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Shoals Technologies GroupSHLS -3.77%89 Pretax Margin % is 9.49% as of Jun. 2026, which is 12% below its 10-year median of 10.73. 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 1,026 Semiconductors companies, Shoals Technologies Group ranks better than 51.27% on this metric.
Shoals Technologies Group (NAS:SHLS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Shoals Technologies Group Pretax Margin % Related Terms
Shoals Technologies Group Pretax Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SHLS vs CSIQ, ARRY, RUN: Pretax Margin % Comparison
For the Solar subindustry, Shoals Technologies Group's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shoals Technologies Group (SHLS) has a Pretax Margin % of 9.49% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Shoals Technologies Group and its competitors. This is 12% below median its historical median of 10.73. Over the past decade, Shoals Technologies Group's Pretax Margin % has ranged from 1.89 to 46.49. According to the industry distribution chart, Shoals Technologies Group ranks #500 out of 1026 companies in the Semiconductors industry, placing it in the top 48.7%.
Is Shoals Technologies Group's Pretax Margin % too high?
Shoals Technologies Group's current Pretax Margin % of 9.49% is 12% below median its 10-year median of 10.73. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 46.49. The Semiconductors industry median Pretax Margin % is 6.97. Shoals Technologies Group's value of 9.49% is 36.2% above this industry median. Based on the distribution chart, Shoals Technologies Group ranks #500 out of 1026 companies in the Semiconductors industry, which is above the industry midpoint. 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 Pretax Margin % compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #500 out of 1026 companies for Pretax Margin %. This puts Shoals Technologies Group in the upper half of its industry. The industry median Pretax Margin % is 6.97. Shoals Technologies Group's value of 9.49% is 36.2% above this benchmark. Historically, Shoals Technologies Group's own Pretax Margin % has ranged from 1.89 to 46.49 over the past decade. While the company's 10-year median is 10.73 vs. the industry median of 6.97, Shoals Technologies Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 6.97, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shoals Technologies Group's current Pretax Margin % of 9.49% is 36.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Shoals Technologies Group and its competitors. For the Semiconductors industry, the median Pretax Margin % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoals Technologies Group's current Pretax Margin % is 9.49%, which is 12% below median its own 10-year median of 10.73. 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 Pretax Margin % is 9.49%, which is 12% below median its 10-year median of 10.73 and 36.2% above the Semiconductors industry median of 6.97. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current Pretax Margin % is 9.49% as of Jun. 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:
Pretax Margin %: 9.49% (12% below median its 10-year median of 10.73)
GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
Industry Position: 36.2% above the Semiconductors median (#500 of 1026)
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 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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