Solid State (SOLI) AI Stock Analysis

• Market Cap: £81.00M
• Dividend Yield: 1.61%
• Average Volume (3M): 101.07K
• Price to Earnings (P/E): 158.3
• Beta (1Y): 0.26
• Revenue Growth: 8.75%
• EPS Growth: -54.73%
• Country: UK
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.07
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 172.00p ▲(10.97% Upside)

Solid State's overall stock score reflects a stable financial position with challenges in profitability and cash flow. The technical analysis indicates short-term bullish momentum, while the valuation suggests potential overvaluation. Positive corporate events, including significant contract wins and strategic partnerships, bolster the company's growth prospects. However, the high P/E ratio and declining profitability are key risks.

Positive Factors

Diversified Revenue Model

A diversified revenue model with direct sales and partnerships ensures stable income streams and reduces dependency on single revenue sources.

Stable Balance Sheet

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

Recurring Revenue Streams

Recurring revenue from long-term contracts and services enhances predictability of cash flows, supporting sustainable growth.

Negative Factors

Declining Profitability

Decreased profitability indicates challenges in cost management or pricing power, potentially impacting long-term financial health.

Negative Revenue Growth

Negative revenue growth suggests declining market demand or competitive pressures, which could hinder future expansion and market share.

Cash Flow Challenges

Declining cash flow growth limits reinvestment capabilities and may strain operations, affecting long-term financial sustainability.

Solid State Business Overview & Revenue Model

Company Description

Solid State (SOLI) is a technology company specializing in the design and manufacture of high-performance electronic components and systems, primarily focused on the defense, aerospace, and industrial sectors. The company offers a range of products, including power supplies, ruggedized computing solutions, and advanced signal processing systems, catering to the needs of clients that require reliable and durable electronic solutions in demanding environments.

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: Neutral
• Last Price: 155.00
• 50DMA: Positive
• 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 Neutral. The current price of 155 is above the 20-day moving average (MA) of 149.43, above the 50-day MA of 153.74, and below the 200-day MA of 168.07, indicating a neutral trend. The MACD of 2.59 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SOLI.

Solid State Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	74 Outperform	£125.92M	23.92	27.08%	1.96%	8.19%	―
SOLI	68 Neutral	£81.00M	158.33	3.88%	1.61%	8.75%	-54.73%
GHH	67 Neutral	£155.04M	28.39	3.13%	2.20%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£99.67M	-8.91	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%
KETL	46 Neutral	£81.85M	10.72	18.63%	―	-3.41%	58.10%

Solid State Corporate Events

Solid State plc Reports Strong Interim Results Amid Leadership Transition

Solid State plc reported strong interim results for the first half of the 2025/26 financial year, with a 38.6% increase in headline revenues to £85.7 million, driven by a major communications order. Despite a slower order intake initially, the company has seen a recovery in the second half, maintaining confidence in meeting full-year market expectations. The company is also navigating the transition following the passing of long-time CEO Gary Marsh, with John Macmichael stepping in as interim CEO. The company continues to invest in expanding its facilities and capabilities, securing significant contracts, and strengthening its board, positioning itself for strategic growth despite challenges in the industrial sector.

Solid State Strengthens Board with New Deputy Chairman Appointment

Solid State plc has announced the appointment of Victor Chavez CBE as Non-Executive Deputy Chairman, effective from January 1, 2026. Chavez brings over 35 years of experience in the defense, aerospace, and security sectors, having previously served as CEO at Thales UK. His extensive background in leading major defense and security programs is expected to significantly contribute to Solid State’s development and strengthen its board. This strategic appointment is part of the company’s broader succession planning and aims to enhance its industry positioning and operational capabilities.

Solid State’s Custom Power Secures $7.4 Million in Orders

Solid State’s Power Division, Custom Power, has secured $7.4 million in orders for battery packs across various sectors in the UK and US, including UAVs, maritime technologies, and medical devices. This achievement underscores the company’s strategic focus on delivering high-quality engineered solutions and strengthens its position as a leading provider of advanced battery technology for mission-critical applications. The new orders from Tier 1 defense and commercial customers highlight Solid State’s growing influence in the expanding market for autonomous and cordless technologies.

Solid State PLC Announces Passing of CEO and Interim Leadership Appointment

Solid State PLC has announced the passing of its Chief Executive Officer, Gary Marsh, after a short illness. John Macmichael, the Managing Director of Solsta, the company’s Components division, will serve as Interim Chief Executive, supported by an experienced Board and management team. The company assures stakeholders of continued leadership and business continuity, with Chairman Nigel Rogers expressing confidence in the company’s future growth despite the loss.

Solid State plc Reports Strong Half-Year Performance Amid Market Challenges

Solid State plc reported a robust half-year performance with revenues and adjusted profits before tax exceeding expectations, driven by strong defense and security sales. Despite challenges such as tariff uncertainties in the USA and a weaker industrial sector, the company achieved significant growth through strategic diversification and enhanced customer relationships, particularly with Tier 1 clients. The new integrated systems facility has bolstered technical capabilities, and the company secured a significant contract with the UK Ministry of Defence. The Power division’s strategic shift towards higher-value activities has resulted in key orders from Tier 1 customers in robotics, drone, and naval sonar buoy sectors. With a solid open order book and positive order intake, Solid State is confident in meeting full-year expectations despite global geopolitical and economic challenges.

Solid State plc Announces Director Share Dealings

Solid State plc has announced a series of transactions involving its directors and their closely associated persons. These transactions, which include ‘Bed and ISA’ dealings, have resulted in no change to Director Matthew Richards’ overall shareholding, while Group Finance Director Pete James has increased his shareholding to 155,149 ordinary shares. The transactions reflect internal share management strategies and may indicate confidence in the company’s future performance.

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.

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.

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.

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.