Array Technologies, Inc. (ARRY) vs Shoals Technologies Group, Inc. (SHLS)

Array Technologies, Inc. and Shoals Technologies Group, Inc. are both Solar companies. Shoals Technologies Group, Inc. is the larger, with a market value of $1.3B against $613.0M — 2.0× the size. Array Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Shoals Technologies Group, Inc. trades at 39.7×. Shoals Technologies Group, Inc. grew revenue faster over the last twelve months: 46.9% against 1.18%. Shoals Technologies Group, Inc. has the higher net margin (5.41% vs −12.5%) and the higher return on invested capital (4.89% vs −25.6%). Across the 19 metrics below, Shoals Technologies Group, Inc. leads on 10 and Array Technologies, Inc. on 9.

Valuation

Metric ARRY SHLS Solar median
P/E n/m 39.69 10.93
P/S 0.52 2.13 0.54
P/B n/m 2.03 1.44
Price to free cash flow 4.60 n/m 9.91
EV/EBITDA 9.40 18.19 9.90
EV/Sales 0.83 2.45 0.74
Earnings yield (24.32%) 2.52% 0.00%
Free cash flow yield 21.73% (4.11%) 0.00%

Profitability

Metric ARRY SHLS Solar median
Gross margin 24.27% 31.92% 31.92%
Operating margin (5.13%) 10.63% (9.70%)
Net margin (12.48%) 5.41% (8.48%)
Free cash flow margin 11.37% (8.77%) (2.95%)
Return on equity 108.38% 5.34% 5.34%
Return on assets (9.62%) 3.51% (5.36%)
Return on invested capital (25.60%) 4.89% (5.27%)

Growth

Metric ARRY SHLS Solar median
Revenue growth (TTM) 1.18% 46.88% 16.97%
EPS growth (last fiscal year) 62.56% 42.86% —
Revenue growth, 5-year CAGR 8.03% 22.05% 14.00%
Net income growth, 5-year CAGR 0.00% (0.11%) 0.00%

Health

Metric ARRY SHLS Solar median
Debt to equity (3.25) 0.32 0.09
Current ratio 2.20 2.25 1.33
Net debt to EBITDA 3.36 1.83 0.03

Dividend

Metric ARRY SHLS Solar median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric ARRY SHLS Solar median
Market cap 612.95m 1.25b 43.46m

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