Forensic Analysis · Semiconductors · as of Sep 25, 2026
Shoals Technologies Group, Inc. (SHLS)
A forensic read on Shoals Technologies Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
6.3
Distress distance
Clean
Earnings quality
4
Forensic signals
40.2
P / E (ttm)
5.6%
ROE
$1.3B
Market cap
19.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Shoals Technologies Group, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 6.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by inventory days.
What the filings flag
86d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 77 to 86 FY2024→FY2025 (against cost of goods sold; inventory +61% vs +20% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
5.1%
FY2025
Return on invested capital.Return on invested capital is 5.1% in the latest fiscal year and slipping across FY2023–FY2025 from 8.4%. After-tax operating profit was $61M in FY2023 and $39M in FY2025, with operating income at 16.2% of revenue in FY2023, 12.8% in FY2024 and 11.9% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: short-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
+1.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +2% over the last 2 years to FY2025 (+1.2%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~2%.
stopped
FY2024→FY2025
Shareholder returns — halted.Capital returns have STOPPED — $25M of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash.
Key fundamentals
Latest Revenue$475.3M
Revenue Growth YoY+19.1%
Revenue CAGR (2yr)-1.4%
Net Margin7.1%
Free Cash Flow-$16.0M
Return on Equity5.6%
Debt / Equity0.23x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Shoals Technologies Group, Inc.'s actual 10-K/10-Q/8-K filings?