Softcat
Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The last earnings update was 61 days ago. More info.
Add to Portfolio Compare Print
- Softcat has significant price volatility in the past 3 months.
SCT Share Price and Events
7 Day Returns
1 Year Returns
SCT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Softcat (SCT) | 4.4% | 8.2% | 28.6% | 40.3% | 198.4% | - |
| GB IT | 1.5% | 6% | 21.9% | 6.5% | 60.7% | 39.1% |
| GB Market | 1.3% | -1.6% | 1.9% | -5% | 15.8% | 2.5% |
1 Year Return vs Industry and Market
- SCT outperformed the IT industry which returned 6.5% over the past year.
- SCT outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Value
Is Softcat undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Softcat
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Softcat.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.1% |
| Perpetual Growth Rate | 10-Year GB Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year GB Govt Bond Rate | 1.2% |
| Equity Risk Premium | S&P Global | 6.7% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.049 (1 + (1- 19%) (0%)) |
1.033 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.03 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.033 * 6.65%) |
8.09% |
Discounted Cash Flow Calculation for LSE:SCT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Softcat is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (GBP, Millions) | Source |
Present Value Discounted (@ 8.09%) |
|
|---|---|---|---|
| 2019 | 59.60 | Analyst x3 | 55.14 |
| 2020 | 64.78 | Analyst x4 | 55.44 |
| 2021 | 69.20 | Analyst x4 | 54.79 |
| 2022 | 73.25 | Analyst x2 | 53.65 |
| 2023 | 78.45 | Analyst x2 | 53.16 |
| 2024 | 82.21 | Est @ 4.79% | 51.53 |
| 2025 | 85.27 | Est @ 3.72% | 49.45 |
| 2026 | 87.80 | Est @ 2.97% | 47.11 |
| 2027 | 89.95 | Est @ 2.45% | 44.65 |
| 2028 | 91.82 | Est @ 2.08% | 42.16 |
| Present value of next 10 years cash flows | £507.07 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= £91.82 × (1 + 1.23%) ÷ (8.09% – 1.23%) |
£1,353.51 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= £1,353.51 ÷ (1 + 8.09%)10 |
£621.49 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= £507.07 + £621.49 |
£1,128.56 |
| Equity Value per Share (GBP) |
= Total value / Shares Outstanding
= £1,128.56 / 197.45 |
£5.72 |
| Calculation | Result | |
|---|---|---|
| Value per share (GBP) | From above. | £5.72 |
| Current discount | Discount to share price of
£9.40
= -1 x (£9.40 - £5.72) / £5.72 |
-64.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Softcat is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Softcat's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Softcat's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-01-31) in GBP | £0.32 |
| LSE:SCT Share Price ** | LSE (2019-05-17) in GBP | £9.4 |
| United Kingdom of Great Britain and Northern Ireland IT Industry PE Ratio | Median Figure of 22 Publicly-Listed IT Companies | 26.99x |
| United Kingdom of Great Britain and Northern Ireland Market PE Ratio | Median Figure of 788 Publicly-Listed Companies | 16.24x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Softcat.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = LSE:SCT Share Price ÷ EPS (both in GBP) = 9.4 ÷ 0.32 |
29.45x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Softcat is overvalued based on earnings compared to the GB IT industry average.
- Softcat is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does
Softcat's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 29.45x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
5.5%per year |
| United Kingdom of Great Britain and Northern Ireland IT Industry PEG Ratio | Median Figure of 17 Publicly-Listed IT Companies | 1.43x |
| United Kingdom of Great Britain and Northern Ireland Market PEG Ratio | Median Figure of 574 Publicly-Listed Companies | 1.5x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 29.45x ÷ 5.5% |
5.35x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Softcat is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Softcat's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-01-31) in GBP | £0.41 |
| LSE:SCT Share Price * | LSE (2019-05-17) in GBP | £9.4 |
| United Kingdom of Great Britain and Northern Ireland IT Industry PB Ratio | Median Figure of 43 Publicly-Listed IT Companies | 3.12x |
| United Kingdom of Great Britain and Northern Ireland Market PB Ratio | Median Figure of 1,368 Publicly-Listed Companies | 1.51x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = LSE:SCT Share Price ÷ Book Value per Share (both in GBP) = 9.4 ÷ 0.41 |
22.66x |
* Primary Listing of Softcat.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Softcat is overvalued based on assets compared to the GB IT industry average.
