Shoals Technologies Group, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MACOM Technology Solutions Holdings, Inc.

Silicon Laboratories, Inc.

Cirrus Logic, Inc.

IPG Photonics Corp.

Shoals Technologies Group, Inc.

Power Integrations, Inc.

Amkor Technology, Inc.

Diodes, Inc.

Array Technologies, Inc.

Synaptics, Inc.

Wolfspeed, Inc.

Why is Shoals Technologies Group, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 55.93% and Operating profit at 52.68%

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At USD 21.39 MM has Grown at -35.49%
OPERATING CASH FLOW(Y) Lowest at USD 31.43 MM
ROCE(HY) Lowest at 3.77%

With ROCE of 6.60%, it has a expensive valuation with a 1.46 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 85.41%, its profits have fallen by -37.4%

Market Beating Performance

The stock has generated a return of 85.41% in the last 1 year, much higher than market (S&P 500) returns of 11.09%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shoals Technologies Group, Inc. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shoals Technologies Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shoals Technologies Group, Inc.

85.41%

0.31

86.74%

S&P 500

11.09%

0.56

19.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

55.93%

EBIT Growth (5y)

52.68%

EBIT to Interest (avg)

3.77

Debt to EBITDA (avg)

3.37

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.60

Tax Ratio

41.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.84%

ROE (avg)

60.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.54

EV to EBIT

22.07

EV to EBITDA

17.05

EV to Capital Employed

1.46

EV to Sales

2.49

PEG Ratio

Dividend Yield

ROCE (Latest)

6.60%

ROE (Latest)

3.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 864.62

NET SALES(Q)

Highest at USD 110.84 MM

PRE-TAX PROFIT(Q)

Highest at USD 16.97 MM

NET PROFIT(Q)

Highest at USD 13.86 MM

EPS(Q)

Highest at USD 0.08

-8What is not working for the Company

NET PROFIT(9M)

At USD 21.39 MM has Grown at -35.49%

OPERATING CASH FLOW(Y)

Lowest at USD 31.43 MM

ROCE(HY)

Lowest at 3.77%

RAW MATERIAL COST(Y)

Grown by 7.4% (YoY

Here's what is working for Shoals Technologies Group, Inc.

Net Profit

At USD 13.86 MM has Grown at 190.6%

over average net sales of the previous four periods of USD 4.77 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 864.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At USD 16.97 MM has Grown at 107.89%

over average net sales of the previous four periods of USD 8.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Sales

Highest at USD 110.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 16.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 13.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Depreciation

Highest at USD 3.33 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Shoals Technologies Group, Inc.

Operating Cash Flow

Lowest at USD 31.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 7.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales