DB:COUD

Stock Analysis Report

Executive Summary

Computacenter plc provides information technology (IT) infrastructure services in the United Kingdom, Germany, France, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Computacenter's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

DB:COUD

3.8%

DE IT

2.6%

DE Market


1 Year Return

n/a

DB:COUD

-14.8%

DE IT

-9.6%

DE Market

No trading data on COUD.

No trading data on COUD.


Share holder returns

COUDIndustryMarket
7 Day-1.8%3.8%2.6%
30 Day7.9%-4.9%-3.0%
90 Day20.8%-6.0%-1.4%
1 Yearn/a-14.4%-14.8%-6.8%-9.6%
3 Yearn/a157.6%151.2%11.0%1.5%
5 Yearn/a299.8%282.5%25.6%8.2%

Price Volatility Vs. Market

How volatile is Computacenter's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Computacenter undervalued based on future cash flows and its price relative to the stock market?

20.15x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Computacenter's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Computacenter's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Computacenter is good value based on earnings compared to the DE IT industry average.

Computacenter is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Computacenter is poor value based on expected growth next year.


Price Based on Value of Assets

Computacenter is good value based on assets compared to the DE IT industry average.


Next Steps

Future Growth

How is Computacenter expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Computacenter's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Computacenter's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

Computacenter's revenue growth is positive but not above the Germany market average.

Computacenter's earnings growth is positive but not above the Germany market average.

Computacenter's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Computacenter is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Computacenter performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Computacenter's year on year earnings growth rate has been positive over the past 5 years.

Computacenter's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Computacenter's 1-year earnings growth is negative, it can't be compared to the DE IT industry average.


Return on Equity

Computacenter has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Computacenter used its assets less efficiently than the DE IT industry average last year based on Return on Assets.


Return on Capital Employed

Computacenter's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Computacenter's financial position?


Financial Position Analysis

Computacenter is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Computacenter's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Computacenter's level of debt (30%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (2.2% vs 30% today).

Debt is well covered by operating cash flow (85.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 139.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 12.3x debt.


Next Steps

Dividend

What is Computacenter's current dividend yield, its reliability and sustainability?

2.42%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Computacenter's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Computacenter's dividend is below the markets top 25% of dividend payers in Germany (4.22%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Computacenter's salary, the management and board of directors tenure and is there insider trading?

21.4yrs

Average management tenure


CEO

Mike Norris (58yo)

24.7yrs

Tenure

UK£2,029,800

Compensation

Mr. Mike J. Norris has been the Chief Executive Officer of Computacenter Plc since December 1994. Mr. Norris has responsibility for all the day-to-day activities and reporting channels across Computacenter ...


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in Germany.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

21.4yrs

Average Tenure

66yo

Average Age

The average tenure for the Computacenter management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.3yrs

Average Tenure

62.5yo

Average Age

The average tenure for the Computacenter board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£23,41110 Dec 18
F. Conophy
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares2,185
Max PriceUK£10.71
BuyUK£760,73313 Nov 18
Gregory Lock
EntityIndividual
Shares57,000
Max PriceUK£13.35
BuyUK£594,89510 Oct 18
Gregory Lock
EntityIndividual
Shares43,000
Max PriceUK£13.84

Ownership Breakdown


Management Team

  • Philip Hulme (71yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£50.00k
  • Mike Norris (58yo)

    CEO & Executive Director

    • Tenure: 24.7yrs
    • Compensation: UK£2.03m
  • Tony Conophy (61yo)

    Group Finance Director & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£1.19m
  • Peter Ogden (72yo)

    Co-Founder & Non-Executive Director

    • Tenure: 38.6yrs
    • Compensation: UK£50.00k
  • Barry Hoffman

    Group Human Resources Director

    • Tenure: 0.0yrs
  • Mark Slaven

    Group Chief Information Officer & Group Information Services Director

    • Tenure: 0.0yrs
  • Kevin James

    Group Chief Commercial Officer

    • Tenure: 0.0yrs
  • Reiner Louis

    Managing Director of Germany

    • Tenure: 6.6yrs
  • Fraser Phillips

    Head of Group Legal & Contracting

    • Tenure: 6.6yrs
  • Neil Hall

    Managing Director of UK & Ireland

    • Tenure: 1.8yrs

Board Members

  • Philip Hulme (71yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£50.00k
  • Mike Norris (58yo)

    CEO & Executive Director

    • Tenure: 24.7yrs
    • Compensation: UK£2.03m
  • Peter Ryan (58yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£44.20k
  • Tony Conophy (61yo)

    Group Finance Director & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£1.19m
  • Peter Ogden (72yo)

    Co-Founder & Non-Executive Director

    • Tenure: 38.6yrs
    • Compensation: UK£50.00k
  • Rene Haas

    Non-Executive Director

    • Tenure: 0.0yrs
  • Minnow Powell (65yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£66.00k
  • Ljiljana Mitic (50yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Ros Rivaz (64yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£61.00k

Company Information

Computacenter plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Computacenter plc
  • Ticker: COUD
  • Exchange: DB
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£1.622b
  • Listing Market Cap: UK£1.775b
  • Shares outstanding: 112.82m
  • Website: https://www.computacenter.com

Number of Employees


Location

  • Computacenter plc
  • Hatfield Avenue
  • Hatfield Business Park
  • Hatfield
  • Hertfordshire
  • AL10 9TW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCCLSE (London Stock Exchange)YesA Ordinary SharesGBGBPMay 1998
CCCLBATS-CHIXE (BATS 'Chi-X Europe')YesA Ordinary SharesGBGBPMay 1998
COUDDB (Deutsche Boerse AG)YesA Ordinary SharesDEEURMay 1998
COUDBST (Boerse-Stuttgart)YesA Ordinary SharesDEEURMay 1998

Biography

Computacenter plc provides information technology (IT) infrastructure services in the United Kingdom, Germany, France, and internationally. The company offers endpoint, infrastructure, cyber security, info ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 21:35
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.