Solid State plc

AIM:SOLI Stock Report

Market Cap: UK£77.0m

Solid State Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (£1.28) is trading below our estimate of fair value (£1.62)

Significantly Below Fair Value: SOLI is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As SOLI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SOLI. This is calculated by dividing SOLI's market cap by their current earnings.
What is SOLI's PE Ratio?
PE Ratio8.2x
EarningsUK£8.87m
Market CapUK£77.01m

Price to Earnings Ratio vs Peers

How does SOLI's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
KETL Strix Group
18.8x43.2%UK£140.7m
SDI SDI Group
14.3xn/aUK£60.2m
SPSY Spectra Systems
22.8x2.6%UK£120.6m
SNX Synectics
17.6xn/aUK£53.2m
SOLI Solid State
8.2x-94.5%UK£77.0m

Price-To-Earnings vs Peers: SOLI is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SOLI 8.2xIndustry Avg. 17.7xNo. of Companies18PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SOLI is good value based on its Price-To-Earnings Ratio (8.2x) compared to the European Electronic industry average (17.7x).

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 Ratio8.2x
Fair PE Ratio2.5x

Price-To-Earnings vs Fair Ratio: SOLI is expensive based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (2.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SOLI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.28
UK£2.18
+70.6%
17.2%UK£2.55UK£1.80n/a2
Aug ’25UK£2.81
UK£3.27
+16.4%
0.9%UK£3.30UK£3.24n/a2
Jul ’25UK£2.98
UK£3.27
+9.9%
0.9%UK£3.30UK£3.24n/a2
Jun ’25UK£2.99
UK£3.27
+9.4%
0.9%UK£3.30UK£3.24n/a2
May ’25UK£2.75
UK£3.27
+18.9%
0.9%UK£3.30UK£3.24n/a2
Apr ’25UK£2.69
UK£3.27
+21.6%
0.9%UK£3.30UK£3.24n/a2
Mar ’25UK£2.49
UK£3.27
+31.3%
0.9%UK£3.30UK£3.24n/a2
Feb ’25UK£2.48
UK£3.27
+31.9%
0.9%UK£3.30UK£3.24n/a2
Jan ’25UK£2.77
UK£3.17
+14.4%
2.2%UK£3.24UK£3.10n/a2
Dec ’24UK£2.76
UK£3.17
+14.9%
2.2%UK£3.24UK£3.10n/a2
Nov ’24UK£2.39
UK£3.17
+32.6%
2.2%UK£3.24UK£3.10UK£2.352
Oct ’24UK£2.37
UK£3.09
+30.2%
0.5%UK£3.10UK£3.07UK£2.352
Sep ’24UK£2.62
UK£3.09
+17.7%
0.5%UK£3.10UK£3.07UK£2.732
Aug ’24UK£2.65
UK£3.09
+16.4%
0.5%UK£3.10UK£3.07UK£2.812
Jul ’24UK£2.38
UK£3.09
+29.6%
0.5%UK£3.10UK£3.07UK£2.982
Jun ’24UK£2.22
UK£3.09
+39.0%
0.5%UK£3.10UK£3.07UK£2.992
May ’24UK£2.26
UK£3.09
+36.5%
0.5%UK£3.10UK£3.07UK£2.752
Apr ’24UK£2.16
UK£3.09
+42.8%
0.5%UK£3.10UK£3.07UK£2.692
Mar ’24UK£2.59
UK£3.09
+19.3%
0.5%UK£3.10UK£3.07UK£2.492
Feb ’24UK£2.65
UK£3.09
+16.4%
0.5%UK£3.10UK£3.07UK£2.482
Jan ’24UK£2.82
UK£3.09
+9.4%
0.5%UK£3.10UK£3.07UK£2.772
Dec ’23UK£2.61
UK£2.94
+12.5%
4.6%UK£3.07UK£2.80UK£2.762
Nov ’23UK£2.29
UK£2.94
+28.2%
4.6%UK£3.07UK£2.80UK£2.392

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

Discover undervalued companies

Cicor Technologies

CHF 183.5m

Develops and manufactures electronic components, devices, and systems worldwide.

CICNZ

CHF 57.00

7D

-3.6%

1Y

29.5%

Corsair Gaming

US$690.0m

Designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific.

0A95

US$6.59

7D

-6.1%

1Y

-47.3%

Midwich Group

UK£293.9m

Distributes audio visual (AV) solutions to trade customers in the United Kingdom, Ireland, rest of Europe, the Middle East, Africa, the Asia Pacific, and North America.

MIDW

UK£2.90

7D

-1.0%

1Y

-24.7%