Is the business good?
How good a business is SHLS?
Shoals Technologies Group, Inc. earns 7.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.9%
Return on invested capital · cost of capital 9.0% · 1.1 points below what the capital costs: growth destroys value
- Operating margin
- 11%
Operating margin · Solar median 4.8% · 12 months to Q1 2026
- Share count, year on year
- +0.36%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 34%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 17% |
| FY2022 | 20% |
| FY2023 | 16% |
| FY2024 | 13% |
| FY2025 | 12% |
Details›
- Gross margin12 months to Q1 2026
- 34%
- Operating margin12 months to Q1 2026
- 11%
- Net margin12 months to Q1 2026
- 6.3%
- Free cash flow margin
- −14%
- Revenue, trailing twelve months
- $536M
- Free cash flow, trailing twelve months
- −$77M
- Net income, trailing twelve months
- $34M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.