Nextpower Inc. (NXT) vs Shoals Technologies Group, Inc. (SHLS)

Nextpower Inc. and Shoals Technologies Group, Inc. are both Solar companies. Nextpower Inc. is the larger, with a market value of $12.2B against $1.3B — 9.8× the size. Nextpower Inc. trades at the lower P/E: 20.3× against 39.7×. Shoals Technologies Group, Inc. grew revenue faster over the last twelve months: 46.9% against 17.0%. Nextpower Inc. has the higher net margin (16.4% vs 5.41%) and the higher return on invested capital (32.7% vs 4.89%). Across the 21 metrics below, Nextpower Inc. leads on 16 and Shoals Technologies Group, Inc. on 5.

Valuation

Metric NXT SHLS Solar median
P/E 20.31 39.69 10.93
P/S 3.36 2.13 0.54
P/B 4.77 2.03 1.44
Price to free cash flow 22.22 n/m 9.91
EV/EBITDA 15.10 18.19 9.90
EV/Sales 3.06 2.45 0.74
Earnings yield 4.92% 2.52% 0.00%
Free cash flow yield 4.50% (4.11%) 0.00%

Profitability

Metric NXT SHLS Solar median
Gross margin 33.45% 31.92% 31.92%
Operating margin 19.34% 10.63% (9.70%)
Net margin 16.36% 5.41% (8.48%)
Free cash flow margin 15.12% (8.77%) (2.95%)
Return on equity 27.22% 5.34% 5.34%
Return on assets 15.53% 3.51% (5.36%)
Return on invested capital 32.66% 4.89% (5.27%)

Growth

Metric NXT SHLS Solar median
Revenue growth (TTM) 16.97% 46.88% 16.97%
EPS growth (last fiscal year) 10.66% 42.86% —
Revenue growth, 5-year CAGR 24.38% 22.05% 14.00%
Net income growth, 5-year CAGR 36.42% (0.11%) 0.00%

Health

Metric NXT SHLS Solar median
Debt to equity 0.00 0.32 0.09
Current ratio 2.69 2.25 1.33
Net debt to EBITDA (1.50) 1.83 0.03

Dividend

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

Size

Metric NXT SHLS Solar median
Market cap 12.19b 1.25b 43.46m

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