Loading...

Softcat

DB:SF5
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SF5
DB
£2B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The last earnings update was 65 days ago. More info.


Add to Portfolio Compare Print
SF5 Share Price and Events
7 Day Returns
0.8%
DB:SF5
6.7%
DE IT
-0.6%
DE Market
1 Year Returns
28.7%
DB:SF5
15.5%
DE IT
-10.8%
DE Market
SF5 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Softcat (SF5) 0.8% 4.9% 23.2% 28.7% 144.1% -
DE IT 6.7% 19.5% 28.7% 15.5% 171% 269.8%
DE Market -0.6% -3.3% 2.3% -10.8% 8% 8%
1 Year Return vs Industry and Market
  • SF5 outperformed the IT industry which returned 15.5% over the past year.
  • SF5 outperformed the Market in Germany which returned -10.8% over the past year.
Price Volatility
SF5
Industry
5yr Volatility vs Market

SF5 Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Softcat to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Softcat.

DB:SF5 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SF5
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.05 (1 + (1- 19%) (0%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.033 * 6.65%)
7.1%

Discounted Cash Flow Calculation for DB:SF5 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Softcat is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:SF5 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.1%)
2019 60.67 Analyst x3 56.65
2020 65.60 Analyst x4 57.19
2021 69.80 Analyst x4 56.82
2022 73.40 Analyst x2 55.79
2023 78.60 Analyst x2 55.78
2024 81.92 Est @ 4.22% 54.28
2025 84.39 Est @ 3.02% 52.22
2026 86.24 Est @ 2.18% 49.82
2027 87.62 Est @ 1.6% 47.26
2028 88.66 Est @ 1.19% 44.65
Present value of next 10 years cash flows £530.47
DB:SF5 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £88.66 × (1 + 0.23%) ÷ (7.1% – 0.23%)
£1,293.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,293.26 ÷ (1 + 7.1%)10
£651.38
DB:SF5 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £530.47 + £651.38
£1,181.86
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,181.86 / 197.45
£5.99
DB:SF5 Discount to Share Price
Calculation Result
Value per share (EUR) From above. €6.65
Current discount Discount to share price of €10.37
= -1 x (€10.37 - €6.65) / €6.65
-55.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Softcat is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Softcat's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Softcat's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SF5 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in GBP £0.32
LSE:SCT Share Price ** LSE (2019-05-23) in GBP £9.33
Germany IT Industry PE Ratio Median Figure of 20 Publicly-Listed IT Companies 26.35x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Softcat.

DB:SF5 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SCT Share Price ÷ EPS (both in GBP)

= 9.33 ÷ 0.32

29.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Softcat is overvalued based on earnings compared to the DE IT industry average.
  • Softcat is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Softcat's expected growth come at a high price?
Raw Data
DB:SF5 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
4.8%per year
Germany IT Industry PEG Ratio Median Figure of 13 Publicly-Listed IT Companies 1.5x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

DB:SF5 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.23x ÷ 4.8%

6.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Softcat is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Softcat's assets?
Raw Data
DB:SF5 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in GBP £0.41
LSE:SCT Share Price * LSE (2019-05-23) in GBP £9.33
Germany IT Industry PB Ratio Median Figure of 25 Publicly-Listed IT Companies 4x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:SF5 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SCT Share Price ÷ Book Value per Share (both in GBP)

= 9.33 ÷ 0.41

22.49x

* Primary Listing of Softcat.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Softcat is overvalued based on assets compared to the DE IT industry average.
X
Value checks
We assess Softcat's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Softcat has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SF5 Future Performance

 How is Softcat expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Softcat expected to grow at an attractive rate?
  • Softcat's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Softcat's earnings growth is positive but not above the Germany market average.
  • Softcat's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SF5 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SF5 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 4.8%
DB:SF5 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 10.8%
Germany IT Industry Earnings Growth Rate Market Cap Weighted Average 24%
Germany IT Industry Revenue Growth Rate Market Cap Weighted Average 15.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SF5 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SF5 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-07-31 1,806 74 78 1
2022-07-31 1,662 70 74 1
2021-07-31 1,311 71 71 4
2020-07-31 1,209 67 67 4
2019-07-31 1,110 62 64 4
DB:SF5 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-01-31 1,157 65 63
2018-10-31 1,120 61 59
2018-07-31 1,082 57 55
2018-04-30 890 49 49
2018-01-31 812 41 43
2017-10-31 822 41 41
2017-07-31 832 41 40
2017-04-30 795 36 39
2017-01-31 757 32 38
2016-10-31 715 31 36
2016-07-31 672 30 33
2016-04-30 648 43 31

