Utility Solar Discussion (ARRY, FSLR, SHLS)

Shoals Technologies Group Inc - Ordinary Shares - Class A

Industrial/Transportation, Energy, Utilities


Presented:11/14/2023
Price:$15.07
Cap:$2.56B
Current Price:$5.12
Cap:$0.85B

Presented

Date11/14/2023
Price$15.07
Market Cap$2.56B
Ent Value$3.28B
P/E Ratio18.42x
Book Value$3.09
Div Yield0%
Shares O/S169.94M
Ave Daily Vol3,293,125
Short Int13.27%

Current

Price$5.12
Market Cap$0.85B
Shoals Technologies Group, Inc. provides electrical balance of system solutions for solar energy projects. Its EBOS components include cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures and splice boxes. The company was founded by Dean Solon in November 1996 and is headquartered in Portland, TN.

Publicly traded companies mentioned herein: Array Technologies Inc (ARRY), First Solar Inc (FSLR), NEXTracker Inc (NXT), Primoris Services Corp (PRIM), Shoals Technologies Group Inc (SHLS), TE Connectivity Ltd (TEL)

Highlights

The group discussed the outlook for the utility solar industry, with one investor opening the dialogue with the belief that risk to 2024 growth may be masked by idiosyncratic dynamics and the positive longer-term setup, likely positioning the industry to underperform lofty sell-side expectations over the coming 12 months. While reported bookings have been strong, she argues this is more representative of past demand than future projects. Even if demand remains strong, her diligence suggests there are other challenges that could limit growth in 2024, including interconnection delays and a lack of skilled labor. Meanwhile, the Street seems to overlook these wider-scale issues and treat each company’s idiosyncratic headwinds as natural stepping stones (demand cycles, production limits, capacity constraints, etc.) rather than a collective signal that utility scale will slow in 2024.

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Idea Discussion

Commentor 1 - 2 weeks ago

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