITY	n/a	68	41	37
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	14	6	46

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shoals and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	32	68	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	55	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	72	53	^new
MARKET PULSE
MARKET PULSE	n/a	14	66	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	32	77	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Shoals.
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