WallStSmart

Shoals Technologies Group Inc (SHLS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 829082% more annual revenue ($4.44T vs $535.53M). TSM leads profitability with a 49.9% profit margin vs 6.3%. SHLS appears more attractively valued with a PEG of 0.93. TSM earns a higher WallStSmart Score of 84/100 (A-).

SHLS

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 5.0Value: 7.3Quality: 7.0
Piotroski: 5/9Altman Z: 2.30

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHLSUndervalued (+47.7%)

Margin of Safety

+47.7%

Fair Value

$18.72

Current Price

$8.90

$9.82 discount

UndervaluedFair: $18.72Overvalued
TSMUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$897.55

Current Price

$374.67

$522.88 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHLS4 strengths · Avg: 8.5/10
Revenue GrowthGrowth
74.9%10/10

Revenue surging 74.9% year-over-year

PEG RatioValuation
0.938/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

SHLS4 concerns · Avg: 2.8/10
Market CapQuality
$1.74B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

P/E RatioValuation
47.2x2/10

Premium valuation, high expectations priced in

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
85.2x2/10

Trading at 85.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SHLS

The strongest argument for SHLS centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 74.9% demonstrates continued momentum. PEG of 0.93 suggests the stock is reasonably priced for its growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : SHLS

The primary concerns for SHLS are Market Cap, Return on Equity, Profit Margin. A P/E of 47.2x leaves little room for execution misses.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

SHLS profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.

SHLS carries more volatility with a beta of 1.90 — expect wider price swings.

SHLS is growing revenue faster at 74.9% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (84/100 vs 63/100), backed by strong 49.9% margins and 36.0% revenue growth. SHLS offers better value entry with a 47.7% margin of safety. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Shoals Technologies Group Inc

TECHNOLOGY · SOLAR · USA

Shoals Technologies Group, Inc. provides Electric Balance System (EBOS) solutions for solar energy projects in the United States. The company is headquartered in Portland, Tennessee.

Taiwan Semiconductor Manufacturing

TECHNOLOGY · SEMICONDUCTORS · USA

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.

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