Value checks
We assess Softcat's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Softcat has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Softcat expected to perform in the next 1 to 3 years based on estimates from 4 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Softcat's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
- Softcat's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
- Softcat's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| LSE:SCT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 5.5% |
| LSE:SCT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 7.9% |
| United Kingdom of Great Britain and Northern Ireland IT Industry Earnings Growth Rate | Market Cap Weighted Average | 23.4% |
| United Kingdom of Great Britain and Northern Ireland IT Industry Revenue Growth Rate | Market Cap Weighted Average | 10.3% |
| United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate | Market Cap Weighted Average | 10.8% |
| United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate | Market Cap Weighted Average | 4.9% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-07-31 | 1,432 | 74 | 80 | 1 |
| 2022-07-31 | 1,648 | 70 | 76 | 1 |
| 2021-07-31 | 1,299 | 70 | 71 | 4 |
| 2020-07-31 | 1,199 | 66 | 67 | 4 |
| 2019-07-31 | 1,100 | 61 | 64 | 4 |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-01-31 | 1,157 | 65 | 63 |
| 2018-10-31 | 1,120 | 61 | 59 |
| 2018-07-31 | 1,082 | 57 | 55 |
| 2018-04-30 | 890 | 49 | 49 |
| 2018-01-31 | 812 | 41 | 43 |
| 2017-10-31 | 822 | 41 | 41 |
| 2017-07-31 | 832 | 41 | 40 |
| 2017-04-30 | 795 | 36 | 39 |
| 2017-01-31 | 757 | 32 | 38 |
| 2016-10-31 | 715 | 31 | 36 |
| 2016-07-31 | 672 | 30 | 33 |
| 2016-04-30 | 648 | 43 | 31 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Softcat Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-07-31 | 0.39 | 0.39 | 0.39 | 1.00 |
| 2022-07-31 | 0.37 | 0.37 | 0.37 | 1.00 |
| 2021-07-31 | 0.36 | 0.36 | 0.35 | 3.00 |
| 2020-07-31 | 0.33 | 0.34 | 0.33 | 3.00 |
| 2019-07-31 | 0.32 | 0.32 | 0.31 | 3.00 |
| Date (Data in GBP Millions) | EPS * |
|---|---|
| 2019-01-31 | 0.32 |
| 2018-10-31 | 0.30 |
| 2018-07-31 | 0.28 |
| 2018-04-30 | 0.25 |
| 2018-01-31 | 0.22 |
| 2017-10-31 | 0.21 |
| 2017-07-31 | 0.20 |
| 2017-04-30 | 0.20 |
| 2017-01-31 | 0.19 |
| 2016-10-31 | 0.18 |
| 2016-07-31 | 0.17 |
| 2016-04-30 | 0.16 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Softcat's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Softcat has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Softcat performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Softcat's year on year earnings growth rate has been positive over the past 5 years.
- Softcat's 1-year earnings growth exceeds its 5-year average (47.3% vs 19.6%)
- Softcat's earnings growth has exceeded the GB IT industry average in the past year (47.3% vs 23%).
Earnings and Revenue History
All data from Softcat Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-01-31 | 1,157.34 | 63.02 | 116.94 | |
| 2018-10-31 | 1,119.51 | 59.02 | 111.89 | |
| 2018-07-31 | 1,081.68 | 55.01 | 106.84 | |
| 2018-04-30 | 889.74 | 48.90 | 101.50 | |
| 2018-01-31 | 812.34 | 42.80 | 96.15 | |
| 2017-10-31 | 822.41 | 41.45 | 90.97 | |
| 2017-07-31 | 832.49 | 40.11 | 85.78 | |
| 2017-04-30 | 794.85 | 39.04 | 84.84 | |
| 2017-01-31 | 757.21 | 37.97 | 83.90 | |
| 2016-10-31 | 714.78 | 35.56 | 81.05 | |
| 2016-07-31 | 672.35 | 33.16 | 78.20 | |
| 2016-04-30 | 648.10 | 31.33 | 73.17 | |
| 2016-01-31 | 623.86 | 29.50 | 68.15 | |
| 2015-10-31 | 609.97 | 30.31 | 65.49 | |
| 2015-07-31 | 596.08 | 31.12 | 62.84 | |
| 2014-07-31 | 504.80 | 27.35 | 52.99 | |
| 2013-07-31 | 395.76 | 20.59 | 43.04 | |
| 2012-07-31 | 304.06 | 17.20 | 33.99 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Softcat made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
- Softcat used its assets more efficiently than the GB IT industry average last year based on Return on Assets.
