Softcat
Market Cap
UK£1.9b
Last Updated
2019/10/14 21:27 UTC
Data Sources
Company Financials +
Executive Summary
Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom.
Snowflake
Fundamentals
Flawless balance sheet with outstanding 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
Market Performance
7 Day Return
-1.0%
SCT
0.8%
GB IT
1.1%
GB Market
1 Year Return
26.9%
SCT
8.3%
GB IT
2.7%
GB Market
Return vs Industry: SCT exceeded the UK IT industry which returned 8.3% over the past year.
Return vs Market: SCT exceeded the UK Market which returned 2.7% over the past year.
Shareholder returns
| SCT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 0.8% | 1.1% |
| 30 Day | -3.1% | -3.6% | -1.7% |
| 90 Day | 0.6% | -6.7% | -2.7% |
| 1 Year | 32.5%26.9% | 11.0%8.3% | 7.8%2.7% |
| 3 Year | 272.2%221.0% | 65.7%53.7% | 19.3%4.7% |
| 5 Year | n/a | 72.3%56.6% | 38.0%8.1% |
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
2 weeks ago | Simply Wall St
Have Insiders Been Selling Softcat plc (LON:SCT) Shares?1 month ago | Simply Wall St
Will Softcat plc's (LON:SCT) Earnings Grow Over The Next Year?1 month ago | Simply Wall St
Should We Worry About Softcat plc's (LON:SCT) P/E Ratio?Valuation
Is Softcat undervalued compared to its fair value and its price relative to the market?
29.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: SCT (£9.52) is trading above our estimate of fair value (£7.77)
Significantly Undervalued: SCT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCT is poor value based on its PE Ratio (29.8x) compared to the IT industry average (26.9x).
PE vs Market: SCT is poor value based on its PE Ratio (29.8x) compared to the UK market (16.4x).
Price to Earnings Growth Ratio
Low PEG Ratio: SCT is poor value based on its PEG Ratio (6.7x)
Price to Book Ratio
PB vs Industry: SCT is overvalued based on its PB Ratio (22.9x) compared to the GB IT industry average (2.5x).
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Future Growth
How is Softcat forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
4.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCT's forecast earnings growth (4.5% per year) is above the savings rate (1.2%).
Earnings vs Market: SCT's earnings (4.5% per year) are forecast to grow slower than the UK market (12.3% per year).
High Growth Earnings: SCT's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCT's revenue (11% per year) is forecast to grow faster than the UK market (3.8% per year).
High Growth Revenue: SCT's revenue (11% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: SCT's Return on Equity is forecast to be very high in 3 years time (53.3%).
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Past Performance
How has Softcat performed over the past 5 years?
19.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: SCT's earnings have grown by 19.6% per year over the past 5 years.
Accelerating Growth: SCT's earnings growth over the past year (47.3%) exceeds its 5-year average (19.6% per year).
Earnings vs Industry: SCT earnings growth over the past year (47.3%) exceeded the IT industry 4.2%.
Return on Equity
High ROE: SCT's Return on Equity (76.9%) is considered outstanding.
Return on Assets
ROA vs Industry: SCT has a higher Return on Assets than the IT industry average last year.
Return on Capital Employed
ROCE Improving: SCT has significantly improved its Return on Capital Employed over the past 3 years.
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Financial Health
How is Softcat's financial position?
Financial Position Analysis
Short Term Liabilities: SCT's short term assets (£328.6M) exceeds its short term liabilities (£254.0M)
Long Term Liabilities: SCT has no long term liabilities
Debt to Equity History and Analysis
Debt Level: SCT is debt free.
Reducing Debt: SCT has not had any debt for past 5 years.
Debt Coverage: SCT has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SCT has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: SCT has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if SCT's debt is covered by short term assets.
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Dividend
What is Softcat's current dividend yield, its reliability and sustainability?
2.98%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: SCT's dividend (2.98%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).
High Dividend: SCT's dividend (2.98%) is low compared to the top 25% of dividend payers in the UK market (5.44%).
Stable Dividend: Whilst dividend payments have been stable, SCT has been paying a dividend for less than 10 years.
Growing Dividend: SCT's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41.7%), SCT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCT's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).
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Management
What is the CEO of Softcat's salary, the management and board of directors tenure and is there insider trading?
5.3yrs
Average management tenure
CEO
Graeme Watt (57yo)
1.5yrs
Tenure
UK£605,539
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.
Compensation vs Earnings: Insufficient data to compare Graeme's compensation with company performance.
Management Age and Tenure
5.3yrs
Average Tenure
Experienced Management: SCT's management team is seasoned and experienced (5.3 years average tenure).
Board Age and Tenure
2.7yrs
Average Tenure
56.5yo
Average Age
Experienced Board: SCT's board of directors are not considered experienced ( 2.7 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
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 18,202 |
| Max Price | UK£9.43 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 212,708 |
| Max Price | UK£8.43 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 46,000 |
| Max Price | UK£8.63 |
Ownership Breakdown
Management Team
Graeme Watt (57yo)
CEO & Executive Director
- Tenure: 1.5yrs
- Compensation: UK£605.54k
Doug Fawell
Chief Information Officer
- Tenure: 0yrs
Sam Routledge
Chief Technology Officer
- Tenure: 0yrs
Colleen Kapase
VP and Partner of Go To Market Strategy - Incentives & Programs
- Tenure: 5.3yrs
Winifred Chime
Company Secretary
- Tenure: 0yrs
Colin Brown
Managing Director
- Tenure: 7.8yrs
- Compensation: UK£93.36k
Stewart Hayward
Head of Marketing & Bids
- Tenure: 0yrs
Graham Charlton
CFO & Executive Director
- Tenure: 4.6yrs
- Compensation: UK£447.71k
Richard Lecoutre
Finance Director
- Tenure: 6.4yrs
- Compensation: UK£104.56k
Rebecca Monk
HR Director
- Tenure: 0yrs
Board Members
Vin Murria (56yo)
Independent Non-Executive Director
- Tenure: 3.9yrs
- Compensation: UK£47.74k
Graeme Watt (57yo)
CEO & Executive Director
- Tenure: 1.5yrs
- Compensation: UK£605.54k
Peter Ventress (58yo)
Independent Non-Executive Director
- Tenure: 4yrs
- Compensation: UK£58.35k
Martin Hellawell (54yo)
Non-Executive Chairman
- Tenure: 1.5yrs
- Compensation: UK£583.55k
Robyn Perriss
Independent Non-Executive Director
- Tenure: 0.3yrs
Graham Charlton
CFO & Executive Director
- Tenure: 4.6yrs
- Compensation: UK£447.71k
Company Information
Softcat plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Softcat plc
- Ticker: SCT
- Exchange: LSE
- Founded: 1993
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: UK£1.880b
- Shares outstanding: 197.45m
- Website: https://www.softcat.com
Number of Employees
Location
- Softcat plc
- Solar House
- Fieldhouse Lane
- Marlow
- Buckinghamshire
- SL7 1LW
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCT | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Nov 2015 |
| SCTL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Nov 2015 |
| SF5 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 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 busine ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 21:27 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/01/31 |
| Annual Earnings | 2018/07/31 |
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.