LSE:CCC

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

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


Market Performance


7 Day Return

4.0%

CCC

4.5%

GB IT

-0.5%

GB Market


1 Year Return

23.7%

CCC

17.3%

GB IT

3.7%

GB Market

Return vs Industry: CCC exceeded the UK IT industry which returned 17.3% over the past year.

Return vs Market: CCC exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

CCCIndustryMarket
7 Day4.0%4.5%-0.5%
30 Day9.3%5.8%1.4%
90 Day0.9%-0.5%3.1%
1 Year26.8%23.7%19.9%17.3%9.2%3.7%
3 Year110.9%96.4%93.9%79.4%23.5%7.8%
5 Year159.0%104.7%77.6%61.1%34.4%3.8%

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 compared to its fair value and its price relative to the market?

19.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCC (£14.2) is trading above our estimate of fair value (£12.82)

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


Price To Earnings Ratio

PE vs Industry: CCC is good value based on its PE Ratio (19.5x) compared to the IT industry average (25.9x).

PE vs Market: CCC is poor value based on its PE Ratio (19.5x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: CCC is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CCC is overvalued based on its PB Ratio (3.5x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCC's forecast earnings growth (5.8% per year) is above the savings rate (1.2%).

Earnings vs Market: CCC's earnings (5.8% per year) are forecast to grow slower than the UK market (12.7% per year).

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

Revenue vs Market: CCC's revenue (3% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: CCC's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCC's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Computacenter performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: CCC's current net profit margins (1.7%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: CCC's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: CCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CCC had negative earnings growth (-2%) over the past year, making it difficult to compare to the IT industry average (7.3%).


Return on Equity

High ROE: CCC's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Computacenter's financial position?


Financial Position Analysis

Short Term Liabilities: CCC's short term assets (£1.3B) exceeds its short term liabilities (£1.0B)

Long Term Liabilities: CCC's short term assets (1.3B) exceeds its long term liabilities (204.9M)


Debt to Equity History and Analysis

Debt Level: CCC's debt to equity ratio (25.7%) is considered satisfactory

Reducing Debt: CCC's debt to equity ratio has increased from 1.8% to 25.7% over the past 5 years.

Debt Coverage: CCC's debt is well covered by operating cash flow (88.6%).

Interest Coverage: CCC's interest payments on its debt are well covered by EBIT (32.4x coverage).


Balance Sheet

Inventory Level: CCC has a high level of physical assets or inventory.

Debt Coverage by Assets: CCC's debt is covered by short term assets (assets are 10.8x debt).


Next Steps

Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.9%markettop25%5.3%industryaverage2.4%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: CCC's dividend (2.13%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: CCC's dividend (2.13%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: CCC's dividends per share have been stable in the past 10 years.

Growing Dividend: CCC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.5%), CCC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCC's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

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

21.7yrs

Average management tenure


CEO

Mike Norris (58yo)

24.9yrs

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

Compensation vs Market: Mike's total compensation ($USD2.61M) is above average for companies of similar size in the UK market ($USD1.82M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

21.7yrs

Average Tenure

66yo

Average Age

Experienced Management: CCC's management team is seasoned and experienced (21.7 years average tenure).


Board Age and Tenure

1.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CCC's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£20,93610 Dec 18
F. Conophy
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares2,185
Max PriceUK£9.58

Ownership Breakdown

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


Management Team

  • Philip Hulme (71yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£50.00k
  • Mike Norris (58yo)

    CEO & Executive Director

    • Tenure: 24.9yrs
    • Compensation: UK£2.03m
  • Tony Conophy (61yo)

    Group Finance Director & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.19m
  • Peter Ogden (72yo)

    Co-Founder & Non-Executive Director

    • Tenure: 38.8yrs
    • Compensation: UK£50.00k
  • Barry Hoffman

    Group Human Resources Director

    • Tenure: 0yrs
  • Mark Slaven

    Group Chief Information Officer & Group Information Services Director

    • Tenure: 0yrs
  • Kevin James

    Group Chief Commercial Officer

    • Tenure: 0yrs
  • Reiner Louis

    Managing Director of Germany

    • Tenure: 6.8yrs
  • Fraser Phillips

    Head of Group Legal & Contracting

    • Tenure: 6.8yrs
  • Neil Hall

    Managing Director of UK & Ireland

    • Tenure: 2.1yrs

Board Members

  • Philip Hulme (71yo)

    Co-Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£50.00k
  • Mike Norris (58yo)

    CEO & Executive Director

    • Tenure: 24.9yrs
    • Compensation: UK£2.03m
  • Peter Ryan (58yo)

    Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£44.20k
  • Tony Conophy (61yo)

    Group Finance Director & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.19m
  • Peter Ogden (72yo)

    Co-Founder & Non-Executive Director

    • Tenure: 38.8yrs
    • Compensation: UK£50.00k
  • Rene Haas

    Non-Executive Director

    • Tenure: 0.3yrs
  • Minnow Powell (65yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£66.00k
  • Ljiljana Mitic (50yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Ros Rivaz (64yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£61.00k

Company Information

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


Key Information

  • Name: Computacenter plc
  • Ticker: CCC
  • Exchange: LSE
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£1.602b
  • 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

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 Analysis2019/11/11 20:48
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
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.