Solid State (SOLI) AI Stock Analysis

• Market Cap: £81.00M
• Dividend Yield: 1.75%
• Average Volume (3M): 101.07K
• Price to Earnings (P/E): 158.3
• Beta (1Y): 0.26
• Revenue Growth: -23.42%
• EPS Growth: -94.25%
• Country: UK
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 56,842,598
• 10 Day Avg. Volume: 70,666
• 30 Day Avg. Volume: 101,069
• PEG Ratio: -1.97
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 21.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.5
• Revenue Forecast (FY): £14.52B

• Rating: 55 Neutral
• Price Target: 164.00p ▲(15.09% Upside)

Solid State's overall stock score reflects significant challenges in financial performance and valuation. The company's declining profitability and high P/E ratio are major concerns. Technical analysis indicates bearish momentum, further impacting the score. The stable balance sheet provides some support, but improvements in profitability and valuation are needed to enhance the stock's attractiveness.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage provides financial flexibility and resilience, supporting long-term operational stability and growth.

Strong Capital Structure

A strong capital structure ensures the company can sustain operations and invest in growth opportunities, enhancing its competitive position.

Consistent Gross Profit Margin

Maintaining a stable gross profit margin indicates effective cost management and pricing power, essential for long-term profitability.

Negative Factors

Declining Profitability

Reduced profitability limits reinvestment in the business, potentially affecting growth and competitiveness over time.

Revenue Contraction

A decline in revenue growth can hinder market expansion and reduce the company's ability to capitalize on new opportunities.

Cash Flow Challenges

Challenges in cash flow growth can strain liquidity, limiting the company's ability to fund operations and strategic initiatives.

Solid State Business Overview & Revenue Model

Company Description

Solid State plc designs and manufactures electronic equipment and supplies the value added electronic components and materials in the United Kingdom, rest of Europe, Asia, North America, and internationally. It operates through Components and Systems divisions. The Components division supplies designed-in products and solutions at the component and sub assembly level to the original equipment manufacturers and the contract electronics manufacturing communities for use in 5G and the Internet of Things, embedded processing, control, wireless and wired communications, electromechanical, power management, optical emitters, sensors, displays, and LED lighting. The Systems division manufactures industrial computers; custom battery packs; and advanced communication systems, including specialist antennas, radios, and video transmission products. This division also designs and manufactures image capture, processing, and transmission computing systems. The company also supplies opto-electronic components. It serves security and defense, medical, greentech, energy, transport, and industrial sectors. The company was formerly known as Solid State Supplies plc and changed its name to Solid State plc in May 2006. Solid State plc was incorporated in 1963 and is headquartered in Redditch, the United Kingdom.

How the Company Makes Money

Solid State generates revenue through the sale of its electronic components and systems, which include power supplies, embedded computing platforms, and custom engineering services. The company has a diversified revenue model that includes direct sales to government and defense contractors, as well as partnerships with other technology firms for joint development projects. Additionally, Solid State benefits from long-term contracts and recurring revenue streams through maintenance and support services for its products. Key partnerships with defense agencies and prime contractors further bolster its market position and contribute significantly to its earnings.

Solid State Financial Statement Overview

Summary

Solid State's financial performance is challenged by declining profitability and cash generation, despite a stable balance sheet with low leverage. The income statement shows a significant decline in net profit margin and revenue growth, while the cash flow statement highlights a drop in free cash flow growth. The balance sheet remains stable, indicating a need for improved profitability.

