AIM:SOLI

Stock Analysis Report

Executive Summary

Solid State plc manufactures and sells electronic equipment in the United Kingdom, rest of Europe, Asia, North America, and internationally.

Rewards

PE ratio (13.4x) is below the UK market (17.6x)

Revenue is forecast to grow 4.35% per year

Earnings grew by 54.5% over the past year

Pays a reliable dividend of 2.2%

Risk Analysis

Earnings are forecast to decline by an average of -4.2% per year for the next 3 years

Does not have a meaningful market cap (£48M)



Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Solid State's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOLI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

SOLI

0.8%

GB Electronic

2.3%

GB Market


1 Year Return

84.3%

SOLI

31.0%

GB Electronic

10.7%

GB Market

Return vs Industry: SOLI exceeded the UK Electronic industry which returned 31% over the past year.

Return vs Market: SOLI exceeded the UK Market which returned 10.7% over the past year.


Shareholder returns

SOLIIndustryMarket
7 Day2.7%0.8%2.3%
30 Day19.2%5.5%2.3%
90 Day22.3%6.4%2.5%
1 Year90.2%84.3%33.2%31.0%16.5%10.7%
3 Year46.4%33.5%69.5%61.6%21.3%5.9%
5 Year-16.8%-27.0%122.4%103.8%41.1%8.7%

Price Volatility Vs. Market

How volatile is Solid State's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Solid State undervalued compared to its fair value and its price relative to the market?

13.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOLI (£5.68) is trading above our estimate of fair value (£5.34)

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


Price To Earnings Ratio

PE vs Industry: SOLI is good value based on its PE Ratio (13.4x) compared to the Electronic industry average (21.5x).

PE vs Market: SOLI is good value based on its PE Ratio (13.4x) compared to the UK market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: SOLI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SOLI is overvalued based on its PB Ratio (2.2x) compared to the GB Electronic industry average (2.2x).


Next Steps

Future Growth

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

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLI's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: SOLI's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: SOLI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SOLI's revenue (4.4% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: SOLI's revenue (4.4% 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


Next Steps

Past Performance

How has Solid State performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLI has high quality earnings.

Growing Profit Margin: SOLI's current net profit margins (5.4%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SOLI's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: SOLI's earnings growth over the past year (54.5%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: SOLI earnings growth over the past year (54.5%) exceeded the Electronic industry -16.7%.


Return on Equity

High ROE: SOLI's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Solid State's financial position?


Financial Position Analysis

Short Term Liabilities: SOLI's short term assets (£22.4M) exceed its short term liabilities (£11.1M).

Long Term Liabilities: SOLI's short term assets (£22.4M) exceed its long term liabilities (£1.7M).


Debt to Equity History and Analysis

Debt Level: SOLI's debt to equity ratio (4.7%) is considered satisfactory.

Reducing Debt: SOLI's debt to equity ratio has reduced from 9.6% to 4.7% over the past 5 years.

Debt Coverage: SOLI's debt is well covered by operating cash flow (604%).

Interest Coverage: SOLI's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet

Inventory Level: SOLI has a high level of physical assets or inventory.

Debt Coverage by Assets: SOLI's debt is covered by short term assets (assets are 22.4x debt).


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Solid State before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%1.9%markettop25%5.1%industryaverage1.5%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: SOLI's dividend (2.2%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: SOLI's dividend (2.2%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), SOLI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Solid State's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average board tenure


CEO

Gary Marsh (53yo)

8.8yrs

Tenure

UK£267,000

Compensation

Mr. Gary Stephen Marsh has been the Chief Executive Officer of Solid State plc since 2011. Mr. Marsh served as Managing Director at Solid State plc. Mr. Marsh joined the Solid State plc in 1986. He has hel ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD356.07K) is about average for companies of similar size in the UK market ($USD333.40K).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Board Age and Tenure

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: SOLI's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£20,02003 Jul 19
Nigel Rogers
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,400
Max PriceUK£4.55
BuyUK£19,62928 Mar 19
Gary Marsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,125
Max PriceUK£3.83
SellUK£19,91628 Mar 19
Gary Marsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,200
Max PriceUK£3.83

Ownership Breakdown

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


Management Team

  • Matthew Richards (56yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£253.00k
  • Peter Haining (63yo)

    Company Secretary & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£25.00k
  • Gary Marsh (53yo)

    CEO & Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£267.00k
  • John Macmichael (58yo)

    Executive Director

    • Tenure: 9.7yrs
    • Compensation: UK£254.00k
  • Peter James (40yo)

    Group Finance Director & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£230.00k

Board Members

  • Nigel Rogers (58yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Matthew Richards (56yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£253.00k
  • Peter Haining (63yo)

    Company Secretary & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£25.00k
  • Gary Marsh (53yo)

    CEO & Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£267.00k
  • John Macmichael (58yo)

    Executive Director

    • Tenure: 9.7yrs
    • Compensation: UK£254.00k
  • Tony Frere (72yo)

    Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: UK£63.00k
  • Peter James (40yo)

    Group Finance Director & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£230.00k

Company Information

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


Key Information

  • Name: Solid State plc
  • Ticker: SOLI
  • Exchange: AIM
  • Founded: 1963
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£48.257m
  • Shares outstanding: 8.50m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLIAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1996

Biography

Solid State plc manufactures and sells electronic equipment in the United Kingdom, rest of Europe, Asia, North America, and internationally. It is involved in the design, development, and supply of rugged  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 20:34
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.