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Shoals Technologies GroupSHLS -3.77%89 ROE % is 7.97% as of Jun. 2026, which is 1% above its 10-year median of 7.91. 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 1,009 Semiconductors companies, Shoals Technologies Group ranks worse than 52.33% on this metric.
Shoals Technologies Group (NAS:SHLS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's ROE % distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Shoals Technologies Group (SHLS) has a ROE % of 7.97% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shoals Technologies Group and its competitors. This is near median its historical median of 7.91. Over the past decade, Shoals Technologies Group's ROE % has ranged from 4.38 to 86.83. According to the industry distribution chart, Shoals Technologies Group ranks #528 out of 1009 companies in the Semiconductors industry, placing it in the top 52.3%.
Is Shoals Technologies Group's ROE % too high?
Shoals Technologies Group's current ROE % of 7.97% is near median its 10-year median of 7.91. Over the past 10 years, this metric has ranged from a low of 4.38 to a high of 86.83. The Semiconductors industry median ROE % is 6.13. Shoals Technologies Group's value of 7.97% is 30% above this industry median. Based on the distribution chart, Shoals Technologies Group ranks #528 out of 1009 companies in the Semiconductors industry, which is below 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 ROE % compare to CSIQ and ARRY?
According to the Semiconductors industry distribution chart, Shoals Technologies Group ranks #528 out of 1009 companies for ROE %. This places Shoals Technologies Group in the lower half of its industry. The industry median ROE % is 6.13. Shoals Technologies Group's value of 7.97% is 30% above this benchmark. Historically, Shoals Technologies Group's own ROE % has ranged from 4.38 to 86.83 over the past decade. While the company's 10-year median is 7.91 vs. the industry median of 6.13, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 6.13, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shoals Technologies Group's current ROE % of 7.97% is 30% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shoals Technologies Group and its competitors. For the Semiconductors industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoals Technologies Group's current ROE % is 7.97%, which is near median its own 10-year median of 7.91. 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 ROE % is 7.97%, which is near median its 10-year median of 7.91 and 30% above the Semiconductors industry median of 6.13. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Shoals Technologies Group (SHLS), the current ROE % is 7.97% 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:
ROE %: 7.97% (near median its 10-year median of 7.91)
GF Value™: $9.97 vs. price of $7.14 (28.4% below fair value)
Industry Position: 30% above the Semiconductors median (#528 of 1009)
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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