Solid State (SOLI) AI Stock Analysis

• Market Cap: £94.91M
• Dividend Yield: 2.23%
• Average Volume (3M): 78.11K
• Price to Earnings (P/E): 186.1
• Beta (1Y): 0.52
• Revenue Growth: -23.42%
• EPS Growth: -94.25%
• Country: UK
• Employees: 400
• Sector: Technology
• Sector Strength: 98
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 56,662,598
• 10 Day Avg. Volume: 56,954
• 30 Day Avg. Volume: 78,108
• 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: £166.00
• Price Target Upside: -0.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: 166.00p ▼(-0.90% Downside)

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 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 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 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	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: Negative
• Last Price: 167.50
• 50DMA: Negative
• 100DMA: Negative
• 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 167.5 is below the 20-day moving average (MA) of 173.50, below the 50-day MA of 184.31, and below the 200-day MA of 168.03, indicating a bearish trend. The MACD of -5.54 indicates Positive momentum. The RSI at 34.27 is Neutral, neither overbought nor oversold. The STOCH value of 37.98 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
QTX	73 Outperform	£127.37M	24.20	27.08%	1.61%	8.19%	―
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
KETL	61 Neutral	£93.32M	22.36	4.44%	9.43%	-1.95%	-110.12%
GHH	57 Neutral	£152.39M	27.99	4.79%	2.35%	1.74%	359.50%
XAR	52 Neutral	£94.69M	―	-15.96%	―	-13.04%	-387.05%
SOLI	51 Neutral	£94.91M	186.11	0.81%	2.23%	-23.42%	-94.25%
TTG	46 Neutral	£161.14M	―	-22.95%	5.65%	-15.12%	-690.29%

Solid State Corporate Events

Solid State plc Releases Annual Report & Announces AGM Details

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.

Solid State plc Transfers Treasury Shares for Employee Grants

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.

Solid State plc Reports Decline in Revenue Amid Contract Timing Challenges

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.

Solid State Secures $5.2M IoT Contract with US Customer

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.

Solid State CEO Executes Strategic Share Transfer

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.