Shoals Technologies Group, Inc. cash flow to debt ratio of 9.73% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Shoals Technologies Group, Inc.'s free cash flow has decreased 122.19% from $72.00M last year to $-15.98M, signaling decreasing performance

Shoals Technologies Group, Inc.'s debt to equity ratio is 0.38, which means that the company's assets are healthy financed, signaling financial stability.

Shoals Technologies Group, Inc.'s debt has increased relative to shareholder equity from 0.25 last year to 0.38 today, signaling weakened financials

Shoals Technologies Group, Inc. has a net debt to EBITDA ratio of 2.50x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Shoals Technologies Group, Inc.'s interest coverage ratio of 5.35 indicates that earnings with good margin can cover interest payments on company debt

Shoals Technologies Group, Inc.'s profit margin has decreased (10.41%) in the last year from 6.04% to 5.41%, signaling decreasing performance

Shoals Technologies Group, Inc.'s short-term assets of $257.89M exceed its short-term liabilities of $127.32M

Shoals Technologies Group, Inc.'s return on assets of 3.13% is lower than the 5.00% threshold, indicating inefficient asset utilization

Shoals Technologies Group, Inc.'s return on equity of 5.29%, is lower than 15.00%, indicating bad performance

Shoals Technologies Group, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Shoals Technologies Group, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Shoals Technologies Group, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Shoals Technologies Group, Inc. has negative free cash flow, indicating cash burn

Shoals Technologies Group, Inc.'s yearly earnings has increased 39.16% since last year from $24.13M to $33.57M, signaling increasing performance

Shoals Technologies Group, Inc.'s yearly revenue has increased 19.07% since last year from $399.21M to $475.33M, signaling increasing performance

ROIC 5.23% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Shoals Technologies Group, Inc.'s 3-year revenue CAGR of 13.29% is positive, indicating growing revenue over the past 3 years

Shoals Technologies Group, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Shoals Technologies Group, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Shoals Technologies Group, Inc. has insufficient data to evaluate this check.

Shoals Technologies Group, Inc. has an earnings yield of 2.21%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Shoals Technologies Group, Inc. is overvalued relative to its fair value price of 1.80 based on EBITDA multiple model

Shoals Technologies Group, Inc. has an EV/EBITDA ratio of 23.90x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Shoals Technologies Group, Inc. has insufficient data to evaluate this check.

Shoals Technologies Group, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Shoals Technologies Group, Inc. has a price-to-book ratio of 2.33x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Shoals Technologies Group, Inc. has a price-to-sales ratio of 2.45x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue