Solitron Devices (SODI) AI Stock Analysis

• Market Cap: $35.40M
• Dividend Yield: N/A
• Average Volume (3M): 542.00
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.07
• Revenue Growth: -12.96%
• EPS Growth: -101.68%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.11
• Shares Outstanding: 2,082,553
• 10 Day Avg. Volume: 946
• 30 Day Avg. Volume: 542
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: 13.25
• 1Y Price Target: $17.00
• Price Target Upside: 2.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $17.00 ▲(2.47% Upside)

Solitron Devices faces challenges in profitability and valuation, with a significant recent decline in sales and income. Despite strong financial fundamentals and potential future opportunities, current valuation and recent corporate events weigh on the overall score.

Solitron Devices Business Overview & Revenue Model

Company Description

Solitron Devices, Inc. designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The company offers various bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field effect transistors, field effect transistors, and other related products. It also provides joint army/navy transistors, diodes, and standard military drawings voltage regulators. The company's semiconductor products are used as components of military, commercial, and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems, satellites, and space applications, as well as for non-military, scientific, and industrial applications. It operates in the United States, Canada, Latin America, the Far East, and the Middle East. The company was incorporated in 1959 and is headquartered in West Palm Beach, Florida.

How the Company Makes Money

Solitron Devices generates revenue through the sale of its semiconductor products to various industries, including defense, aerospace, and industrial sectors. The company operates on a business-to-business (B2B) model, supplying its high-reliability components to original equipment manufacturers (OEMs) and government contractors. Key revenue streams include direct sales of semiconductor devices, custom manufacturing services, and long-term contracts with defense and aerospace agencies. Additionally, SODI may benefit from government contracts and partnerships with other technology firms, which can provide stable income and expand its market reach. The company's focus on specialized, high-margin products allows it to maintain competitive pricing while ensuring a strong profit margin.

Solitron Devices Financial Statement Overview

Summary

Solitron Devices has shown solid revenue growth and maintains a healthy balance sheet with effective cost management. However, the significant drop in net income and free cash flow raises concerns about profitability and liquidity.

Income Statement

Solitron Devices has displayed solid growth in revenue over the years, with a notable revenue increase from $12.75M in 2024 to $14.05M in 2025, marking a revenue growth rate of 10.10%. The gross profit margin stands at 28.42% for 2025, indicating effective cost management. However, the net profit margin dropped significantly from the previous year, primarily due to a decrease in net income from $5.80M to $0.82M. The EBIT and EBITDA margins are reasonably healthy at 7.11% and 14.48%, respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a debt-to-equity ratio of 0.22, indicating prudent financial leverage. The equity ratio is robust at 73.18%, suggesting a solid capital structure. Return on equity (ROE) has decreased to 4.56% from a higher base, which indicates a decline in profitability relative to shareholder equity.

Cash Flow

Cash flow analysis shows a positive trajectory in operating cash flow, increasing to $2.40M in 2025. The free cash flow to net income ratio is 0.69, reflecting a reasonable conversion of income to cash. However, free cash flow has decreased compared to the previous year, posing a potential liquidity concern.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.05M	12.76M	6.41M	12.28M	10.53M
Gross Profit	3.99M	3.81M	1.40M	4.80M	3.28M
EBITDA	2.03M	3.70M	-288.00K	4.21M	1.99M
Net Income	815.00K	5.80M	2.41M	3.51M	1.38M
Balance Sheet
Total Assets	24.44M	24.74M	15.10M	14.36M	9.09M
Cash, Cash Equivalents and Short-Term Investments	5.02M	3.12M	4.33M	4.77M	4.03M
Total Debt	3.92M	4.40M	2.76M	2.87M	1.21M
Total Liabilities	6.55M	7.67M	3.84M	3.92M	2.16M
Stockholders Equity	17.88M	17.07M	11.27M	10.44M	6.93M
Cash Flow
Free Cash Flow	560.00K	1.56M	-1.24M	-2.17M	1.60M
Operating Cash Flow	2.40M	1.92M	953.00K	3.33M	1.67M
Investing Cash Flow	-1.75M	-1.04M	-3.49M	-5.89M	-22.00K
Financing Cash Flow	1.23M	-110.00K	-103.00K	2.86M	801.00K

Solitron Devices Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SODI, the sentiment is Negative. The current price of 16.59 is below the 20-day moving average (MA) of 16.84, below the 50-day MA of 16.71, and above the 200-day MA of 15.92, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SODI.

Solitron Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRAM	68 Neutral	$259.74M	151.32	2.76%	―	-11.27%	-9.20%
TRT	65 Neutral	$28.87M	37.80	-0.11%	―	-13.80%	-103.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SODI	61 Neutral	$35.40M	40.46	-0.62%	―	-12.96%	-101.68%
PXLW	55 Neutral	$61.36M	―	-2911.20%	―	-44.05%	-2.33%
GCTS	46 Neutral	$85.47M	―	17.45%	―	28.31%	-239.16%
LEDS	45 Neutral	$20.88M	―	-14.79%	―	485.62%	85.02%

Solitron Devices Corporate Events

Solitron Devices Extends COO’s Employment Agreement

On August 2025, Solitron Devices updated the employment agreement with Mark Matson, its President and COO, extending his term for three years with automatic renewals. His salary is set at $450,000 with potential increases, and he has stock purchase rights and a bonus plan based on company profits. Additionally, the company awarded discretionary bonuses and stock grants to key executives and non-employee directors, recognizing their contributions.

Solitron Devices Reports Q1 2026 Sales Decline

Solitron Devices, Inc. reported a 32% decrease in net sales for the first quarter of fiscal 2026 compared to the same period in fiscal 2025, with net income turning into a loss of $0.34 million. Despite the decline in sales, the company experienced a 94% increase in backlog, reaching $18.26 million, and a 37% rise in net bookings. The company also invested in CBE LLC, which acquired a stake in CrossingBridge Advisors, potentially providing a new revenue stream. Additionally, the U.S. Air Force’s request to double AMRAAM production by 2028, a program Solitron supplies to, could positively impact future operations, pending Congressional approval.