Solid State (SOLI) AI Stock Analysis

• Market Cap: £114.74M
• Dividend Yield: 1.84%
• Average Volume (3M): 99.50K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.10
• Revenue Growth: -11.80%
• EPS Growth: -32.11%
• Country: UK
• Employees: 433
• Sector: Technology
• Sector Strength: 45
• Industry: Hardware & Equipment
• EPS (TTM): 0.09
• Shares Outstanding: 56,662,598
• 10 Day Avg. Volume: 153,889
• 30 Day Avg. Volume: 99,502
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.70
• Price to Cash Flow (P/CF): 5.40
• P/FCF Ratio: 0.00
• 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

Solid State's strong financial performance and strategic positioning in the defense sector provide a solid foundation for growth. The stock's upward momentum and reasonable valuation further support its attractiveness, although technical indicators suggest caution due to potential overbought conditions. The significant defense order and expansion plans underscore its growth trajectory, contributing positively to the overall score.

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 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

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
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
163.30M	126.50M	85.00M	66.28M	67.42M
	Gross Profit
46.44M	39.67M	27.53M	19.92M	20.80M
	EBIT
13.68M	9.41M	3.73M	4.29M	4.12M
	EBITDA
18.58M	13.57M	6.54M	6.37M	6.20M
	Net Income Common Stockholders
8.87M	6.69M	2.52M	3.95M	3.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.45M	12.22M	4.98M	6.91M	3.52M
	Total Assets
113.58M	113.79M	62.33M	53.97M	38.68M
	Total Debt
16.69M	16.70M	5.64M	6.29M	1.48M
	Net Debt
8.24M	4.48M	660.00K	-621.00K	-2.04M
	Total Liabilities
48.96M	55.83M	35.25M	28.46M	16.15M
	Stockholders Equity
64.62M	57.91M	27.08M	25.50M	22.53M
Cash Flow		Free Cash Flow
8.12M	6.71M	3.27M	5.84M	6.80M
	Operating Cash Flow
9.67M	9.05M	5.04M	6.50M	7.66M
	Investing Cash Flow
-8.21M	-35.48M	-4.27M	-4.70M	-757.00K
	Financing Cash Flow
-6.49M	35.74M	-4.78M	1.64M	-7.08M

Solid State Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 195 is above the 20-day moving average (MA) of 156.60, above the 50-day MA of 151.02, and below the 200-day MA of 214.86, indicating a neutral trend. The MACD of 9.82 indicates Negative momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 91.10 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
CHRT	79 Outperform	£549.64M	25.34	18.73%	1.26%	13.49%	47.00%
SOLI	78 Outperform	£114.74M	21.52	8.61%	1.84%	-11.80%	-32.11%
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
RCDO	53 Neutral	£136.84M	205.36	-5.28%	5.77%	-8.12%	-794.85%

Solid State Corporate Events

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.

Solid State plc Acquires Own Shares for Treasury Holding

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.