Latest Ratios: P/E Ratio 50.2x · EV/EBITDA 28.5x · ROE 5.8%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $1.4B | $933M | $2.6B | $4.1B | $2.7B | — | — | — |
| Enterprise Value | $1.9B | $1.6B | $1.1B | $2.7B | $4.4B | $3.0B | — | — | — |
| P/E Ratio → | 50.20 | 42.50 | 39.50 | 64.75 | 29.02 | 1157.14 | — | — | — |
| P/S Ratio | 3.54 | 3.01 | 2.34 | 5.23 | 12.65 | 12.77 | — | — | — |
| P/B Ratio | 2.82 | 2.39 | 1.68 | 4.69 | 13.74 | — | — | — | — |
| P/FCF | — | — | 12.96 | 31.41 | 113.92 | — | — | — | — |
| P/OCF | 98.70 | 83.86 | 11.61 | 27.80 | 104.81 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.36 | 2.63 | 5.55 | 13.35 | 13.91 | — | — | — |
| EV / EBITDA | 28.51 | 24.61 | 16.48 | 30.31 | 56.82 | 64.06 | — | — | — |
| EV / EBIT | 32.85 | 27.33 | 20.34 | 34.35 | 25.60 | 159.58 | — | — | — |
| EV / FCF | — | — | 14.60 | 33.36 | 120.27 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.0% | 35.0% | 35.6% | 34.4% | 40.2% | 38.8% | 37.9% | 30.6% | 27.1% |
| Operating Margin | 11.9% | 11.9% | 12.8% | 16.2% | 20.3% | 17.0% | 21.2% | 18.6% | 10.7% |
| Net Profit Margin | 7.1% | 7.1% | 6.0% | 8.2% | 39.0% | 1.1% | 19.2% | 17.4% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.8% | 5.8% | 4.4% | 9.5% | 87.0% | — | — | 17.4% | 6.3% |
| ROA | 4.0% | 4.0% | 2.9% | 5.6% | 25.0% | 0.8% | 17.6% | 13.5% | 4.7% |
| ROIC | 5.9% | 5.9% | 5.6% | 9.6% | 13.0% | 13.6% | 16.8% | 11.7% | — |
| ROCE | 7.6% | 7.6% | 7.0% | 12.2% | 14.2% | 12.8% | 22.3% | 16.0% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.25 | 0.33 | 0.79 | — | — | 0.17 | 0.29 |
| Debt / EBITDA | 2.70 | 2.70 | 2.22 | 2.03 | 3.11 | 5.34 | 7.69 | 0.72 | 1.97 |
| Net Debt / Equity | — | 0.28 | 0.21 | 0.29 | 0.77 | — | — | 0.13 | 0.28 |
| Net Debt / EBITDA | 2.59 | 2.59 | 1.85 | 1.77 | 3.00 | 5.23 | 7.47 | 0.53 | 1.96 |
| Debt / FCF | — | — | 1.64 | 1.95 | 6.34 | — | 6.86 | 0.55 | 24.69 |
| Interest Coverage | 5.85 | 5.85 | 3.74 | 3.28 | 9.20 | 1.28 | 10.62 | 15.07 | 4.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.03 | 2.03 | 2.33 | 2.45 | 2.92 | 2.96 | 2.33 | 1.90 | 3.29 |
| Quick Ratio | 1.32 | 1.32 | 1.64 | 1.88 | 1.53 | 1.75 | 1.70 | 1.54 | 2.41 |
| Cash Ratio | 0.06 | 0.06 | 0.29 | 0.25 | 0.17 | 0.16 | 0.42 | 0.29 | 0.01 |
| Asset Turnover | — | 0.53 | 0.50 | 0.58 | 0.55 | 0.50 | 0.90 | 0.77 | 0.56 |
| Inventory Turnover | 3.44 | 3.44 | 4.59 | 6.07 | 2.69 | 3.40 | 7.21 | 11.35 | 7.60 |
| Days Sales Outstanding | — | 115.89 | 90.53 | 109.93 | 75.12 | 77.09 | 64.05 | 75.27 | 91.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | 1113.7% | 55.6% | 123.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 2.4% | 2.5% | 1.5% | 3.4% | 0.1% | — | — | — |
| FCF Yield | — | — | 7.7% | 3.2% | 0.9% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 2.7% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 2.7% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $168M | $169M | $165M | $168M | $112M | $160M | $167M | $167M |
Liquidity and margin erosion
According to current market data, SHLS trades at a forward EV/EBITDA of 11.44, which appears disconnected from the company's recent operational volatility and suggests that investors are pricing in a recovery that may not materialize given the current 45.00 TTM P/E ratio and project-based revenue risks.
The valuation multiples imply a growth-oriented narrative that contrasts sharply with the recent contraction in margins and cash flow. Investors should monitor whether the forward multiple reflects realistic earnings expectations or if the stock remains vulnerable to further downward revisions as project delays persist.
Based on reported financial figures, the company's ROIC has trended downward from 3.4% in 2023Q4 to 0.7% in 2026Q1, indicating that recent capital investments in manufacturing capacity are failing to generate the expected returns and are instead diluting the overall efficiency of the business model.
The decline in ROIC suggests that the company is struggling to maintain its competitive advantage as it scales. This trend warrants further investigation into whether the increased capital intensity is a structural issue or a temporary byproduct of the current project-based revenue cycle.
As reported in recent quarterly filings, the cash conversion cycle has expanded significantly to 141 days in 2026Q1, driven by rising inventory levels and extended days sales outstanding, which suggests that the company is facing increasing difficulty in converting its project-based revenue into actual cash flow.
The lengthening CCC indicates that the company's working capital management is becoming a drag on liquidity. This inefficiency appears to be a structural challenge inherent in the utility-scale solar construction cycle, where project delays directly impact the company's ability to collect receivables and manage inventory turnover.
As indicated by the latest financial statements, the quick ratio has declined to 1.07 in 2026Q1, leaving the company with minimal cash reserves to navigate potential operational shocks or the costs associated with ongoing product quality remediation and patent litigation expenses in the current solar market.
The narrowing liquidity buffer suggests that the company has limited room for error in its operational execution. Investors should monitor the company's ability to manage its debt obligations and working capital requirements without resorting to dilutive financing or further increasing its leverage profile.
The most commonly misapplied metric for SHLS is the top-line revenue growth rate, which obscures the underlying volatility of project-based cash flows and the significant working capital drag that currently threatens the company's ability to sustain its operations without external capital support or further debt accumulation.
Analysts should prioritize free cash flow and the cash conversion cycle over revenue growth to better assess the company's true earning power. Focusing on revenue growth alone ignores the potential for margin compression and the high costs associated with maintaining the company's proprietary BLA system.
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Quick answers to the most common questions about buying SHLS stock.
Shoals Technologies Group, Inc.'s current P/E ratio is 50.2x. The historical average is 43.9x. This places it at the 75th percentile of its historical range.
Shoals Technologies Group, Inc.'s current EV/EBITDA is 28.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.5x.
Shoals Technologies Group, Inc.'s return on equity (ROE) is 5.8%. The historical average is 21.7%.
Based on historical data, Shoals Technologies Group, Inc. is trading at a P/E of 50.2x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Shoals Technologies Group, Inc. has 35.0% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Shoals Technologies Group, Inc.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.