BSO-Specialist Shoals Technologies enters PPVX
Post date: 06/02/2021 - 19:19
In the fifth calendar week, the PHOTON Photovoltaic Stock Index PPVX, which lists the 30 listed PV companies with the highest market capitalization worldwide, already records the third new entry of the year 2021, namely the US-based Shoals Technologies Group Inc.
The company, based in Portland, Tennessee, was founded in 1996 and initially focused on supplying the automotive industry. Today, Shoals is a supplier of Electrical Balance of Systems (EBOS) for solar power plants. This includes the manufacture of corresponding components as well as engineering services. The company has made a name for itself in particular with solutions for the wiring of large solar power plants. In the field of tracking systems, Shoals cooperates with Array Technologies Inc. which is also represented in the PPVX. In addition, EBOS solutions for battery storage and electric car charging infrastructure are also part of the portfolio.
With about 690 employees (as of the end of December 2020), revenue for the first three quarters of 2020 was $136.8 million, compared with $144.5 million for the full year 2019 and about $103.7 million in 2018. Net income increased from $8.5 million in 2018 to $25.1 million in 2019, with $29.5 million already recorded for January through September 2020.
Investment firm Oaktree Capital Management L.P. has held a majority stake in Shoals Technologies since 2017. At the initial listing on the New York Stock Exchange (Nasdaq), which took place on Jan. 29, 77 million of the total 88.55 million shares placed were offered by Oaktree (or by funds managed by Oaktree, which in turn control a parent company of Shoals). Money flowed into Shoals’ coffers for only 11.55 million new shares. The total volume had been significantly increased from the Jan. 19 offering of 50 million shares filed with the U.S. Securities and Exchange Commission (SEC) by using appropriate options, and the initial planned issue price of the shares at $19 to $21 was eventually set at $25. At the end of the first day of trading, the price was just under $31, and at the cut-off date for inclusion in the PPVX (February 5) it was $39.95. This gives Shoals Technologies a market capitalization of $6.66 billion and ranks it ninth among the PPVX companies.
For the newcomer, Thai solar power plant operator SPCG Public Co. Ltd. left the PPVX since it had the lowest market value in the PPVX at the equivalent of $634 million.
The solar stock index rose 8.6 percent last week to 5,096 points. Its reference value NYSE Arca Oil gained 8.2 percent. Up 25.3 percent year-to-date, the PPVX is 12.7 percentage points ahead of the oil stock index (up 12.5 percent). In a long-term comparison since the beginning of 2003, the PPVX (up 1,711.6 percent) has a lead of 1,641 percentage points over the oil stocks (up 70.7 percent). The cumulative market value of all PPVX companies is currently around €144.1 billion ($172.8 billion).
The top 3 stocks since the beginning of the year are GCL-Poly with a gain of 159.3 percent, Daqo New Energy (90.4 percent) and SunPower (69.8 percent), while the highest price losses from Jan. 1 have been suffered by Renesola (29.3 percent since joining the PPVX on Jan. 22), Beijing Energy International (19.4 percent) and Solarpack (16.7 percent). The highest price gains of the past week are posted by GCL-Poly (32.9 percent), Daqo New Energy (24.0 percent) and Grenergy (21.2 percent), while the highest account for Sunpower (19.4 percent), Scatec (4.0 percent) and West Holdings (3.2 percent).
The weighing factor used to calculate the PPVX was increased from three to four for Maxeon (corresponding to a market cap of between €800 million and 3.2 billion; $960 million to 3.84 billion).