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Shoals Technologies GroupSHLS -3.77%89 Return-on-Tangible-Asset is 5.26% as of Jun. 2026, which is 58% below its 10-year median of 12.47. GuruFocus rates SHLS with a GF Scoreâ„¢ of 89/100 and a GF Valueâ„¢ of $9.97 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,034 Semiconductors companies, Shoals Technologies Group ranks better than 51.16% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Shoals Technologies Group's annualizedNet Income for the quarter that ended in Jun. 2026 was $48.6 Mil. Shoals Technologies Group's average total tangible assets for the quarter that ended in Jun. 2026 was $923.3 Mil. Therefore, Shoals Technologies Group's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 5.26%.
The historical rank and industry rank for Shoals Technologies Group's Return-on-Tangible-Asset or its related term are showing as below:
SHLS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.29 Med: 12.47 Max: 51.71
Current: 3.9
During the past 8 years, Shoals Technologies Group's highest Return-on-Tangible-Asset was 51.71%. The lowest was 1.29%. And the median was 12.47%.
SHLS's Return-on-Tangible-Asset is ranked better than 51.16% of 1034
companies
in the Semiconductors industry
Industry Median: 3.64
vs SHLS: 3.90
Shoals Technologies Group (NAS:SHLS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companyÂ’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companyÂ’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Shoals Technologies Group Return-on-Tangible-Asset Related Terms
Shoals Technologies Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Shoals Technologies Group's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
SHLS vs CSIQ, ARRY, RUN: Return-on-Tangible-Asset Comparison
For the Solar subindustry, Shoals Technologies Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.26% mean?
Shoals Technologies Group (SHLS) has a Return-on-Tangible-Asset of 5.26% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shoals Technologies Group and its competitors. This is 58% below median its historical median of 12.47. Over the past decade, Shoals Technologies Group's Return-on-Tangible-Asset has ranged from 1.29 to 51.71. According to the industry distribution chart, Shoals Technologies Group ranks #505 out of 1034 companies in the Semiconductors industry, placing it in the top 48.8%.
Is Shoals Technologies Group's Return-on-Tangible-Asset too high?
Shoals Technologies Group's current Return-on-Tangible-Asset of 5.26% is 58% below median its 10-year median of 12.47. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 51.71. The Semiconductors industry median Return-on-Tangible-Asset is 3.64. Shoals Technologies Group's value of 5.26% is 44.5% above this industry median. Based on the distribution chart, Shoals Technologies Group ranks #505 out of 1034 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Shoals Technologies Group has a GF Scoreâ„¢ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shoals Technologies Group's Return-on-Tangible-Asset compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #505 out of 1034 companies for Return-on-Tangible-Asset. This puts Shoals Technologies Group in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.64. Shoals Technologies Group's value of 5.26% is 44.5% above this benchmark. Historically, Shoals Technologies Group's own Return-on-Tangible-Asset has ranged from 1.29 to 51.71 over the past decade. While the company's 10-year median is 12.47 vs. the industry median of 3.64, 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 Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 3.64, based on 1,034 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shoals Technologies Group's current Return-on-Tangible-Asset of 5.26% is 44.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shoals Technologies Group and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoals Technologies Group's current Return-on-Tangible-Asset is 5.26%, which is 58% below median its own 10-year median of 12.47. 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 Return-on-Tangible-Asset is 5.26%, which is 58% below median its 10-year median of 12.47 and 44.5% above the Semiconductors industry median of 3.64. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current Return-on-Tangible-Asset is 5.26% 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:
Return-on-Tangible-Asset: 5.26% (58% below median its 10-year median of 12.47)
GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
Industry Position: 44.5% above the Semiconductors median (#505 of 1034)
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
Get the complete analysis for SHLS
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