Shoals Technologies Intrinsic Value – Barclays Upgrades Price Objective for Shoals Technologies Group to $20.00, Rates Stock “Underweight”
August 11, 2023
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Barclays recently raised their target price for Shoals Technologies ($NASDAQ:SHLS) Group to $20.00 and issued an “underweight” rating in a report. This is an increase from the previous $19.00. Shoals Technologies Group is a financial technology company that specializes in digital banking products and services. Their product offerings include a range of payment gateway solutions, card processing, e-commerce, online banking, and mobile banking solutions. The company’s mission is to make it easier for consumers to manage their finances through technology. They offer a suite of products and services that range from digital banking to payment processing, allowing customers to easily manage their finances in one convenient place.
Shoals Technologies Group has earned recognition for its extensive customer service and innovative products. They have been praised for their ability to quickly and accurately process payments, as well as their commitment to customer satisfaction. They have also earned high marks from industry analysts for their ability to deliver cost-effective solutions and comprehensive customer support. With this recent endorsement from Barclays, Shoals Technologies Group continues to solidify its place as a leader in the financial technology space.
Market Price
On Monday, SHOALS stock opened at $22.9 and closed at $22.1, down by 3.6% from previous closing price of 22.9. This decrease in share price could be attributed to the downgrade by Barclays. In its report, Barclays commented that SHOALS is well positioned to capitalize on the growth of the renewable energy markets, however, it also noted that the stock has already seen a strong rally in the past few months and is currently trading at premium to its historical levels. The company’s reliance on single customers and limited geographic diversification makes it hard for Barclays to justify the current high stock price.
The downgrade by Barclays has sent a message to the investors that the current market value of SHOALS may be overinflated and they should exercise caution before buying the stock. It remains to be seen if the stock will be able to recover from this dip or if it will further decline with time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shoals Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 409.77 | 153.79 | 37.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shoals Technologies. More…
| Operations | Investing | Financing |
| 84.03 | -5.88 | -96.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shoals Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 818.82 | 289.42 | 3.12 |
Key Ratios Snapshot
Some of the financial key ratios for Shoals Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.3% | 35.0% | 50.1% |
| FCF Margin | ROE | ROA |
| 19.2% | 24.8% | 15.7% |
Analysis – Shoals Technologies Intrinsic Value
At GoodWhale, we’ve been closely analyzing the fundamentals of SHOALS TECHNOLOGIES. After running our proprietary Valuation Line, we’ve determined that the intrinsic value of SHOALS TECHNOLOGIES share is around $26.8. Currently, SHOALS TECHNOLOGIES stock is traded at $22.1, making it a fair price that’s undervalued by 17.6%. More…
Peers
In the renewable energy industry, there is stiff competition between Shoals Technologies Group Inc and its competitors: Acmepoint Energy Services Co, P2 Solar Inc, and Pekat Group Bhd. All four companies are striving to provide the most efficient and innovative products and services in the market.
– Acmepoint Energy Services Co ($TPEX:6692)
Acmepoint Energy Services Co is a publicly traded company that provides energy services to residential and commercial customers in the United States. The company has a market cap of 1.21B as of 2022 and a return on equity of 3.39%. The company’s primary business is providing electricity and natural gas service to customers in deregulated markets. Acmepoint Energy Services Co also offers a variety of energy-related products and services, including energy efficiency products, demand response programs, and renewable energy products.
– P2 Solar Inc ($OTCPK:PTOS)
P2 Solar Inc has a market cap of 1.01M as of 2022, a Return on Equity of 36.61%. P2 Solar is a provider of solar power solutions. The company’s products include solar panels, inverters, and batteries. P2 Solar also offers engineering, procurement, and construction services.
– Pekat Group Bhd ($KLSE:0233)
Pekat Group Bhd is a Malaysian conglomerate with interests in a wide range of industries, including construction, property development, and manufacturing. The company has a market capitalization of 322.48 million as of 2022 and a return on equity of 9.39%. Pekat Group is headquartered in Kuala Lumpur and listed on the Bursa Malaysia stock exchange.
Summary
Barclays recently released a report on Shoals Technologies Group, adjusting its price objective from $19.00 to $20.00 and giving the company an “underweight” rating. Despite this, the stock price dropped on the same day, suggesting investors were not convinced by the analysis. Going forward, potential investors should be aware of the risks involved in investing in Shoals Technologies Group, and consider other investment options as well. Careful research of the company’s financials and overall performance may provide further insight into whether the stock is a good investment opportunity.
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