Solid State (SOLI) AI Stock Analysis

• Market Cap: £100.01M
• Dividend Yield: 210.14%
• Average Volume (3M): 82.03K
• Price to Earnings (P/E): 196.1
• Beta (1Y): 0.47
• Revenue Growth: -11.80%
• EPS Growth: -32.11%
• Country: UK
• Employees: 400
• Sector: Technology
• Sector Strength: 93
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 56,662,598
• 10 Day Avg. Volume: 118,485
• 30 Day Avg. Volume: 82,034
• PEG Ratio: 0.16
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.71
• 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

• Rating: 78 Outperform
• Price Target: ―

Solid State demonstrates strong financial fundamentals with consistent revenue growth, profitability, and efficient cash flow generation, underpinned by a stable balance sheet. Technical indicators suggest cautious optimism with positive momentum, while fair valuation and strategic corporate events, including securing significant orders and expanding production capabilities, enhance its long-term growth potential. These factors position Solid State as a moderately attractive investment in the Hardware, Equipment & Parts industry.

Solid State Business Overview & Revenue Model

Company Description

Solid State (SOLI) is a technology company that specializes in the design, development, and distribution of electronic components and systems. The company operates in sectors including aerospace, defense, medical, energy, and transportation, providing a broad range of products such as semiconductors, sensors, and power management systems to meet the specific needs of its clients.

How the Company Makes Money

Solid State makes money primarily through the sale of its electronic components and systems to various industries. The company's revenue model is based on manufacturing and supplying these products to original equipment manufacturers (OEMs) and other businesses. Key revenue streams include direct sales of customized and standardized components, as well as long-term contracts with major clients in sectors like aerospace and defense. Additionally, the company benefits from strategic partnerships with technology firms and suppliers, which enhance its product offerings and market reach.

Solid State Financial Statement Overview

Summary

Solid State exhibits strong financial performance with robust revenue and cash flow growth, healthy profitability margins, and a solid balance sheet with manageable debt levels. These factors provide a stable foundation for future growth and strategic initiatives.

Income Statement

Solid State has demonstrated a strong revenue growth trajectory, with the latest annual revenue increasing by 29.1% from the previous year. Gross Profit Margin stands at 28.4%, indicating efficient production cost management. The Net Profit Margin improved to 5.4%, reflecting enhanced profitability. Additionally, the EBIT and EBITDA margins of 8.4% and 11.4%, respectively, suggest robust operational efficiency. The company is well-positioned in its industry, though there is room for further improvement in net profitability.

Balance Sheet

The balance sheet reflects stability with a Debt-to-Equity Ratio of 0.26, showcasing prudent leverage use. The Return on Equity (ROE) is 13.7%, indicating effective management of equity capital. The Equity Ratio of 56.9% further underscores a strong capital structure. While the financial position is solid, attention to maintaining low debt levels remains crucial.

Cash Flow

Solid State has shown significant improvement in cash flow generation, evidenced by a Free Cash Flow Growth Rate of 21%. The Operating Cash Flow to Net Income Ratio is 1.23, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 0.91 highlights the company's capability to convert earnings into cash flow efficiently, supporting future growth opportunities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	136.95M	163.30M	126.50M	85.00M	66.28M	67.42M
Gross Profit	38.38M	46.44M	39.67M	27.53M	19.92M	20.80M
EBITDA	13.99M	18.58M	13.57M	6.54M	6.37M	6.20M
Net Income	5.34M	8.87M	6.69M	2.52M	3.95M	3.41M
Balance Sheet
Total Assets	99.06M	113.58M	113.79M	62.33M	53.97M	38.68M
Cash, Cash Equivalents and Short-Term Investments	8.35M	8.45M	12.22M	4.98M	6.91M	3.52M
Total Debt	14.07M	16.69M	16.70M	5.64M	6.29M	1.48M
Total Liabilities	36.59M	48.96M	55.83M	35.25M	28.46M	16.15M
Stockholders Equity	62.47M	64.62M	57.91M	27.08M	25.50M	22.53M
Cash Flow
Free Cash Flow	6.13M	8.12M	6.71M	3.27M	5.84M	6.80M
Operating Cash Flow	8.82M	10.95M	9.05M	5.04M	6.50M	7.66M
Investing Cash Flow	-2.90M	-8.21M	-35.48M	-4.27M	-4.70M	-757.00K
Financing Cash Flow	-6.21M	-6.49M	35.74M	-4.78M	1.64M	-7.08M

Solid State Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 176.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 176.5 is below the 20-day moving average (MA) of 191.57, below the 50-day MA of 187.35, and above the 200-day MA of 173.32, indicating a neutral trend. The MACD of -3.13 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 9.42 is Positive, 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
SOLI	78 Outperform	£100.01M	196.11	0.81%	210.14%	-11.80%	-32.11%
CHRT	76 Outperform	£706.04M	34.44	14.40%	97.28%	13.49%	47.00%
Sector *	62 Neutral	£510.88M	22.63	-8.61%	186.64%	4.26%	-25.59%
RCDO	62 Neutral	£263.78M	205.36	-5.28%	338.03%	-8.12%	-794.85%
AWE	60 Neutral	£1.34B	―	-8.85%	―	-7.49%	20.55%
TTG	54 Neutral	£186.69M	―	-22.95%	478.67%	-15.12%	-690.29%

Solid State Corporate Events

Solid State plc Exceeds Expectations with Strong FY24/25 Performance

Solid State plc has announced a trading update for the fiscal year ending March 31, 2025, reporting revenues and adjusted profit before tax exceeding expectations at £124 million and £4.25 million, respectively. The company has experienced strong demand in its defense sector, particularly with a significant £19 million communications order, while also consolidating its Power business under the Custom Power brand to enhance efficiency. Despite challenges such as increased costs due to tax legislation changes and minimum wage hikes, Solid State remains optimistic about growth prospects, supported by a robust order book and strategic investments in production capabilities, especially in the US and antenna markets. The company is also actively developing its acquisition pipeline in the UK, US, and Asia, aiming to capitalize on opportunities created by global tariff changes and the shift away from Chinese content.

Spark’s Take on GB:SOLI Stock

According to Spark, TipRanks’ AI Analyst, GB:SOLI is a Outperform.

Solid State demonstrates strong financial performance with consistent revenue and cash flow growth, supported by a solid balance sheet. The technical indicators provide a mixed short-term outlook, but the company’s fair valuation and strategic defense contract bolster its long-term growth prospects. These factors, combined with a steady dividend, position Solid State as a moderately attractive investment in the Hardware, Equipment & Parts industry.

To see Spark’s full report on GB:SOLI stock, click here.

Solid State Secures $25 Million Defense Order, Plans Production Expansion

Solid State plc has secured a $25 million order for communications equipment under a defense program, which will be delivered in the financial year ending March 2026. This order, initially delayed due to a UK government change and a Strategic Defence Review, signifies the strategic importance of Solid State’s technology amid global security concerns. The company plans to enhance its production capabilities in the US and UK to support organic growth in the defense and security sector, reflecting confidence in its market prospects despite previous disruptions.

Solid State CFO Transfers Shares to SIPP

Solid State plc has announced a share transaction involving Peter James, the Chief Financial Officer, and his wife Rosemary James. The transaction involves transferring ordinary shares from their personal holdings into Rosemary’s self-invested personal pension (SIPP) through a sale and repurchase process. Despite the transaction, the total number of shares held by Peter James and his closely associated persons remains unchanged at 106,260. This reflects a strategic financial maneuver rather than a change in stake, ensuring financial stability and continuity within the company’s executive team.