Solid State (SOLI) AI Stock Analysis

• Market Cap: £99.43M
• Dividend Yield: 1.56%
• Average Volume (3M): 101.07K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.30
• 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: 56,818,947
• 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: 191.00p ▲(19.38% 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

Low leverage / strong capital structure

A low debt-to-equity ratio indicates Solid State has limited financial leverage and a healthy equity base, providing durable financial flexibility. This supports funding of long-term contracts, R&D and capital expenditures while reducing default risk during industry cycles, aiding resilience.

Contract wins and recurring revenue

Material government contracts and partnerships create multi-year revenue visibility and recurring maintenance/support income. Such structural revenue streams reduce customer concentration risk, improve backlog predictability, and support investment planning and margin recovery over a multi-quarter horizon.

Stable gross profit margin

A steady gross margin reflects resilient product-level pricing and manufacturing cost control in core hardware lines. This stability provides a foundation to restore operating profitability if SG&A efficiencies are achieved, helping preserve unit economics despite near-term revenue pressures.

Negative Factors

Sharp decline in net profitability

A dramatic fall in net margin signals structural stress in converting sales to shareholder returns. Persistent low profitability limits reinvestment, dividend capacity, and ability to compete on contract pricing, increasing risk that margins remain depressed absent meaningful cost or revenue recovery.

Weak cash conversion and FCF decline

Substantial negative FCF growth and low cash-to-income conversion reduce financial flexibility. Over months this constrains capital allocation for capex, working capital for contract fulfilment, and potential M&A or R&D investments, raising execution risk on growth initiatives.

Revenue contraction and margin compression

Declining sales and compressed operating margins indicate weakening demand or competitive pressure. This erodes scale and operating leverage, making cost absorption harder and prolonging recovery timeframes; without sustained revenue stabilization, profitability improvements will be difficult.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Positive
• Last Price: 160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SOLI, the sentiment is Positive. The current price of 160 is below the 20-day moving average (MA) of 160.80, above the 50-day MA of 152.76, and below the 200-day MA of 166.47, indicating a bullish trend. The MACD of 4.23 indicates Negative momentum. The RSI at 75.08 is Negative, neither overbought nor oversold. The STOCH value of 83.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£78.43M	17.12	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£99.43M	41.08	3.88%	1.56%	8.75%	-54.73%
KETL	68 Neutral	£111.51M	14.61	18.63%	―	-3.41%	58.10%
GHH	67 Neutral	£167.55M	45.13	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.86M	-7.25	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£199.43M	-2.85	-31.42%	―	-16.33%	-448.12%

Solid State Corporate Events

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.

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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State’s 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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

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.

The most recent analyst rating on (GB:SOLI) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Solid State stock, see the GB:SOLI Stock Forecast page.

Solid State Secures $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.