WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 840772% more annual revenue ($4.94T vs $588.06M). TSM leads profitability with a 51.1% profit margin vs 5.4%. SHLS appears more attractively valued with a PEG of 0.54. TSM earns a higher WallStSmart Score of 86/100 (A).

SHLS

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 7.3Quality: 7.5
Piotroski: 5/9Altman Z: 2.30

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHLSUndervalued (+50.1%)

Margin of Safety

+50.1%

Fair Value

$19.63

Current Price

$7.56

$12.07 discount

UndervaluedFair: $19.63Overvalued
TSMUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$979.05

Current Price

$439.51

$539.54 discount

UndervaluedFair: $979.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHLS3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
47.4%10/10

Revenue surging 47.4% year-over-year

PEG RatioValuation
0.548/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

SHLS4 concerns · Avg: 3.3/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.21B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
83.9x2/10

Trading at 83.9x 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 47.4% demonstrates continued momentum. PEG of 0.54 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : SHLS

The primary concerns for SHLS are P/E Ratio, Market Cap, Return on Equity.

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 1.85 — expect wider price swings.

TSM is growing revenue faster at 50.9% — sustainability is the question.

TSM generates stronger free cash flow (510.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 57/100), backed by strong 51.1% margins and 50.9% revenue growth. SHLS offers better value entry with a 50.1% 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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