tiprankstipranks
Trending News
More News >
Solid State PLC (GB:SOLI)
LSE:SOLI
UK Market
Advertisement

Solid State (SOLI) AI Stock Analysis

Compare
11 Followers

Top Page

GB:SOLI

Solid State

(LSE:SOLI)

Rating:51Neutral
Price Target:
166.00p
▲(7.10% Upside)
Solid State's overall stock score reflects significant challenges in financial performance and technical analysis, with a high P/E ratio indicating overvaluation. While corporate events show potential for future growth, the current financial and technical conditions weigh heavily on the stock's attractiveness.

Solid State (SOLI) vs. iShares MSCI United Kingdom ETF (EWC)

Solid State Business Overview & Revenue Model

Company DescriptionSolid 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 MoneySolid State generates revenue through multiple streams, primarily from the sale of electronic components and systems to clients in high-requirement sectors such as defense, aerospace, and industrial applications. The company's revenue model includes direct sales of its proprietary products, as well as contract manufacturing services for bespoke solutions tailored to specific customer needs. Additionally, SOLI benefits from long-term partnerships and contracts with key clients, which provide a steady income stream. The company also engages in research and development to innovate new products, enhancing its market position and driving future sales growth.

Solid State Financial Statement Overview

Summary
Solid State's financial performance shows stability in the balance sheet with low leverage, but significant challenges in profitability and cash flow. The income statement reveals declining net profit margins and negative revenue growth, while cash flow analysis indicates reduced cash conversion efficiency.
Income Statement
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue125.06M125.06M163.30M126.50M85.00M66.28M
Gross Profit34.05M39.33M46.44M39.67M27.53M19.92M
EBITDA6.61M6.76M18.58M13.57M6.54M6.37M
Net Income512.00K512.00K8.87M6.69M2.52M3.95M
Balance Sheet
Total Assets104.34M104.34M113.58M113.79M62.33M53.97M
Cash, Cash Equivalents and Short-Term Investments3.51M3.51M8.45M12.22M4.98M6.91M
Total Debt16.57M16.57M16.69M16.70M5.64M6.29M
Total Liabilities42.85M42.85M48.96M55.83M35.25M28.46M
Stockholders Equity61.50M61.50M64.62M57.91M27.08M25.50M
Cash Flow
Free Cash Flow4.65M4.35M8.12M6.71M3.27M5.84M
Operating Cash Flow6.94M7.84M10.95M9.05M5.04M6.50M
Investing Cash Flow-5.38M-5.38M-8.21M-35.48M-4.27M-4.70M
Financing Cash Flow-6.46M-7.37M-6.49M35.74M-4.78M1.64M

Solid State Technical Analysis

Technical Analysis Sentiment
Negative
Last Price155.00
Price Trends
50DMA
174.91
Negative
100DMA
177.37
Negative
200DMA
163.11
Negative
Market Momentum
MACD
-5.69
Negative
RSI
29.76
Positive
STOCH
51.99
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 155 is below the 20-day moving average (MA) of 158.30, below the 50-day MA of 174.91, and below the 200-day MA of 163.11, indicating a bearish trend. The MACD of -5.69 indicates Negative momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 51.99 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£134.64M25.5727.08%1.98%8.19%
61
Neutral
$35.45B7.89-10.11%1.88%8.47%-9.45%
57
Neutral
£134.22M24.654.79%2.63%1.74%359.50%
54
Neutral
£105.74M22.364.44%9.43%-1.95%-110.12%
52
Neutral
£179.24M-22.95%5.24%-15.12%-690.29%
51
Neutral
£88.68M173.890.81%2.41%-23.42%-94.25%
49
Neutral
£93.50M-16.64%-7.35%-222.10%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SOLI
Solid State
152.50
-118.04
-43.63%
GB:GHH
Gooch & Housego
502.00
53.09
11.83%
GB:QTX
Quartix Holdings
292.00
119.83
69.60%
GB:TTG
TT Electronics
96.00
-55.55
-36.65%
GB:XAR
Xaar plc
119.50
10.50
9.63%
GB:KETL
Strix Group
44.05
-39.45
-47.25%

Solid State Corporate Events

Shareholder MeetingsFinancial Disclosures
Solid State plc Releases Annual Report & Announces AGM Details
Neutral
Jul 17, 2025

Solid State plc has announced the posting of its Annual Report & Accounts and Notice of AGM to shareholders, with the documents also accessible on the company’s website. The AGM is scheduled for September 11, 2025, at Walbrook PR’s London offices and will be available for remote attendance, though remote voting is not possible. The company encourages shareholders to submit proxy votes early and register for the AGM in advance. Additionally, Solid State offers site visits to its Redditch head office, showcasing operations from its Systems and Components divisions, inviting interested investors to contact them for more information.

Business Operations and StrategyRegulatory Filings and Compliance
Solid State plc Transfers Treasury Shares for Employee Grants
Neutral
Jul 10, 2025

Solid State plc has announced the transfer of 90,000 ordinary shares from Treasury to satisfy employee grants under its All Employee Share Plan. This move involves conditional awards of 250 shares each to executive officers, which will be retained until vesting conditions are satisfied. Following this transfer, Solid State holds 329,121 shares in Treasury, with a total issued share capital of 57,081,720 shares. The announcement highlights Solid State’s commitment to employee incentives and maintains transparency in its shareholding structure, potentially impacting shareholder calculations under FCA rules.

Business Operations and StrategyFinancial Disclosures
Solid State plc Reports Decline in Revenue Amid Contract Timing Challenges
Negative
Jul 8, 2025

Solid State plc reported its final results for the year ending March 31, 2025, showing a decline in revenue and profitability due to the timing of major contracts. The company’s revenue fell by 23.4% to £125.1m, and adjusted operating profit dropped by 64.7% to £6.0m, impacted by the pull-forward of revenues into the previous year and a delay in a significant defense contract. Despite these challenges, Solid State remains optimistic about returning to growth in the next financial year, supported by a strong order book and strategic investments in acquisitions and infrastructure. The company secured a $25m communications equipment order and a $5.1m IoT contract, reflecting its resilience and positioning to benefit from structural growth opportunities in key sectors.

Product-Related AnnouncementsBusiness Operations and Strategy
Solid State Secures $5.2M IoT Contract with US Customer
Positive
May 16, 2025

Solid State plc has secured a follow-on $5.2 million contract from a US customer for its IoT technology product, initially supplied in May 2024. This order, to be delivered by the Components division, Solsta, involves smart vending machine solutions that integrate industrial routers with cloud-based services for intelligent inventory management. The contract underscores Solid State’s combined hardware and software capabilities and its international reach, reinforcing its market position and stakeholder confidence.

Business Operations and Strategy
Solid State CEO Executes Strategic Share Transfer
Neutral
May 15, 2025

Solid State plc announced that CEO Gary Marsh transferred shares to his and his spouse’s ISAs, selling 21,622 shares from his personal holdings and purchasing 10,803 shares into his ISA, while his spouse, Laura Marsh, purchased 10,802 shares into her ISA. This transaction reflects a strategic financial move by the CEO, potentially impacting stakeholder perceptions and demonstrating confidence in the company’s future prospects.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025