Shoals Technologies is a solar electrical balance-of-systems company with extraordinary revenue growth of 75% year-over-year but a deeply negative free cash flow conversion of -206% relative to net income, quality below minimum thresholds, and a put-to-call ratio of 4.81 signaling extreme institutional bearishness.
Thesis pillars
- Extraordinary Revenue Growth Solar→Stable
- Mixed Earnings At Analyst Target↓Deteriorating
- Negative Fcf Quality Below Threshold→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 24, 2026· older than 90 days
Shoals Technologies Group, Inc. (SHLS) Stock Analysis
Momentum Cont setup
Technology · Solar
Hold if already holding. Not a fresh buy at $9.16, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Tennessee manufacturing facilities; Thin upside margin: 8.6%.
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components in the United States and internationally. The company designs, manufactures, and sells various products used by the solar and battery storage industries, including solar big... Read more
Hold if already holding. Not a fresh buy at $9.16, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Tennessee manufacturing facilities; Thin upside margin: 8.6%. Chart setup: Trend continuation, RSI 65, MACD bullish. Under M&A bid. Hold for deal completion or sell if spread < 3%. Score 5.7/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news boost earnings 0.80, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated Nov 4, 2026Recent Developments — Shoals Technologies Group, Inc.
Latest news
- NEWS Shoals Technologies Group and ARRAY Technologies Announce Definitive Merger Agreement — fiscal.ai Nov 4, 2026 neutral
- NEWS Shoals Technologies Gr Q3 2026 Earnings Call Transcript — benzinga Nov 4, 2026 neutral
- NEWS Shoals Technologies Group, Inc. Reports Third-Quarter 2026 Financial Results — fiscal.ai Nov 4, 2026
- NEWS Trading Halt: Halt status updated at 7:25:00 AM ET: Quotation Resumption: News and Resumption Times — benzinga Nov 4, 2026 neutral
- NEWS Shoals Technologies Group Raises FY2026 Sales Guidance from $600.000M-$640.000M to $665.000M-$685.000M vs $628.123M Est — benzinga Nov 4, 2026 positive
Latest item Nov 4, 2026 · Generated 2026-11-05T11:44:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierlimited number of vendors and suppliers10-K Item 1A: 'Our product development, manufacturing and testing processes are complex, involve a number of precise steps from design to production, and require significant technological and production process expertise, and therefore we depend on a limited number of vendors and suppliers.'
- HIGHGeographicTennessee manufacturing facilities10-K Item 1A: 'Our products are primarily manufactured and shipped from our production facilities in Tennessee, and any damage or disruption at these facilities may harm our business.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $9.16, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Tennessee manufacturing facilities; Thin upside margin: 8.6%. Chart setup: Trend continuation, RSI 65, MACD bullish. Under M&A bid. Hold for deal completion or sell if spread < 3%. Analyst target $9.95 (+8.6%), stop $8.52 (−7.5%), A.R:R 0.6:1. Score 5.7/10, moderate confidence.
Analyst target: $9.95 (+8.6% upside). Analyst target $9.95 (+8.6%), stop $8.52 (−7.5%), A.R:R 0.6:1. Stop-loss: $8.52.
Concentration risk — Geographic: Tennessee manufacturing facilities; Thin upside margin: 8.6%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0).
Shoals Technologies Group, Inc. trades at a P/E of 41.6 (forward 16.6). TrendMatrix value score: 6.4/10. Verdict: Hold.
24 analysts rate SHLS, with a consensus score of 3.9/5. 18 analysts publish price targets averaging $11.
What does Shoals Technologies Group, Inc. do?Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components in the United...
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components in the United States and internationally. The company designs, manufactures, and sells various products used by the solar and battery storage industries, including solar big lead assembly (BLA) solutions; homeruns, interconnection, and extension solutions; combiners and re-combiners; load break disconnects and transition solutions; wireless performance monitoring; and battery energy storage solutions (BESS). It also offers original equipment manufacturer (OEM) components; and technical support services during installation and the transition to operations and maintenance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.