LSE:CCC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding track record with excellent balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

CCC

-5.3%

GB IT

0.08%

GB Market


1 Year Return

84.4%

CCC

10.2%

GB IT

-13.9%

GB Market

Return vs Industry: CCC exceeded the UK IT industry which returned 10% over the past year.

Return vs Market: CCC exceeded the UK Market which returned -14% over the past year.


Shareholder returns

CCCIndustryMarket
7 Day0.7%-5.3%0.08%
30 Day16.1%-3.9%0.4%
90 Day40.8%6.5%-1.5%
1 Year84.4%84.4%11.4%10.2%-10.4%-13.9%
3 Year148.4%137.3%68.0%58.5%-4.3%-16.0%
5 Year238.0%206.1%145.2%126.5%23.0%-4.6%

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?

22.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCC (£23.2) is trading above our estimate of fair value (£13.65)

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 (22.6x) compared to the GB IT industry average (36.3x).

PE vs Market: CCC is poor value based on its PE Ratio (22.6x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CCC is poor value based on its PEG Ratio (11.6x)


Price to Book Ratio

PB vs Industry: CCC is overvalued based on its PB Ratio (4.6x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

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

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCC's forecast earnings growth (1.9% per year) is above the savings rate (1.2%).

Earnings vs Market: CCC's earnings (1.9% per year) are forecast to grow slower than the UK market (23.7% per year).

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

Revenue vs Market: CCC's revenue (3.5% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: CCC's revenue (3.5% 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 (16.5%).


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 high quality earnings.

Growing Profit Margin: CCC's current net profit margins (2.3%) are higher than last year (1.7%).


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 earnings growth over the past year (41.1%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: CCC earnings growth over the past year (41.1%) exceeded the IT industry 9.5%.


Return on Equity

High ROE: CCC's Return on Equity (20.2%) is considered high.


Next Steps

Financial Health

How is Computacenter's financial position?


Financial Position Analysis

Short Term Liabilities: CCC's short term assets (£1.4B) exceed its short term liabilities (£1.1B).

Long Term Liabilities: CCC's short term assets (£1.4B) exceed its long term liabilities (£165.7M).


Debt to Equity History and Analysis

Debt Level: CCC's debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: CCC's debt to equity ratio has increased from 1.1% to 12.8% over the past 5 years.

Debt Coverage: CCC's debt is well covered by operating cash flow (342.9%).

Interest Coverage: CCC's interest payments on its debt are well covered by EBIT (31.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CCC's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: CCC's dividend (1.06%) is low compared to the top 25% of dividend payers in the UK market (5.14%).


Stability and Growth of Payments

Stable Dividend: CCC's dividend payments have been volatile 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 low payout ratio (12%), CCC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCC's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Mike Norris (59 yo)

25.75yrs

Tenure

UK£2,913,400

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 ($USD3.77M) is above average for companies of similar size in the UK market ($USD2.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mike Norris
CEO & Executive Director25.75yrsUK£2.91m1.08%
£ 28.3m
Philip Hulme
Co-Founder & Non-Executive Directorno dataUK£50.00k8.29%
£ 217.2m
Peter Ogden
Co-Founder & Non-Executive Director39.67yrsUK£50.00k6.59%
£ 172.7m
F. Conophy
Group Finance Director & Executive Directorno dataUK£1.67m1.64%
£ 43.0m
Mark Slaven
Group Chief Information Officer & Group Information Services Directorno datano datano data
Fraser Phillips
Head of Group Legal & Contracting7.67yrsno datano data
Barry Hoffman
Group Human Resources Directorno datano datano data
Reiner Louis
Managing Director of Germany7.67yrsno datano data
Kevin James
Group Chief Commercial Officerno datano datano data
Neil Hall
Managing Director of UK & Ireland2.92yrsno datano data
Lieven Bergmans
Managing Director at Rest of Europe5.67yrsno datano data
Michael Keogh
President of Americas & Managing Director of US2.67yrsno datano data

7.7yrs

Average Tenure

67yo

Average Age

Experienced Management: CCC's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mike Norris
CEO & Executive Director25.75yrsUK£2.91m1.08%
£ 28.3m
Philip Hulme
Co-Founder & Non-Executive Directorno dataUK£50.00k8.29%
£ 217.2m
Peter Ogden
Co-Founder & Non-Executive Director39.67yrsUK£50.00k6.59%
£ 172.7m
F. Conophy
Group Finance Director & Executive Directorno dataUK£1.67m1.64%
£ 43.0m
Peter Ryan
Independent Chairman1.33yrsUK£150.30k0.00080%
£ 21.0k
Rene Haas
Independent Non-Executive Director1.08yrsUK£20.20kno data
Timothy Powell
Independent Non-Executive Director5.67yrsUK£70.40k0.0012%
£ 31.2k
Ljiljana Mitic
Independent Non-Executive Director1.33yrsUK£34.50kno data
Rosalind Rivaz
Senior Independent Non-Executive Director2.42yrsUK£70.40k0.0012%
£ 32.0k

1.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CCC's board of directors are not considered experienced ( 1.9 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

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£2.621b
  • Shares outstanding: 112.98m
  • 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, the United America, and internationally. The company offers endpoint, infrastructure, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 03:11
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.