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SOLI

Solid State AIM:SOLI Stock Report

Last Price

UK£11.45

Market Cap

UK£97.9m

7D

1.8%

1Y

11.2%

Updated

29 Jun, 2022

Data

Company Financials +
SOLI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends4/6

SOLI Stock Overview

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.

Solid State Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Solid State
Historical stock prices
Current Share PriceUK£11.45
52 Week HighUK£14.19
52 Week LowUK£8.71
Beta1.35
1 Month Change9.05%
3 Month Change-2.55%
1 Year Change11.17%
3 Year Change140.55%
5 Year Change179.44%
Change since IPO1,172.22%

Recent News & Updates

Apr 28
Is Now The Time To Look At Buying Solid State plc (LON:SOLI)?

Is Now The Time To Look At Buying Solid State plc (LON:SOLI)?

Solid State plc ( LON:SOLI ), might not be a large cap stock, but it saw a significant share price rise of over 20% in...

Mar 23
Solid State (LON:SOLI) Might Be Having Difficulty Using Its Capital Effectively

Solid State (LON:SOLI) Might Be Having Difficulty Using Its Capital Effectively

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

SOLIGB ElectronicGB Market
7D1.8%-0.4%2.4%
1Y11.2%-23.5%-6.7%

Return vs Industry: SOLI exceeded the UK Electronic industry which returned -24.2% over the past year.

Return vs Market: SOLI exceeded the UK Market which returned -6.8% over the past year.

Price Volatility

Is SOLI's price volatile compared to industry and market?
SOLI volatility
SOLI Average Weekly Movement5.7%
Electronic Industry Average Movement5.0%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: SOLI is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SOLI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1963300Gary Marshhttps://www.solidstateplc.com

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, Value Added Services and Manufacturing divisions. The Value Added Services 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.

Solid State Fundamentals Summary

How do Solid State's earnings and revenue compare to its market cap?
SOLI fundamental statistics
Market CapUK£97.86m
Earnings (TTM)UK£3.61m
Revenue (TTM)UK£72.59m

27.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOLI income statement (TTM)
RevenueUK£72.59m
Cost of RevenueUK£49.67m
Gross ProfitUK£22.92m
Other ExpensesUK£19.31m
EarningsUK£3.61m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.42
Gross Margin31.57%
Net Profit Margin4.97%
Debt/Equity Ratio7.5%

How did SOLI perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SOLI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOLI?

Other financial metrics that can be useful for relative valuation.

SOLI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA16.5x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does SOLI's PE Ratio compare to its peers?

SOLI PE Ratio vs Peers
The above table shows the PE ratio for SOLI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.1x
KETL Strix Group
17.3x14.1%UK£355.9m
TTG TT Electronics
24.4x25.5%UK£312.7m
ZYT Zytronic
16.3xn/aUK£15.2m
SPSY Spectra Systems
14.3xn/aUK£60.7m
SOLI Solid State
27.1x16.9%UK£97.9m

Price-To-Earnings vs Peers: SOLI is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the peer average (18.1x).


Price to Earnings Ratio vs Industry

How does SOLI's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: SOLI is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the UK Electronic industry average (21.1x)


Price to Earnings Ratio vs Fair Ratio

What is SOLI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOLI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.1x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: SOLI is good value based on its Price-To-Earnings Ratio (27.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).


Share Price vs Fair Value

What is the Fair Price of SOLI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOLI (£11.45) is trading above our estimate of fair value (£8.53)

Significantly Below Fair Value: SOLI is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: SOLI is poor value based on its PEG Ratio (1.6x)


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Future Growth

How is Solid State forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLI's forecast earnings growth (16.9% per year) is above the savings rate (0.9%).

Earnings vs Market: SOLI's earnings (16.9% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: SOLI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOLI's revenue (11.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: SOLI's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SOLI's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Solid State performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOLI has high quality earnings.

Growing Profit Margin: SOLI's current net profit margins (5%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SOLI's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: SOLI's earnings growth over the past year (7%) is below its 5-year average (14% per year).

Earnings vs Industry: SOLI earnings growth over the past year (7%) underperformed the Electronic industry 13.6%.


Return on Equity

High ROE: SOLI's Return on Equity (13.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Solid State's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOLI's short term assets (£33.2M) exceed its short term liabilities (£21.4M).

Long Term Liabilities: SOLI's short term assets (£33.2M) exceed its long term liabilities (£7.0M).


Debt to Equity History and Analysis

Debt Level: SOLI has more cash than its total debt.

Reducing Debt: SOLI's debt to equity ratio has increased from 2.6% to 7.5% over the past 5 years.

Debt Coverage: SOLI's debt is well covered by operating cash flow (478.1%).

Interest Coverage: SOLI's interest payments on its debt are well covered by EBIT (27.2x coverage).


Balance Sheet


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Dividend

What is Solid State current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SOLI's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: SOLI's dividend (1.48%) is low compared to the top 25% of dividend payers in the UK market (5.17%).


Stability and Growth of Payments

Stable Dividend: SOLI's dividends per share have been stable in the past 10 years.

Growing Dividend: SOLI's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.2%), SOLI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.6%), SOLI's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

Gary Marsh (55 yo)

11.25yrs

Tenure

UK£330,000

Compensation

Mr. Gary Stephen Marsh has been the Chief Executive Officer of Solid State plc since March 2011 and also serves as its Executive Director. Mr. Marsh served as Managing Director at Solid State plc. Mr. Mars...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD400.03K) is about average for companies of similar size in the UK market ($USD332.74K).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: SOLI's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Solid State plc's employee growth, exchange listings and data sources


Key Information

  • Name: Solid State plc
  • Ticker: SOLI
  • Exchange: AIM
  • Founded: 1963
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: UK£97.857m
  • Shares outstanding: 8.55m
  • Website: https://www.solidstateplc.com

Number of Employees


Location

  • Solid State plc
  • 2 Ravensbank Business Park
  • Hedera Road
  • Redditch
  • Worcestershire
  • B98 9EY
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.