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Softchoice TSX:SFTC Stock Report

Last Price

CA$24.26

Market Cap

CA$1.5b

7D

13.5%

1Y

54.0%

Updated

05 Jan, 2025

Data

Company Financials +

Softchoice Corporation

TSX:SFTC Stock Report

Market Cap: CA$1.5b

SFTC Stock Overview

Designs, procures, implements, and manages information technology (IT) solutions in Canada and the United States. More details

SFTC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends3/6

Rewards

Trading at 58.1% below our estimate of its fair value

Earnings are forecast to grow 25.41% per year

Trading at good value compared to peers and industry

Risk Analysis

Negative shareholders equity

Has a high level of debt

Unstable dividend track record


My Notes

Capture your thoughts, links and company narrative

Softchoice Corporation Competitors

Evertz Technologies

TSX:ET

CA$972.0m

Kraken Robotics

TSXV:PNG

CA$727.3m

Supreme Electronics

TWSE:8112

NT$30.9b

Chang Wah Electromaterials

TWSE:8070

NT$31.8b

Price History & Performance

Summary of share price highs, lows and changes for Softchoice
Historical stock prices
Current Share PriceCA$24.26
52 Week HighCA$24.45
52 Week LowCA$15.71
Beta-0.039
1 Month Change3.23%
3 Month Change24.16%
1 Year Change54.03%
3 Year Change21.06%
5 Year Changen/a
Change since IPO19.51%

Recent News & Updates

Softchoice's (TSE:SFTC) Conservative Accounting Might Explain Soft Earnings

Nov 15
Softchoice's (TSE:SFTC) Conservative Accounting Might Explain Soft Earnings

Recent updates

Softchoice's (TSE:SFTC) Conservative Accounting Might Explain Soft Earnings

Nov 15
Softchoice's (TSE:SFTC) Conservative Accounting Might Explain Soft Earnings

Some Confidence Is Lacking In Softchoice Corporation's (TSE:SFTC) P/E

Oct 17
Some Confidence Is Lacking In Softchoice Corporation's (TSE:SFTC) P/E

Here's Why We Think Softchoice (TSE:SFTC) Might Deserve Your Attention Today

Sep 09
Here's Why We Think Softchoice (TSE:SFTC) Might Deserve Your Attention Today

Softchoice's (TSE:SFTC) Upcoming Dividend Will Be Larger Than Last Year's

Mar 20
Softchoice's (TSE:SFTC) Upcoming Dividend Will Be Larger Than Last Year's

Why Softchoice's (TSE:SFTC) Earnings Are Better Than They Seem

Mar 12
Why Softchoice's (TSE:SFTC) Earnings Are Better Than They Seem

Softchoice Corporation's (TSE:SFTC) Business Is Yet to Catch Up With Its Share Price

Mar 06
Softchoice Corporation's (TSE:SFTC) Business Is Yet to Catch Up With Its Share Price

Does Softchoice (TSE:SFTC) Have A Healthy Balance Sheet?

Feb 08
Does Softchoice (TSE:SFTC) Have A Healthy Balance Sheet?

Softchoice (TSE:SFTC) Could Become A Multi-Bagger

Jan 11
Softchoice (TSE:SFTC) Could Become A Multi-Bagger

We Ran A Stock Scan For Earnings Growth And Softchoice (TSE:SFTC) Passed With Ease

Nov 03
We Ran A Stock Scan For Earnings Growth And Softchoice (TSE:SFTC) Passed With Ease

The Softchoice Corporation (TSE:SFTC) Analysts Have Been Trimming Their Sales Forecasts

Aug 15
The Softchoice Corporation (TSE:SFTC) Analysts Have Been Trimming Their Sales Forecasts

Earnings Tell The Story For Softchoice Corporation (TSE:SFTC) As Its Stock Soars 32%

Apr 17
Earnings Tell The Story For Softchoice Corporation (TSE:SFTC) As Its Stock Soars 32%

Statutory Profit Doesn't Reflect How Good Softchoice's (TSE:SFTC) Earnings Are

Mar 16
Statutory Profit Doesn't Reflect How Good Softchoice's (TSE:SFTC) Earnings Are

Returns Are Gaining Momentum At Softchoice (TSE:SFTC)

Dec 07
Returns Are Gaining Momentum At Softchoice (TSE:SFTC)

Results: Softchoice Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Aug 16
Results: Softchoice Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

These Return Metrics Don't Make Softchoice (TSE:SFTC) Look Too Strong

Jun 17
These Return Metrics Don't Make Softchoice (TSE:SFTC) Look Too Strong

Shareholder Returns

SFTCCA ElectronicCA Market
7D13.5%2.1%1.2%
1Y54.0%246.8%16.9%

Return vs Industry: SFTC underperformed the Canadian Electronic industry which returned 246.8% over the past year.

Return vs Market: SFTC exceeded the Canadian Market which returned 16.9% over the past year.

Price Volatility

Is SFTC's price volatile compared to industry and market?
SFTC volatility
SFTC Average Weekly Movement5.8%
Electronic Industry Average Movement10.3%
Market Average Movement8.3%
10% most volatile stocks in CA Market17.8%
10% least volatile stocks in CA Market2.9%

Stable Share Price: SFTC has not had significant price volatility in the past 3 months compared to the Canadian market.

Volatility Over Time: SFTC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19892,100Andrew Caprarawww.softchoice.com

Softchoice Corporation designs, procures, implements, and manages information technology (IT) solutions in Canada and the United States. The company offers cloud and data center solutions, such as data center and application modernization; collaboration and digital workplace solutions comprising secure access, and adoption and change management; IT asset management solutions, including software and hardware asset management solutions, and IT procurement services; network and security support solutions. It also provides assessment solutions, such as cloud readiness, security technology, and cloud architecture reviews.

Softchoice Corporation Fundamentals Summary

How do Softchoice's earnings and revenue compare to its market cap?
SFTC fundamental statistics
Market capCA$1.46b
Earnings (TTM)CA$56.58m
Revenue (TTM)CA$1.11b

25.9x

P/E Ratio

1.3x

P/S Ratio

Is SFTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SFTC income statement (TTM)
RevenueUS$769.79m
Cost of RevenueUS$427.56m
Gross ProfitUS$342.23m
Other ExpensesUS$303.06m
EarningsUS$39.17m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)0.65
Gross Margin44.46%
Net Profit Margin5.09%
Debt/Equity Ratio-183.2%

How did SFTC perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

58%

Payout Ratio

Does SFTC pay a reliable dividends?

See SFTC dividend history and benchmarks
When do you need to buy SFTC by to receive an upcoming dividend?
Softchoice dividend dates
Ex Dividend DateDec 31 2024
Dividend Pay DateJan 10 2025
Days until Ex dividend5 days
Days until Dividend pay date5 days

Does SFTC pay a reliable dividends?

See SFTC dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 01:55
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Softchoice Corporation is covered by 19 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Martin TonerATB Capital Markets
Thanos MoschopoulosBMO Capital Markets Equity Research
Stephanie PriceCIBC Capital Markets