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Softcat's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Softcat's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SF5 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Softcat Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SF5 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-07-31 0.39 0.39 0.39 1.00
2022-07-31 0.37 0.37 0.37 1.00
2021-07-31 0.36 0.37 0.35 3.00
2020-07-31 0.34 0.34 0.33 3.00
2019-07-31 0.32 0.33 0.32 3.00
DB:SF5 Past Financials Data
Date (Data in GBP Millions) EPS *
2019-01-31 0.32
2018-10-31 0.30
2018-07-31 0.28
2018-04-30 0.25
2018-01-31 0.22
2017-10-31 0.21
2017-07-31 0.20
2017-04-30 0.20
2017-01-31 0.19
2016-10-31 0.18
2016-07-31 0.17
2016-04-30 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Softcat is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Softcat's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Softcat has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SF5 Past Performance

  How has Softcat performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Softcat's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Softcat's year on year earnings growth rate has been positive over the past 5 years.
  • Softcat's 1-year earnings growth exceeds its 5-year average (47.3% vs 19.6%)
  • Softcat's earnings growth has exceeded the DE IT industry average in the past year (47.3% vs 16.2%).
Earnings and Revenue History
Softcat's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Softcat Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SF5 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 1,157.34 63.02 116.94
2018-10-31 1,119.51 59.02 111.89
2018-07-31 1,081.68 55.01 106.84
2018-04-30 889.74 48.90 101.50
2018-01-31 812.34 42.80 96.15
2017-10-31 822.41 41.45 90.97
2017-07-31 832.49 40.11 85.78
2017-04-30 794.85 39.04 84.84
2017-01-31 757.21 37.97 83.90
2016-10-31 714.78 35.56 81.05
2016-07-31 672.35 33.16 78.20
2016-04-30 648.10 31.33 73.17
2016-01-31 623.86 29.50 68.15
2015-10-31 609.97 30.31 65.49
2015-07-31 596.08 31.12 62.84
2014-07-31 504.80 27.35 52.99
2013-07-31 395.76 20.59 43.04
2012-07-31 304.06 17.20 33.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Softcat made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Softcat used its assets more efficiently than the DE IT industry average last year based on Return on Assets.
  • Softcat has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Softcat's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Softcat has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SF5 Health

 How is Softcat's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Softcat's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Softcat is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Softcat has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Softcat's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Softcat has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Softcat Company Filings, last reported 3 months ago.

DB:SF5 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 81.95 0.00 52.77
2018-10-31 81.95 0.00 52.77
2018-07-31 100.82 0.00 72.83
2018-04-30 100.82 0.00 72.83
2018-01-31 70.69 0.00 43.32
2017-10-31 70.69 0.00 43.32
2017-07-31 88.42 0.00 61.64
2017-04-30 88.42 0.00 61.64
2017-01-31 69.75 0.00 46.62
2016-10-31 69.75 0.00 46.62
2016-07-31 87.36 0.00 62.36
2016-04-30 87.36 0.00 62.36
2016-01-31 68.96 0.00 54.88
2015-10-31 68.96 0.00 54.88
2015-07-31 95.82 0.00 74.64
2014-07-31 72.30 0.00 37.72
2013-07-31 48.38 0.00 8.68
2012-07-31 41.28 2.18 12.28
  • Softcat has no debt.
  • Softcat had no debt 5 years ago.
  • Softcat has no debt, it does not need to be covered by operating cash flow.
  • Softcat has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Softcat's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Softcat has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SF5 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.04%
Current annual income from Softcat dividends. Estimated to be 2.25% next year.
If you bought €2,000 of Softcat shares you are expected to receive €61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Softcat's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • Softcat's dividend is below the markets top 25% of dividend payers in Germany (3.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SF5 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Germany IT Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 0.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SF5 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-07-31 0.18 1.00
2022-07-31 0.17 1.00
2021-07-31 0.23 5.00
2020-07-31 0.21 5.00
2019-07-31 0.20 5.00
DB:SF5 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.284 3.234
2018-12-06 0.272 4.011
2017-11-03 0.225 3.453
2017-10-18 0.225 4.423
2016-12-08 0.072 1.948
2016-03-17 0.034 1.051

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Softcat has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Softcat only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Softcat's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Softcat's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Softcat afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Softcat has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SF5 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Graeme Watt
COMPENSATION £605,539
AGE 56
TENURE AS CEO 1.1 years
CEO Bio

