Shoals Technologies Group, Inc. — Earnings Quality Grade F
SHLS · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 27 days (71 → 99)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 64.7% exceeds revenue growth 19.1%
Revenue grew 19.1% but CFFO declined -78.8%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory growth 60.6% exceeds COGS 20.1%
CapEx growth 293.7% is >2x revenue growth 19.1%
SG&A/Gross Profit = 61.0%. Normal
Gross margin 35.0%, change -0.5pp. Stable
Cash Flow Quality
CFFO/NI = 0.51. Below 1.0
FCF is negative ($-0.0B)
Accruals ratio = 1.8%. Low accruals
Cash $0.0B covers only 4% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 17% of equity. Manageable
Debt/EBITDA = 2.4x. Healthy
Other assets -43.4% vs revenue 19.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -1.79 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25