Is Shoals Technologies Currently One of The Best Solar Investments?

Photo of author
Written By Elizabeth Monroe

Shoals Technologies (NASDAQ: SHLS) is currently regarded as one of the top investment opportunities in the solar energy sector, standing alongside leaders such as Enphase due to its exceptional performance in its field of expertise. 

Analysis of the market suggests that now presents an excellent chance to invest in Shoals for those looking at long-term growth, as the stock appears significantly undervalued.

Company Overview and Recent Developments

Shoals specializes in electrical balance of systems (EBOS) technologies crucial for connecting solar panels and other clean energy devices to the electrical grid, encompassing a broad array of clean energy infrastructure from solar to storage and EV charging solutions.

Credits: DepositPhotos

In a strategic move to enhance its manufacturing capabilities in the U.S., Shoals has committed $80 million towards expanding its operations to a larger facility in Portland, Tennessee, which is expected to generate 550 new jobs. 

This expansion is in response to the surging demand for solar EBOS products, with Shoals’ manufacturing capacity now at 35GW, with potential expansion to 42GW, ensuring demand fulfillment into late 2025.

Read More: Hello Group Inc.’s Long-Term Performance Show’s Potential: Will The Stock Rally Continue?

Market Analysis

The solar energy sector has experienced a notable valuation decline over the past year, primarily due to supply chain disruptions in 2022 that impacted utility-scale and smaller-scale solar projects. 

Despite these challenges and regulatory uncertainties, the long-term outlook for solar energy remains positive, bolstered by corporate commitments to renewable energy, legislative support like the Inflation Reduction Act, and a record high in corporate funding for the solar sector in 2023.

Q4 & FY 2023 Performance

Shoals reported a miss on both its normalized EPS and GAAP EPS estimates, alongside a revenue shortfall in Q4 fiscal 2023. These results reflect the broader challenges within the solar market. 

Despite these short-term hurdles, Shoals posted a significant year-on-year revenue growth of 38% in Q4, with a notable increase in its backlog and awarded orders.

For the fiscal year 2023, Shoals achieved a 50% revenue growth, driven by heightened domestic demand for its solar EBOS solutions. 

The company projects revenue between $480 million and $520 million for fiscal 2024, with adjusted net income expected to range between $90 million and $110 million, signaling a positive outlook despite current market challenges.

Also Read: Immuron Limited Faces Positive Interim Results for Travelan® in Preventing ETEC-Induced Diarrhea

Financial Analysis

Shoals demonstrates impressive revenue growth but faces challenges in profitability, with its net income margin showing potential for improvement but also instability. 

Compared to peers, Shoals boasts a strong equity-to-asset ratio, reflecting financial robustness. Notably, the company has been cautious with financing, ensuring minimal dilution of shareholder value and manageable debt levels.

Valuation and Investment Potential

Despite trading at a higher price-to-earnings ratio, Shoals presents a compelling case for undervaluation when considering future growth prospects. 

Utilizing a conservative EPS growth rate and a discounted cash flow analysis, Shoals appears to offer a significant margin of safety for investors willing to embrace the long-term growth trajectory of the solar energy market.

Risks and Considerations

Potential investors should be aware of the risks associated with negative EPS revisions and decelerating momentum, common across the solar sector. The investment in Shoals is considered a deep-value play, requiring patience and a long-term investment horizon.


The solar energy sector, including Shoals, faces immediate challenges but also offers significant long-term growth opportunities for investors with a patient, long-term view. 

Credits: DepositPhotos

While macroeconomic factors and political changes may introduce volatility, the global shift towards renewable energy suggests a bright future for companies like Shoals. 

Investors prepared to navigate through short-term uncertainties may find Shoals an attractive value investment in the burgeoning solar energy market.

Read Next: James River Group Initiates Lawsuit Against Fleming Intermediate Holdings


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.