Solid State (SOLI) AI Stock Analysis

• Market Cap: £92.19M
• Dividend Yield: 1.56%
• Average Volume (3M): 101.07K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.35
• 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: 56,730,960
• 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: £240.00
• Price Target Upside: 50.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 192.00 p ▲(20.00% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

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

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.27 indicates low leverage and a healthy capital structure. This durability supports funding of multi‑period engineering programs, absorbs supply‑chain shocks, and preserves capacity for targeted capex or M&A without pressuring liquidity, underpinning long‑term resilience.

Value‑add business model and diversification

The combination of engineered power products (design, assembly, certification) and component distribution creates diversified revenue streams and customer lock‑in via design‑in and supply‑chain services. This structural mix supports higher margins on engineered work and reduces cyclicality versus pure distribution models.

Material contract wins and strategic corporate events

A significant MoD order and other reported contract wins materially increase secured revenue and credibility in mission‑critical markets. Combined with a leadership transition, these events can strengthen government channel relationships, extend backlog visibility, and enable strategic refocusing toward higher‑value segments.

Negative Factors

Severe margin erosion

A collapse in net margin to ~0.4% sharply reduces retained earnings and returns to shareholders. Sustained margin pressure constrains reinvestment in R&D and product certification, weakens pricing power, and raises the risk that higher‑value engineered offerings fail to offset low‑margin distribution over time.

Weak cash conversion

A nearly 29% decline in free cash flow growth and low operating cash flow relative to net income indicate impaired cash conversion. This reduces financial flexibility for sustaining capital expenditure, funding working capital for large contracts, or smoothing cyclicality without resorting to external financing.

Revenue contraction

An ~8.7% revenue decline undermines scale economics and can amplify fixed‑cost leverage, pressuring margins further. Persistent top‑line shrinkage risks eroding supplier negotiation leverage and customer share, making it harder to fund investments needed to shift mix toward higher‑margin engineered products.

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 shows stability in its balance sheet with low leverage, but faces challenges in profitability and cash generation. The income statement highlights a significant decline in net profit margin and revenue, while cash flow shows a decrease in free cash flow growth. Overall, the company needs to address these issues to improve its financial health.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	148.94M	125.06M	163.30M	126.50M	85.00M	66.28M
Gross Profit	41.41M	39.33M	46.44M	39.67M	27.53M	19.92M
EBITDA	9.30M	6.76M	18.58M	13.57M	6.54M	6.37M
Net Income	2.42M	512.00K	8.87M	6.69M	2.52M	3.95M
Balance Sheet
Total Assets	108.76M	104.34M	113.58M	113.79M	62.33M	53.97M
Cash, Cash Equivalents and Short-Term Investments	5.77M	3.51M	8.45M	12.22M	4.98M	6.91M
Total Debt	17.83M	16.57M	16.69M	16.70M	5.64M	6.29M
Total Liabilities	46.52M	42.85M	48.96M	55.83M	35.25M	28.46M
Stockholders Equity	62.24M	61.50M	64.62M	57.91M	27.08M	25.50M
Cash Flow
Free Cash Flow	1.75M	4.35M	8.12M	6.71M	3.27M	5.84M
Operating Cash Flow	3.99M	7.84M	10.95M	9.05M	5.04M	6.50M
Investing Cash Flow	-5.35M	-5.38M	-8.21M	-35.48M	-4.27M	-4.70M
Financing Cash Flow	-2.92M	-7.37M	-6.49M	35.74M	-4.78M	1.64M

Solid State Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 160 is below the 20-day moving average (MA) of 164.60, below the 50-day MA of 164.41, and below the 200-day MA of 164.23, indicating a bearish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 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
SDI	70 Neutral	£79.89M	12.03	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£92.19M	8.13	3.91%	1.56%	8.75%	-54.73%
KETL	68 Neutral	£85.18M	20.27	18.63%	―	-3.41%	58.10%
GHH	65 Neutral	£208.02M	41.75	3.10%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£86.58M	-9.21	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£200.50M	-4.83	-31.42%	―	-16.33%	-448.12%

Solid State Corporate Events

Solid State Executives Receive Shares Under All-Employee Plan

Solid State plc has transferred small tranches of existing ordinary shares to four senior managers under its All-Employee Share Plan following the vesting of awards, with each of the interim chief executive, chief financial officer, and two directors receiving 250 shares at nil cost. The transactions modestly increase the executives’ direct equity stakes, reinforcing management alignment with shareholders while leaving overall ownership and control of the group essentially unchanged.

The reported dealings cover interim CEO John Macmichael, CFO Peter James, director Matthew Richards and sales and operations director Jon Baxter, whose resultant holdings now range from 6,910 to more than 546,000 shares. The move highlights continued use of equity-based incentives within the group’s remuneration framework, a common practice among AIM-listed industrial technology companies seeking to retain key leadership in competitive electronics and defence markets.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £192.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Updates Share Capital and Voting Rights After Treasury Share Transfer

Solid State plc has confirmed that as of 30 January 2026 its issued share capital stands at 57,081,720 ordinary shares, of which 350,758 are held in treasury following the transfer of 2,000 treasury shares into the company’s All-Employee Share Plan, leaving 56,730,962 voting rights in issue. The updated voting rights figure provides the benchmark for shareholders assessing whether they need to disclose changes in their holdings under UK transparency rules, ensuring clarity for investors and maintaining regulatory compliance around significant shareholding notifications.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £175.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Buys Back Shares for Treasury to Fund Future Option Awards

Solid State plc has repurchased 89,985 of its own ordinary shares at 174.44 pence each to be held in treasury, primarily to satisfy future awards under its employee share option schemes. Following the transaction, the company’s issued share capital remains at 57,081,720 ordinary shares, of which 352,758 are now held in treasury, leaving 56,728,962 voting shares in circulation, a figure that will guide investors’ disclosure calculations and underscores the Group’s ongoing use of buybacks as a tool for capital management and employee incentivisation.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £192.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Boosts Treasury Stock with Targeted Share Buyback

Solid State plc has bought back 23,652 of its own ordinary shares at 164.97 pence each to be held in treasury, primarily to satisfy future awards under its share option schemes, in a move that reflects active capital management and support for employee incentive structures. Following this transaction, the company’s issued share capital remains at 57,081,720 ordinary shares, of which 262,773 are now held in treasury, leaving 56,818,947 voting rights in issue, a figure that provides investors with clarity for disclosure requirements under UK market transparency rules.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £172.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State’s Incoming Deputy Chairman Acquires Shares, Signaling Confidence

Solid State plc announced that Victor Chavez, who will become Deputy Chairman on January 1, 2026, has purchased 12,500 shares in the company, representing a 0.02% stake. This move could signal confidence in the company’s future prospects and may impact investor perception positively, potentially influencing the company’s market positioning and stakeholder interests.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £172.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.