Income Statement

Solid State's income statement reveals a mixed performance. The gross profit margin has remained relatively stable, but the net profit margin has significantly declined from 5.43% in 2024 to 0.41% in 2025, indicating reduced profitability. The revenue growth rate is negative at -8.68%, reflecting a contraction in sales. EBIT and EBITDA margins have also decreased, suggesting operational challenges. Despite these issues, the company has maintained a consistent gross profit margin, which is a positive sign.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.27, indicating low leverage. Return on equity has decreased to 0.83% in 2025 from 13.73% in 2024, reflecting reduced profitability for shareholders. The equity ratio remains healthy, suggesting a strong capital structure. Overall, the balance sheet indicates stability but highlights a need for improved profitability.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate at -28.98%. The operating cash flow to net income ratio is 0.23, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.55, showing a decline in cash conversion efficiency. Despite these challenges, the company has maintained positive operating cash flow, which is crucial for ongoing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.06M	125.06M	163.30M	126.50M	85.00M	66.28M
Gross Profit	34.05M	39.33M	46.44M	39.67M	27.53M	19.92M
EBITDA	6.61M	6.76M	18.58M	13.57M	6.54M	6.37M
Net Income	512.00K	512.00K	8.87M	6.69M	2.52M	3.95M
Balance Sheet
Total Assets	104.34M	104.34M	113.58M	113.79M	62.33M	53.97M
Cash, Cash Equivalents and Short-Term Investments	3.51M	3.51M	8.45M	12.22M	4.98M	6.91M
Total Debt	16.57M	16.57M	16.69M	16.70M	5.64M	6.29M
Total Liabilities	42.85M	42.85M	48.96M	55.83M	35.25M	28.46M
Stockholders Equity	61.50M	61.50M	64.62M	57.91M	27.08M	25.50M
Cash Flow
Free Cash Flow	4.65M	4.35M	8.12M	6.71M	3.27M	5.84M
Operating Cash Flow	6.94M	7.84M	10.95M	9.05M	5.04M	6.50M
Investing Cash Flow	-5.38M	-5.38M	-8.21M	-35.48M	-4.27M	-4.70M
Financing Cash Flow	-6.46M	-7.37M	-6.49M	35.74M	-4.78M	1.64M

Solid State Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SOLI, the sentiment is Negative. The current price of 142.5 is below the 20-day moving average (MA) of 143.85, below the 50-day MA of 156.64, and below the 200-day MA of 167.58, indicating a bearish trend. The MACD of -3.90 indicates Negative momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SOLI.

Solid State Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	72 Outperform	£125.92M	23.92	27.08%	1.98%	8.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.62%	1.74%	359.50%
TTG	56 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%
SOLI	55 Neutral	£81.00M	158.33	0.81%	1.75%	-23.42%	-94.25%
XAR	48 Neutral	£99.67M	-8.91	-16.64%	―	-7.35%	-222.10%
KETL	46 Neutral	£78.64M	10.23	18.63%	―	-3.41%	58.10%

Solid State Corporate Events

Solid State Secures $10.8 Million UK MoD Order for Project CAIN

Solid State plc, through its subsidiary Steatite Ltd, has secured a $10.8 million order under Project CAIN, a significant defense program for the UK Ministry of Defence. This contract marks a milestone in Steatite’s strategy to provide advanced, mission-critical technologies to the UK’s armed forces, enhancing its reputation as a reliable supplier of secure technology solutions. The project, which involves delivering ruggedized systems like the MPU5 and Wave Relay Radio Technology, is set to bolster the UK’s defense capabilities and aligns with strategic military goals. This development strengthens Solid State’s industry positioning and underscores its commitment to innovation and operational excellence.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Executives Acquire Shares Reflecting Confidence in Future

Solid State plc announced that several key executives, including CEO Gary Marsh, have acquired shares under the company’s All-Employee Share Plan. This move reflects confidence in the company’s future prospects and aligns the interests of management with those of shareholders. The acquisitions, involving a small number of shares, are part of a broader strategy to incentivize and retain leadership talent, potentially impacting the company’s operational focus and stakeholder relations positively.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Secures £1.65M Defence Contract for Integrated Systems

Solid State plc’s manufacturing subsidiary, Steatite, has secured a £1.65 million contract from the Defence Science and Technology Laboratory, an agency of the UK’s Ministry of Defence, to design and supply complex integrated systems. This contract will be executed at Steatite’s new integrated systems facility, highlighting the company’s commitment to supporting UK defense capabilities with high-quality engineered solutions. The contract involves producing rugged cabinet enclosures with precision-engineered components designed to meet MOD specifications, emphasizing Steatite’s strategic importance in delivering mission-critical systems. The majority of the contract is expected to be fulfilled in the current and following financial year.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State and Volklec Partner to Power UK Defence

Solid State plc has announced a strategic partnership between its Custom Power division and Volklec, the UK’s only independent battery manufacturer, to provide a comprehensive energy solution for the UK defense sector. This collaboration aims to create a fully integrated capability, from cell development to battery pack design and support, leveraging Volklec’s 21700 lithium-ion cell technology and Custom Power’s bespoke battery management systems. The partnership, facilitated by MAKE UK Defence, is designed to enhance UK industrial resilience by advancing domestic energy technology and reducing reliance on foreign suppliers, aligning with the UK’s 2025 Strategic Defence Review and supporting the government’s Net Zero policy.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £166.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.