In This Article:
Solid State plc (LON:SOLI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SOLI, it is a financially-sound company with a a strong history superior dividend payments, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Solid State here.
Flawless balance sheet, good value and pays a dividend
SOLI’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that SOLI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at SOLI’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. SOLI has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. SOLI’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the electronic industry, SOLI is also trading below its peers, relative to earnings generated. This further reaffirms that SOLI is potentially undervalued.
Income investors would also be happy to know that SOLI is a great dividend company, with a current yield standing at 3.9%. SOLI has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Solid State, I’ve put together three fundamental aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for SOLI’s future growth? Take a look at our free research report of analyst consensus for SOLI’s outlook.
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Historical Performance: What has SOLI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SOLI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.