Does Shoals Technologies Group, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Shoals Technologies Group, Inc. (SHLS) 42.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 55, returns on capital 50, balance-sheet safety 37, capital discipline 19.

Is SHLS stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $3.59 per share versus a recent price of $10.30 — 187% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has SHLS's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 42.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Shoals Technologies Group, Inc.

SHLS · Technology · $1.7B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power55

Median gross margin 35.6% over 7y, stable.

Returns on capital50

Median ROIC 12.0%, above the 9% hurdle in 57% of years.

Balance-sheet safety37

Net debt/EBITDA n/ax, interest coverage 6x.

Capital discipline19

Owner earnings +0.5%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

187% above value

Owner earnings (normalized): $33.6M
Est. intrinsic value / share: $3.59
Recent price: $10.30
Discount to value: 187% above value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

8 years of fundamentals

The business, in plain English

Shoals Technologies Group, Inc. booked $475.3M of revenue in FY2025 in the Technology sector and kept 35.0% of it as gross profit — a solid-margin business by that measure. After every other cost, 7.1% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $144.5M (FY2019) to $475.3M (FY2025) — about 22.0% a year compounded over 6 years.

It earned 6.6% on invested capital in FY2025, with a median of 12.0% across 7 filed years. The Returns on Capital filter above scores it 50/100.

The balance sheet carried $141.8M of total debt in FY2024. Balance-Sheet Safety scores it 37/100.

Put together: Pricing Power is the strongest of the four filters (55/100) and Capital Discipline the weakest (19/100), which is how SHLS lands at 43/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$475.3M FY2025

Gross marginRevenue kept after cost of goods35.0% FY2025

Return on invested capitalOperating profit on the capital employed6.6% FY2025

Owner earningsCash an owner could take out$33.6M FY2025

Gaps in a line mean that item isn’t in SHLS’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale42.9 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — SHLS has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#282 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#280QXL QUANTUM X LABS INC.42.9 out of 100, Shallow moatShallow moat
#281SDCH SideChannel, Inc.42.9 out of 100, Shallow moatShallow moat
#283IPDN Professional Diversity Network, Inc.42.8 out of 100, Shallow moatShallow moat
#284AMN AMN HEALTHCARE SERVICES, INC.42.7 out of 100, Shallow moatShallow moat

Compare SHLS with its nearest peers →All Technology companies on the Index →

Common questions about SHLS

Does Shoals Technologies Group, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Shoals Technologies Group, Inc. (SHLS) 42.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 55, returns on capital 50, balance-sheet safety 37, capital discipline 19.
Is SHLS stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $3.59 per share versus a recent price of $10.30 — 187% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has SHLS's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 42.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell SHLS. See the disclaimer.