Last Update 08 May 25
Fair value Decreased 49%- Post-COVID Comeback 🚀 Sales crashed in 2020 but shot up ~50 % in 2023 thanks to buying the AVID gadget-store chain.
- Next Growth Engines 🔧
- Mega Warehouse for Maersk 🏗️📦 — steady rent.
- More Gadgets & Appliances 📱🖥️ — expanding stores and online sales (thin margins, but volume helps).
- Property Rentals & Hotels 🏢🛏️ — higher occupancy and room rates = reliable cash.
- Tech Repairs & Assembly 🔨 — Omni Solid fixes Sony/MyPhone gear and assembles TVs.
- Cash to Spend 💰 Very low debt → room for another acquisition that could quickly pump up sales.
- Why Doubling in 5 Years Is Bold but Possible 🎯 Needs roughly +16 % sales growth every year. Achievable if:
- the warehouse fills fast,
- consumer demand stays strong, and
- SGI lands at least one more big deal or new venture.
- Main Risks ⚠️
- Cut-throat phone/electronics competition 🤺
- Project delays 🕒 (warehouse, new stores)
- Economic speed bumps 🌪️ (inflation, recession)
- Market’s Mood Right Now 😐 Stock is cheap (~4× earnings) and yields ~8 % in dividends, but investors are waiting for proof the big growth story is real.
- Bottom Line 📊 A 110 % jump in revenue is optimistic—but not crazy. SGI must execute flawlessly and ride a healthy economy to hit the target. Not a slam-dunk, but a realistic stretch goal..
Have other thoughts on Solid Group?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeHow well do narratives help inform your perspective?
Disclaimer
The user chuipopapps has a position in PSE:SGI. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.