TakeoverPE & activists

SHLSShoals Technologies Group, Inc.

Semiconductors & Related Devices · $1.2B market cap

1.6×

More likely than average to be taken private

Top 22% of the Russell 3000 for a buyout by a private-equity firm, holdco or insiders. How it works

Other things in the 10-K that mattered in past deals

Not part of the score. How often companies whose 10-K read the same way went on to a take-private, against the average company (the tick).

  • Little recurring revenueAway from one
    0.4× as often
    Of 2,226 companies scoring low on "recurring revenue", a take-private came 0.4× as often as average

Takeover signals

What an activist or buyer would see: cheap, overpaid, diluted or under pressure.

3of 15 firedHow well they predict deals →
12 other checks
  • TSR below peersNo
    —
    3+ of last 5 years
  • High CEO pay despite TSRNo
    —
    Median CEO pay ≥ $15M while TSR trails
  • Dilutive SBCNo
    2% of revenue
    Over 10% of revenue
  • Payouts exceed cash flowNo
    0% of cash flow
    Buybacks + dividends over cash flow
  • Goodwill-heavyNo
    7% of assets
    Over 40% of assets
  • Low revenue per employeeNo
    —
    Bottom quartile of its SIC industry
  • Quiet on AINo
    1.2 per 10K words · 38th pct
    Bottom quartile of AI mentions in 10-Ks
  • Net cashNo
    1.8× EBITDA net debt
    More cash than debt, positive EBITDA
  • Recurring revenueNo
    0.8 of 10
    10-K business scored 7+ of 10 for recurring revenue
  • AI-rollup shapedNo
    0.2 of 10
    10-K business scored 5+ of 10 as an AI-rollup target
  • Active 13DNo
    0 filings
    Active-intent 13D in 18 months
  • Net insider sellingNo
    −$618K net
    Net sales over $10M in 12 months

Deal filings

FiledFormAcquirerPricePremium
Nov 4, 20268-KArray Technologies, Inc.——

Key numbers

Revenue
$475MFY2021: $213MFY2022: $327MFY2023: $489MFY2024: $399MFY2025: $475M
19% YoY
Operating margin
11.9%FY2021: 17.0%FY2022: 20.3%FY2023: 16.2%FY2024: 12.8%FY2025: 11.9%
7.5% YoY
EBITDA
$70MFY2021: $46MFY2022: $77MFY2023: $90MFY2024: $64MFY2025: $70M
10% YoY
Net debt / EBITDA
1.8×
$126M net debt

Financials

MetricFY2021FY2022FY2023FY2024FY2025YoYTrend
Revenue$213M$327M$489M$399M$475M 19% FY2021: $213MFY2022: $327MFY2023: $489MFY2024: $399MFY2025: $475M
Operating income$36M$66M$79M$51M$56M 10% FY2021: $36MFY2022: $66MFY2023: $79MFY2024: $51MFY2025: $56M
Net income$2M$128M$40M$24M$34M 39% FY2021: $2MFY2022: $128MFY2023: $40MFY2024: $24MFY2025: $34M
Operating cash flow−$4M$39M$92M$80M$17M 79% FY2021: −$4MFY2022: $39MFY2023: $92MFY2024: $80MFY2025: $17M
Capex$4M$3M$11M$8M$33M 294% FY2021: $4MFY2022: $3MFY2023: $11MFY2024: $8MFY2025: $33M
Stock-based comp$11M$16M$21M$14M$10M 30% FY2021: $11MFY2022: $16MFY2023: $21MFY2024: $14MFY2025: $10M
Buybacks—$0$0$25M$0 100% FY2022: $0FY2023: $0FY2024: $25MFY2025: $0

13D filers

FiledFilerFormStakeIntent
Mar 10, 2023Solon DeanSC 13D/A2.2%Passive
Dec 9, 2022Solon DeanSC 13D/A20.8%Passive
Jul 27, 2021Solon DeanSC 13D/A35.0%Passive
Jul 21, 2021Oaktree Power Opportunities Fund IV (Delaware) Holdings, L.P.SC 13D/A0.0%Passive
Jul 21, 2021Solon DeanSC 13D/A34.9%Passive
Feb 5, 2021Oaktree Power Opportunities Fund IV (Delaware) Holdings, L.P.SC 13D40.9%Passive
Feb 5, 2021Solon DeanSC 13D40.9%Passive

Insider trading

−$618Knet selling by insiders, open market, last 12 months
Bought $0 · 0 tradesSold $618K · 4 trades

Pay vs performance

No pay-versus-performance disclosure yet.