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Shoals Technologies GroupSHLS -3.77%85 Return-on-Tangible-Equity is 9.54% as of Jun. 2026, which is 93% below its 10-year median of 133.08. GuruFocus rates SHLS with a GF Scoreâ„¢ of 85/100 and a GF Valueâ„¢ of $9.97 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 992 Semiconductors companies, Shoals Technologies Group ranks worse than 51.41% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Shoals Technologies Group's annualized net income for the quarter that ended in Jun. 2026 was $48.6 Mil. Shoals Technologies Group's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $508.8 Mil. Therefore, Shoals Technologies Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 9.54%.
The historical rank and industry rank for Shoals Technologies Group's Return-on-Tangible-Equity or its related term are showing as below:
SHLS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.53 Med: 133.08 Max: 5842.57
Current: 6.45
During the past 8 years, Shoals Technologies Group's highest Return-on-Tangible-Equity was 5,842.57%. The lowest was 5.53%. And the median was 133.08%.
SHLS's Return-on-Tangible-Equity is ranked worse than 51.41% of 992
companies
in the Semiconductors industry
Industry Median: 6.735
vs SHLS: 6.45
Shoals Technologies Group (NAS:SHLS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Shoals Technologies Group Return-on-Tangible-Equity Related Terms
Shoals Technologies Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Shoals Technologies Group's Return-on-Tangible-Equity 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-Equity Chart
SHLS vs CSIQ, ARRY, RUN: Return-on-Tangible-Equity Comparison
For the Solar subindustry, Shoals Technologies Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.54% mean?
Shoals Technologies Group (SHLS) has a Return-on-Tangible-Equity of 9.54% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Shoals Technologies Group and its competitors. This is 93% below median its historical median of 133.08. Over the past decade, Shoals Technologies Group's Return-on-Tangible-Equity has ranged from 5.53 to 5,842.57. According to the industry distribution chart, Shoals Technologies Group ranks #510 out of 992 companies in the Semiconductors industry, placing it in the top 51.4%.
Is Shoals Technologies Group's Return-on-Tangible-Equity too high?
Shoals Technologies Group's current Return-on-Tangible-Equity of 9.54% is 93% below median its 10-year median of 133.08. Over the past 10 years, this metric has ranged from a low of 5.53 to a high of 5,842.57. The Semiconductors industry median Return-on-Tangible-Equity is 6.74. Shoals Technologies Group's value of 9.54% is 41.6% above this industry median. Based on the distribution chart, Shoals Technologies Group ranks #510 out of 992 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Shoals Technologies Group has a GF Scoreâ„¢ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shoals Technologies Group's Return-on-Tangible-Equity compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #510 out of 992 companies for Return-on-Tangible-Equity. This places Shoals Technologies Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Shoals Technologies Group's value of 9.54% is 41.6% above this benchmark. Historically, Shoals Technologies Group's own Return-on-Tangible-Equity has ranged from 5.53 to 5,842.57 over the past decade. While the company's 10-year median is 133.08 vs. the industry median of 6.74, 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-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 6.74, based on 992 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 9.54% is 41.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Shoals Technologies Group and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 6.74 — 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-Equity is 9.54%, which is 93% below median its own 10-year median of 133.08. 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-Equity is 9.54%, which is 93% below median its 10-year median of 133.08 and 41.6% above the Semiconductors industry median of 6.74. Shoals Technologies Group's overall GF Score™ is 85/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current Return-on-Tangible-Equity is 9.54% 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-Equity: 9.54% (93% below median its 10-year median of 133.08)
GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
Industry Position: 41.6% above the Semiconductors median (#510 of 992)
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.
85GF Score
Get the complete analysis for SHLS
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