company background image
CCC

ComputacenterLSE:CCC Stock Report

Market Cap

UK£3.2b

7D

0.8%

1Y

20.6%

Updated

27 Sep, 2021

Data

Company Financials +
CCC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

CCC Overview

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

Computacenter Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Computacenter
Historical stock prices
Current Share PriceUK£28.22
52 Week HighUK£20.81
52 Week LowUK£30.98
Beta0.70
1 Month Change-2.15%
3 Month Change8.46%
1 Year Change20.60%
3 Year Change122.21%
5 Year Change298.59%
Change since IPO145.08%

Recent News & Updates

Shareholder Returns

CCCGB ITGB Market
7D0.8%1.7%1.6%
1Y20.6%45.8%21.7%

Return vs Industry: CCC underperformed the UK IT industry which returned 45.3% over the past year.

Return vs Market: CCC underperformed the UK Market which returned 24.1% over the past year.

Price Volatility

Is CCC's price volatile compared to industry and market?
CCC volatility
CCC Beta0.70
Industry Beta0.89
Market Beta1

Stable Share Price: CCC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CCC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198116,668Mike Norrishttps://www.computacenter.com

Computacenter plc provides information technology (IT) infrastructure services in the United Kingdom, Germany, France, the United America, and internationally. The company offers endpoint, infrastructure, cyber security, information security management, and identity and access management solutions; network solutions, including local area and datacentre network, smart infrastructure, and audio-visual solutions; and datacentre solutions, such as enterprise computing, hybrid cloud, data and storage management, and analytics and big data. It also provides workplace solutions comprising client computing, virtual desktop, enterprise mobility, and print; office and online, video and voice communication, messaging, and collaboration solutions; global and next generation service desk solutions; smart supply, supply chain, lifecycle management, and e-business services; change and consulting services; and managed, and support and maintenance services.

Computacenter Fundamentals Summary

How do Computacenter's earnings and revenue compare to its market cap?
CCC fundamental statistics
Market CapUK£3.19b
Earnings (TTM)UK£183.63m
Revenue (TTM)UK£6.16b

17.4x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCC income statement (TTM)
RevenueUK£6.16b
Cost of RevenueUK£5.33b
Gross ProfitUK£828.02m
ExpensesUK£644.38m
EarningsUK£183.63m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.62
Gross Margin13.44%
Net Profit Margin2.98%
Debt/Equity Ratio6.1%

How did CCC perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCC (£28.22) is trading below our estimate of fair value (£30.32)

Significantly Below Fair Value: CCC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCC is good value based on its PE Ratio (17.4x) compared to the UK IT industry average (47.7x).

PE vs Market: CCC is good value based on its PE Ratio (17.4x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: CCC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CCC's PB Ratio (4.6x) is in line with the GB IT industry average.


Future Growth

How is Computacenter forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCC's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: CCC's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: CCC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CCC's revenue (3.6% per year) is forecast to grow slower than the UK market (5.9% per year).

High Growth Revenue: CCC's revenue (3.6% 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 (19.8%).


Past Performance

How has Computacenter performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCC has high quality earnings.

Growing Profit Margin: CCC's current net profit margins (3%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: CCC's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: CCC's earnings growth over the past year (58.6%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: CCC earnings growth over the past year (58.6%) exceeded the IT industry -10.9%.


Return on Equity

High ROE: CCC's Return on Equity (26.7%) is considered high.


Financial Health

How is Computacenter's financial position?


Financial Position Analysis

Short Term Liabilities: CCC's short term assets (£1.8B) exceed its short term liabilities (£1.4B).

Long Term Liabilities: CCC's short term assets (£1.8B) exceed its long term liabilities (£196.3M).


Debt to Equity History and Analysis

Debt Level: CCC's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: CCC's debt to equity ratio has increased from 0.1% to 6.1% over the past 5 years.

Debt Coverage: CCC's debt is well covered by operating cash flow (457.3%).

Interest Coverage: CCC's interest payments on its debt are well covered by EBIT (35.6x coverage).


Balance Sheet


Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCC's dividend (1.8%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: CCC's dividend (1.8%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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 reasonably low payout ratio (34%), 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 (39.8% payout ratio).


Next Steps

Management

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

8.7yrs

Average management tenure


CEO

Mike Norris (60 yo)

26.75yrs

Tenure

UK£2,591,700

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 ($USD3.55M) is above average for companies of similar size in the UK market ($USD1.63M).

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


Leadership Team

Experienced Management: CCC's management team is seasoned and experienced (8.7 years average tenure).


Board Members

Experienced Board: CCC's board of directors are considered experienced (3 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Computacenter plc's 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£3.193b
  • Shares outstanding: 113.15m
  • Website: https://www.computacenter.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:12
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.