DB:SF5

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Executive Summary

Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SF5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-17.9%

SF5

3.4%

DE IT

2.6%

DE Market


1 Year Return

25.4%

SF5

-9.0%

DE IT

0.5%

DE Market

Return vs Industry: SF5 exceeded the German IT industry which returned -9% over the past year.

Return vs Market: SF5 exceeded the German Market which returned 0.5% over the past year.


Shareholder returns

SF5IndustryMarket
7 Day-17.9%3.4%2.6%
30 Day-2.9%10.3%7.6%
90 Day6.2%-3.6%-1.7%
1 Year28.6%25.4%-8.7%-9.0%2.2%0.5%
3 Year199.4%168.0%69.4%65.6%-4.8%-12.1%
5 Yearn/a217.1%203.3%7.8%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Softcat undervalued compared to its fair value and its price relative to the market?

30.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SF5 (€12.6) is trading above our estimate of fair value (€6.78)

Significantly Below Fair Value: SF5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SF5 is poor value based on its PE Ratio (30.3x) compared to the IT industry average (24.5x).

PE vs Market: SF5 is poor value based on its PE Ratio (30.3x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: SF5 is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: SF5 is overvalued based on its PB Ratio (22.9x) compared to the DE IT industry average (3.7x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SF5's forecast earnings growth (5.5% per year) is above the savings rate (0.2%).

Earnings vs Market: SF5's earnings (5.5% per year) are forecast to grow slower than the German market (21.8% per year).

High Growth Earnings: SF5's earnings are forecast to grow, but not significantly.

Revenue vs Market: SF5's revenue (5.4% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: SF5's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SF5's Return on Equity is forecast to be very high in 3 years time (59.3%).


Next Steps

Past Performance

How has Softcat performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SF5 has a high level of non-cash earnings.

Growing Profit Margin: SF5's current net profit margins (6.8%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: SF5's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: SF5's earnings growth over the past year (17.5%) is below its 5-year average (22.4% per year).

Earnings vs Industry: SF5 earnings growth over the past year (17.5%) exceeded the IT industry 4.8%.


Return on Equity

High ROE: SF5's Return on Equity (75.4%) is considered outstanding.


Next Steps

Financial Health

How is Softcat's financial position?


Financial Position Analysis

Short Term Liabilities: SF5's short term assets (£352.2M) exceed its short term liabilities (£264.9M).

Long Term Liabilities: SF5's short term assets (£352.2M) exceed its long term liabilities (£5.3M).


Debt to Equity History and Analysis

Debt Level: SF5 is debt free.

Reducing Debt: SF5 has not had any debt for past 5 years.

Debt Coverage: SF5 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SF5 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.54%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SF5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SF5's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SF5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SF5's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SF5 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SF5's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Graeme Watt (57yo)

2.17yrs

Tenure

UK£919,518

Compensation

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 T ...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD1.15M) is below average for companies of similar size in the German market ($USD2.39M).

Compensation vs Earnings: Graeme's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Graeme Watt
CEO & Executive Director2.17yrsUK£919.52k0.000070% £1.8k
Graham Charlton
CFO & Executive Director5.25yrsUK£1.74m0.025% £630.9k
Sam Routledge
Chief Technology Officerno datano datano data
Stewart Hayward
Head of Marketing & Bidsno datano datano data
Rebecca Monk
HR Directorno datano datano data
Colin Brown
Managing Director8.42yrsUK£93.36kno data
Luke Thomas
Company Secretaryno datano datano data
Colleen Kapase
VP and Partner of Go To Market Strategy - Incentives & Programs5.92yrsno datano data

5.7yrs

Average Tenure

Experienced Management: SF5's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Graeme Watt
CEO & Executive Director2.17yrsUK£919.52k0.000070% £1.8k
Graham Charlton
CFO & Executive Director5.25yrsUK£1.74m0.025% £630.9k
Karen Slatford
Senior Independent Non-Executive Director0.50yrno datano data
Vinodka Murria
Independent Non-Executive Director0.083yrUK£53.74k0.084% £2.1m
Martin Hellawell
Non-Executive Chairman2.17yrsUK£1.35m2.68% £67.5m
Robyn Perriss
Independent Non-Executive Director0.92yrUK£5.01kno data

1.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SF5's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SF5 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Softcat plc
  • Ticker: SF5
  • Exchange: DB
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£2.247b
  • Listing Market Cap: UK£2.517b
  • Shares outstanding: 197.94m
  • Website: https://www.softcat.com

Number of Employees


Location

  • Softcat plc
  • Solar House
  • Fieldhouse Lane
  • Marlow
  • Buckinghamshire
  • SL7 1LW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCTLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2015
SCTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2015
SF5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 10:00
End of Day Share Price2020/05/29 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.