Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to develop into a higher value-added electronics components and systems business, as witnessed by the two recent small acquisitions. Post the current hiatus we expect this to drive growth and value creation.

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to develop into a higher value-added electronics components and systems business, as witnessed by the two recent small acquisitions. Post the current hiatus we expect this to drive growth and value creation.

Solid State - Defence contract delay affects expectations

Management’s strategy is to increase Solid State’s internal capabilities, enabling greater product differentiation and value added, particularly in the Systems business. This is expected to increase the addressable market and growth along with offering higher returns, key to the margin target of 12% (FY25 expectation c 8%). Achieving this through organic and inorganic means underpins management’s 20% CAGR target for shareholder returns.

Management’s strategy is to increase Solid State’s internal capabilities, enabling greater product differentiation and value added, particularly in the Systems business. This is expected to increase the addressable market and growth along with offering higher returns, key to the margin target of 12% (FY25 expectation c 8%). Achieving this through organic and inorganic means underpins management’s 20% CAGR target for shareholder returns.

Solid State - H1 trading in line; guidance unchanged

Solid State is developing from a component manufacturer into a value-added electronics partner offering engineered solutions. Management expects this to drive additional growth and margin expansion, particularly in target markets, such as healthcare and defence, underpinning management’s objective for a c 20% CAGR in shareholder returns to 2030.

Solid State is developing from a component manufacturer into a value-added electronics partner offering engineered solutions. Management expects this to drive additional growth and margin expansion, particularly in target markets, such as healthcare and defence, underpinning management’s objective for a c 20% CAGR in shareholder returns to 2030.

Solid State - Record FY24; medium-term targets retained

Fundamental Analyses, Contrarian Cashflows

Contrarian Cashflows

Fundamental Analyses

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<ul><li>Solid State (SOLI) is a British electronics manufacturer and distributor specializing in mission-critical components and systems for industries with high regulatory barriers.</li><li>The founding families still lead the company, owning over 13% of outstanding shares. Since 2010, the CEO has driven annual sales and EPS growth of 18%.</li><li>Despite this strong track record, the shares trade at a normalized 7.3% owner earnings yield and an 11.1 adj. EV/EBIT.</li></ul>

Solid State (SOLI) is a British electronics manufacturer and distributor specializing in mission-critical components and systems for industries with high regulatory barriers.The founding families still lead the company, owning over 13% of outstanding shares. Since 2010, the CEO has driven annual sales and EPS growth of 18%.Despite this strong track record, the shares trade at a normalized 7.3% owner earnings yield and an 11.1 adj. EV/EBIT.

Solid State: Compounding Shareholder Capital in Industries with High Regulatory Barriers to Entry

Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.

Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.

Solid State - Anticipating record adjusted PBT in FY24

United Kingdom

Solid State PLC distributes electronic components for use in the industrial, automotive, mobile phone, computer and military markets of the United Kingdom. The Company also provides technical support to its customers.  The Company has agreements to supply products to nine electronic components manufacturers, mainly into the UK market. ... More

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Solid State PLC (SOLI LN)

Solid State - Defence contract delay affects expectations

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to...

Edison Investment Research

Solid State - H1 trading in line; guidance unchanged

Management’s strategy is to increase Solid State’s internal capabilities, enabling greater product differentiation and value added, particularly in...

Edison Investment Research

Solid State - Record FY24; medium-term targets retained

Solid State is developing from a component manufacturer into a value-added electronics partner offering engineered solutions. Management expects...

Edison Investment Research

Solid State: Compounding Shareholder Capital in Industries with High Regulatory Barriers to Entry

Solid State (SOLI) is a British electronics manufacturer and distributor specializing in mission-critical components and systems for industries...

Contrarian Cashflows

Solid State - Anticipating record adjusted PBT in FY24

Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of...

Edison Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)