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Solid State PLC (GB:SOLI)
LSE:SOLI
UK Market

Solid State (SOLI) AI Stock Analysis

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GB

Solid State

(LSE:SOLI)

78Outperform
Solid State's strong financial performance and strategic corporate developments drive a solid overall stock score. The recent defense order and plans for production expansion bolster growth prospects, although high technical indicators suggest cautious near-term trading. Valuation metrics remain reasonable, supporting further upside potential.

Solid State (SOLI) vs. S&P 500 (SPY)

Solid State Business Overview & Revenue Model

Company DescriptionSolid 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 MoneySolid 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 robust financial performance across income, balance sheet, and cash flow metrics. With consistent revenue growth and strong profitability margins, the company demonstrates operational efficiency. A healthy balance sheet with manageable debt levels and effective equity utilization provides a stable foundation for future growth. Strong cash flow generation further supports the company's strategic initiatives and expansion plans, positioning Solid State favorably within the Hardware & Equipment industry.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
163.30M126.50M85.00M66.28M67.42M
Gross Profit
46.44M39.67M27.53M19.92M20.80M
EBIT
13.68M9.41M3.73M4.29M4.12M
EBITDA
18.58M13.57M6.54M6.37M6.20M
Net Income Common Stockholders
8.87M6.69M2.52M3.95M3.41M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.45M12.22M4.98M6.91M3.52M
Total Assets
113.58M113.79M62.33M53.97M38.68M
Total Debt
16.69M16.70M5.64M6.29M1.48M
Net Debt
8.24M4.48M660.00K-621.00K-2.04M
Total Liabilities
48.96M55.83M35.25M28.46M16.15M
Stockholders Equity
64.62M57.91M27.08M25.50M22.53M
Cash FlowFree Cash Flow
8.12M6.71M3.27M5.84M6.80M
Operating Cash Flow
9.67M9.05M5.04M6.50M7.66M
Investing Cash Flow
-8.21M-35.48M-4.27M-4.70M-757.00K
Financing Cash Flow
-6.49M35.74M-4.78M1.64M-7.08M

Solid State Technical Analysis

Technical Analysis Sentiment
Positive
Last Price175.00
Price Trends
50DMA
148.24
Positive
100DMA
158.23
Positive
200DMA
215.81
Negative
Market Momentum
MACD
4.39
Negative
RSI
69.37
Neutral
STOCH
90.08
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 175 is above the 20-day moving average (MA) of 152.35, above the 50-day MA of 148.24, and below the 200-day MA of 215.81, indicating a neutral trend. The MACD of 4.39 indicates Negative momentum. The RSI at 69.37 is Neutral, neither overbought nor oversold. The STOCH value of 90.08 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£545.11M25.1318.73%1.27%13.49%47.00%
78
Outperform
£99.16M17.808.61%2.23%-11.80%-32.11%
58
Neutral
$21.45B10.15-18.53%2.32%5.01%-21.90%
55
Neutral
£134.97M205.36-5.28%5.77%-8.12%-794.85%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SOLI
Solid State
175.00
-86.69
-33.13%
GB:RCDO
Ricardo
220.00
-203.59
-48.06%
GB:CHRT
Cohort plc
1,215.00
654.07
116.60%

Solid State Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Solid State Secures $25 Million Defense Order, Plans Production Expansion
Positive
Mar 11, 2025

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.

Business Operations and Strategy
Solid State CFO Transfers Shares to SIPP
Neutral
Feb 6, 2025

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.

Solid State plc Acquires Own Shares for Treasury Holding
Dec 17, 2024

Solid State plc announced the purchase of 383,141 of its own ordinary shares to be held as treasury shares, which are primarily intended for future option schemes. Despite this transaction, the company’s issued share capital remains unchanged, with 56,662,599 voting rights available for shareholders. This move indicates a strategic approach to managing its equity structure and highlights the company’s commitment to providing shareholder value through controlled share distribution.

Solid State Plc Directors Increase Share Holdings
Dec 11, 2024

Solid State plc announced a significant purchase of 54,342 ordinary shares by its board of directors and associated persons. This move indicates a strong vote of confidence from the company’s leadership in its future prospects, potentially enhancing its market position and signaling positive engagement to its stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.