Mr. Graeme A. Watt has been the Chief Executive Officer and Director of Softcat plc since April 1, 2018. Mr. Watt serves as the President for EMEA Operations at Tenva TS Holdings Limited (formerly, Avnet Technology Solutions UK) at Avnet, Inc. He joined Avnet Technology Solutions in July 2010. Mr. Watt served as Corporate Vice President\Vice President of Avnet Inc. since December 2011. Mr. Watt served as the President of EMEA at Avnet Technology Solutions S.A. He has been the President of EMEA at Avnet Technology Solutions, Inc. since July 2010. He is responsible for the strategic direction and profitable growth of Avnet's value-added IT solutions distribution business throughout the region. He has more than 25 years of experience in the IT distribution industry. He served as Senior Vice President of EMEA at Tech Data Corporation and Advanced and Specialist Solutions. He served as President of Worldwide Distribution at Bell Microproducts Inc. since May 2008 and served as its Unit President since April 2004. He joined Bell Micro in April 2004. Since May 2008, he was responsible for purchasing and integrating two significant acquisitions. He served as President of European divisions of Bell Microproducts Inc., from April 2004 to May 2008 and had responsibility for its UK based Ideal Hardware, Bell Microproducts European divisions and Bell Microproducts Inc.'s expansion program in the EMEA region. Mr. Watt served as President of Europe of Tech Data Corp. from August 2000 to October 8, 2003. He joined Tech Data Corp., (via First Software) in January 1988 as Financial Controller for the United Kingdom and Ireland and served as its Managing Director since 1995. At Tech Data, he served various positions including Regional Director of the Northern Region and Finance Director. Mr. Watt served as Managing Director UK & Ireland of Tech Data's Computer 2000 Group since January 2000. He served as President of Tech Data Europe GmbH (alternate name: Tech Data EMEA), where he was responsible for many developments, including the acquisition of three companies, the implementation of major restructuring programs, the development of a centralized purchasing organization, and the expansion of e-commerce capabilities. He served at Arthur Young for two years as a Chartered Accountant. He is a qualified Chartered Accountant. Mr. Watt holds a Bachelor of Sciences Degree in Biological Science and Physiology from Edinburgh University.

CEO Compensation
  • Insufficient data for Graeme to compare compensation growth.
  • Graeme's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Softcat management team in years:

4.8
Average Tenure
  • The tenure for the Softcat management team is about average.
Management Team

Graeme Watt

TITLE
CEO & Executive Director
COMPENSATION
£606K
AGE
56
TENURE
1.1 yrs

Graham Charlton

TITLE
CFO & Executive Director
COMPENSATION
£448K
TENURE
4.3 yrs

Sam Routledge

TITLE
Chief Technology Officer

Doug Fawell

TITLE
Chief Information Officer

Stewart Hayward

TITLE
Head of Marketing & Bids

Rebecca Monk

TITLE
HR Director

Colin Brown

TITLE
Managing Director
COMPENSATION
£93K
TENURE
7.3 yrs

Winifred Chime

TITLE
Company Secretary

Colleen Kapase

TITLE
VP and Partner of Go To Market Strategy - Incentives & Programs
TENURE
4.8 yrs

Richard Lecoutre

TITLE
Finance Director
COMPENSATION
£105K
TENURE
6 yrs
Board of Directors Tenure

Average tenure and age of the Softcat board of directors in years:

3.5
Average Tenure
56.5
Average Age
  • The tenure for the Softcat board of directors is about average.
Board of Directors

Martin Hellawell

TITLE
Non-Executive Chairman
COMPENSATION
£584K
TENURE
1.1 yrs

Graeme Watt

TITLE
CEO & Executive Director
COMPENSATION
£606K
AGE
56
TENURE
1.1 yrs

Graham Charlton

TITLE
CFO & Executive Director
COMPENSATION
£448K
TENURE
4.2 yrs

Lee Ginsberg

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£64K
AGE
60
TENURE
3.7 yrs

Peter Ventress

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
AGE
57
TENURE
3.6 yrs

Vin Murria

TITLE
Independent Non-Executive Director
COMPENSATION
£48K
AGE
55
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • Softcat insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Mar 19 Sell Martin Hellawell Individual 21. Mar 19 21. Mar 19 -212,708 €9.67 €-2,057,316
21. Mar 19 Sell Graham Charlton Individual 19. Mar 19 19. Mar 19 -46,000 €10.09 €-463,946
X
Management checks
We assess Softcat's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Softcat has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SF5 News

Simply Wall St News

SF5 Company Info

Description

Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, designs, procures, implements, and manages technology for businesses and public sector organizations, such as software licensing, workplace technology, networking, security, and cloud and datacenter. It also offers asset management, business intelligence and analytics, collaboration, commodity sourcing, end user computing and mobility, and general data protection regulation solutions, as well as consulting, design, and professional services. Softcat plc was founded in 1993 and is headquartered in Marlow, the United Kingdom.

Details
Name: Softcat plc
SF5
Exchange: DB
Founded: 1993
£2,089,686,617
197,453,146
Website: http://www.softcat.com
Address: Softcat plc
Solar House,
Fieldhouse Lane,
Marlow,
Buckinghamshire, SL7 1LW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SCT Ordinary Shares London Stock Exchange GB GBP 13. Nov 2015
DB SF5 Ordinary Shares Deutsche Boerse AG DE EUR 13. Nov 2015
Number of employees
Current staff
Staff numbers
1,315
Softcat employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:24
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/03/19
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.