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Shoals Technologies GroupSHLS -3.77%89 ROA % is 4.74% as of Jun. 2026, which is 7% below its 10-year median of 5.11. 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 1,034 Semiconductors companies, Shoals Technologies Group ranks better than 50.1% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shoals Technologies Group's annualizedNet Income for the quarter that ended in Jun. 2026 was $48.6 Mil.
Shoals Technologies Group's average Total Assets over the quarter that ended in Jun. 2026 was $1,023.9 Mil. Therefore, Shoals Technologies Group's annualized ROA % for the quarter that ended in Jun. 2026 was 4.74%.
The historical rank and industry rank for Shoals Technologies Group's ROA % or its related term are showing as below:
SHLS'
s ROA % Range Over the Past 10 Years
Min: 0.76 Med: 5.11 Max: 24.99
Current: 3.46
During the past 8 years, Shoals Technologies Group's highest ROA % was 24.99%. The lowest was 0.76%. And the median was 5.11%.
SHLS's ROA % is ranked better than 50.1% of 1034
companies
in the Semiconductors industry
Industry Median: 3.44
vs SHLS: 3.46
Shoals Technologies Group (NAS:SHLS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Solar subindustry, Shoals Technologies Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's ROA % distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Shoals Technologies Group (SHLS) has a ROA % of 4.74% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shoals Technologies Group and its competitors. This is near median its historical median of 5.11. Over the past decade, Shoals Technologies Group's ROA % has ranged from 0.76 to 24.99. According to the industry distribution chart, Shoals Technologies Group ranks #516 out of 1034 companies in the Semiconductors industry, placing it in the top 49.9%.
Is Shoals Technologies Group's ROA % too high?
Shoals Technologies Group's current ROA % of 4.74% is near median its 10-year median of 5.11. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 24.99. The Semiconductors industry median ROA % is 3.44. Shoals Technologies Group's value of 4.74% is 37.8% above this industry median. Based on the distribution chart, Shoals Technologies Group ranks #516 out of 1034 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 ROA % compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #516 out of 1034 companies for ROA %. This puts Shoals Technologies Group in the upper half of its industry. The industry median ROA % is 3.44. Shoals Technologies Group's value of 4.74% is 37.8% above this benchmark. Historically, Shoals Technologies Group's own ROA % has ranged from 0.76 to 24.99 over the past decade. While the company's 10-year median is 5.11 vs. the industry median of 3.44, 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 ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 3.44, based on 1,034 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shoals Technologies Group's current ROA % of 4.74% is 37.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shoals Technologies Group and its competitors. For the Semiconductors industry, the median ROA % is 3.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoals Technologies Group's current ROA % is 4.74%, which is near median its own 10-year median of 5.11. 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 ROA % is 4.74%, which is near median its 10-year median of 5.11 and 37.8% above the Semiconductors industry median of 3.44. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current ROA % is 4.74% 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:
ROA %: 4.74% (near median its 10-year median of 5.11)
GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
Industry Position: 37.8% above the Semiconductors median (#516 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
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