Sunrun Inc. (RUN) vs Shoals Technologies Group, Inc. (SHLS)

Sunrun Inc. and Shoals Technologies Group, Inc. are both Solar companies. Sunrun Inc. is the larger, with a market value of $1.9B against $1.3B — 1.5× the size. Sunrun Inc. trades at the lower P/E: 4.7× against 39.7×. Sunrun Inc. grew revenue faster over the last twelve months: 63.2% against 46.9%. Sunrun Inc. has the higher net margin (11.6% vs 5.41%) and the lower return on invested capital (0.31% vs 4.89%). Across the 21 metrics below, Sunrun Inc. leads on 11 and Shoals Technologies Group, Inc. on 10.

Valuation

Metric RUN SHLS Solar median
P/E 4.74 39.69 10.93
P/S 0.56 2.13 0.54
P/B 0.44 2.03 1.44
Price to free cash flow n/m n/m 9.91
EV/EBITDA 19.02 18.19 9.90
EV/Sales 4.60 2.45 0.74
Earnings yield 21.09% 2.52% 0.00%
Free cash flow yield (114.08%) (4.11%) 0.00%

Profitability

Metric RUN SHLS Solar median
Gross margin 35.29% 31.92% 31.92%
Operating margin 2.66% 10.63% (9.70%)
Net margin 11.59% 5.41% (8.48%)
Free cash flow margin (63.62%) (8.77%) (2.95%)
Return on equity 9.92% 5.34% 5.34%
Return on assets 1.81% 3.51% (5.36%)
Return on invested capital 0.31% 4.89% (5.27%)

Growth

Metric RUN SHLS Solar median
Revenue growth (TTM) 63.23% 46.88% 16.97%
EPS growth (last fiscal year) 113.35% 42.86% —
Revenue growth, 5-year CAGR 26.24% 22.05% 14.00%
Net income growth, 5-year CAGR 0.00% (0.11%) 0.00%

Health

Metric RUN SHLS Solar median
Debt to equity 3.46 0.32 0.09
Current ratio 1.42 2.25 1.33
Net debt to EBITDA 22.50 1.83 0.03

Dividend

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

Size

Metric RUN SHLS Solar median
Market cap 1.90b 1.25b 43.46m

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