Shoals Technologies Group Inc Ordinary Shares - Class A
SHLS: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$3.00 | Zbd | Pnzgdybxy |
Shoals Earnings: Cautious Commentary Overshadows Strong Results
We lower our fair value estimate for no-moat Shoals to $11 from $15 following third-quarter results. The driver of our lower valuation is a higher percentage of our long-term revenue from the company’s lower-margin components segment as growth slows in its higher-margin system solutions segment. We view shares as overvalued.