SHLS (Shoals Technologies Group) Moat Score: 4/10 (As of Aug. 29, 2026)

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SHLS Shoals Technologies Group Inc SHLS
89 GF Score
Price $7.14
GF Value $9.97
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Shoals Technologies Group Moat Score?

Shoals Technologies Group SHLS -3.77% 89 Moat Score is 4 as of Aug. 29, 2026. GuruFocus rates SHLS with a GF Score™ of 89/100 and a GF Value™ of $9.97 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 997 Semiconductors companies, Shoals Technologies Group ranks better than 89.37% on this metric.

Shoals Technologies Group has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Shoals Technologies Group has Narrow Moat: Shoals Technologies Group has a discernible but modest moat due to its proprietary technology in solar energy solutions. However, the rapidly evolving industry and competition limit its ability to establish a stronger competitive position.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Shoals Technologies Group might have Narrow Moat - Discernible but modest moat.

Shoals Technologies Group  (NAS:SHLS) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Shoals Technologies Group Moat Score Related Terms

SHLS vs CSIQ, ARRY, RUN: Moat Score Comparison

For the Solar subindustry, Shoals Technologies Group's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shoals Technologies Group Moat Score vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Shoals Technologies Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Shoals Technologies Group's Moat Score falls into.


SHLS
89GF Score
Shoals Technologies Group Inc SHLS
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Shoals Technologies Group (SHLS) has a Moat Score of 4 as of Aug. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Shoals Technologies Group ranks #106 out of 997 companies in the Semiconductors industry, placing it in the top 10.6%.
Is Shoals Technologies Group's Moat Score too high?
Shoals Technologies Group's current Moat Score is 4. Based on the distribution chart, Shoals Technologies Group ranks #106 out of 997 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Shoals Technologies Group has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shoals Technologies Group's Moat Score compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #106 out of 997 companies for Moat Score. This places Shoals Technologies Group in the top 11% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Semiconductors company?
A good Moat Score depends on the Semiconductors industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Shoals Technologies Group's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shoals Technologies Group stock overvalued right now?
Based on GuruFocus' analysis, Shoals Technologies Group (SHLS) is currently considered Modestly Undervalued. The stock's GF Value™ is $9.97, compared to a current price of $7.14 — trading 28.4% below its estimated fair value. The current Moat Score is 4. Shoals Technologies Group's overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current Moat Score is 4 as of Aug. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Shoals Technologies Group (SHLS) Overvalued in 2026?

Based on GuruFocus' analysis, Shoals Technologies Group stock appears to be undervalued. The current stock price of $7.14 is trading 28.4% below its estimated GF Value™ of $9.97. GuruFocus considers Shoals Technologies Group to be Modestly Undervalued.

Key valuation signals for SHLS:

  • Moat Score: 4
  • GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
  • GF Score™: 89/100 with 6 warning signs

No single metric tells the full story. See the SHLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shoals Technologies Group Business Description

Address 1400 Shoals Way, Portland, TN, USA, 37148
Shoals Technologies Group is a provider of electrical balance of system solutions for solar energy projects, primarily in the United States. EBOS encompasses components that are necessary to carry electric current produced by solar panels to an inverter. The products are sold principally to engineering, procurement, and construction firms that build solar energy projects.
89GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$7.14
Price
$9.97
GF Value