- Softcat has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Softcat's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Softcat has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Softcat's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Softcat's finances.
The net worth of a company is the difference between its assets and liabilities.
- Softcat is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Softcat has no long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Softcat has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Softcat Company Filings, last reported 3 months ago.
| Date (Data in GBP Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-01-31 | 81.95 | 0.00 | 52.77 |
| 2018-10-31 | 81.95 | 0.00 | 52.77 |
| 2018-07-31 | 100.82 | 0.00 | 72.83 |
| 2018-04-30 | 100.82 | 0.00 | 72.83 |
| 2018-01-31 | 70.69 | 0.00 | 43.32 |
| 2017-10-31 | 70.69 | 0.00 | 43.32 |
| 2017-07-31 | 88.42 | 0.00 | 61.64 |
| 2017-04-30 | 88.42 | 0.00 | 61.64 |
| 2017-01-31 | 69.75 | 0.00 | 46.62 |
| 2016-10-31 | 69.75 | 0.00 | 46.62 |
| 2016-07-31 | 87.36 | 0.00 | 62.36 |
| 2016-04-30 | 87.36 | 0.00 | 62.36 |
| 2016-01-31 | 68.96 | 0.00 | 54.88 |
| 2015-10-31 | 68.96 | 0.00 | 54.88 |
| 2015-07-31 | 95.82 | 0.00 | 74.64 |
| 2014-07-31 | 72.30 | 0.00 | 37.72 |
| 2013-07-31 | 48.38 | 0.00 | 8.68 |
| 2012-07-31 | 41.28 | 2.18 | 12.28 |
- Softcat has no debt.
- Softcat had no debt 5 years ago.
- Softcat has no debt, it does not need to be covered by operating cash flow.
- Softcat has no debt, therefore coverage of interest payments is not a concern.
Financial health checks
We assess Softcat's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Softcat has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Softcat's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
£2,000 of
Softcat
shares you are expected to receive
£60
in your first year as a dividend.
Dividend Amount
- Softcat's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
- Softcat's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United Kingdom of Great Britain and Northern Ireland IT Industry Average Dividend Yield | Market Cap Weighted Average of 19 Stocks | 2.3% |
| United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield | Market Cap Weighted Average of 705 Stocks | 4.3% |
| United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield | 25th Percentile | 2% |
| United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield | 75th Percentile | 5.2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in £) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-07-31 | 0.18 | 1.00 |
| 2022-07-31 | 0.17 | 1.00 |
| 2021-07-31 | 0.23 | 5.00 |
| 2020-07-31 | 0.21 | 5.00 |
| 2019-07-31 | 0.20 | 5.00 |
| Date (Data in £) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-03-19 | 0.284 | 3.259 |
| 2018-12-06 | 0.272 | 4.011 |
| 2017-11-03 | 0.225 | 3.453 |
| 2017-10-18 | 0.225 | 4.423 |
| 2016-12-08 | 0.072 | 1.948 |
| 2016-03-17 | 0.034 | 1.051 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Softcat has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Softcat only paid a dividend in the past 3 years.
Income/ dividend checks
We assess Softcat's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Softcat afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Softcat has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | £605,539 |
| AGE | 56 |
| TENURE AS CEO | 1.1 years |
CEO Bio
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 Technology Solutions UK) at Avnet, Inc. He joined Avnet Technology Solutions in July 2010. Mr. Watt served as Corporate Vice President\Vice President of Avnet Inc. since December 2011. Mr. Watt served as the President of EMEA at Avnet Technology Solutions S.A. He has been the President of EMEA at Avnet Technology Solutions, Inc. since July 2010. He is responsible for the strategic direction and profitable growth of Avnet's value-added IT solutions distribution business throughout the region. He has more than 25 years of experience in the IT distribution industry. He served as Senior Vice President of EMEA at Tech Data Corporation and Advanced and Specialist Solutions. He served as President of Worldwide Distribution at Bell Microproducts Inc. since May 2008 and served as its Unit President since April 2004. He joined Bell Micro in April 2004. Since May 2008, he was responsible for purchasing and integrating two significant acquisitions. He served as President of European divisions of Bell Microproducts Inc., from April 2004 to May 2008 and had responsibility for its UK based Ideal Hardware, Bell Microproducts European divisions and Bell Microproducts Inc.'s expansion program in the EMEA region. Mr. Watt served as President of Europe of Tech Data Corp. from August 2000 to October 8, 2003. He joined Tech Data Corp., (via First Software) in January 1988 as Financial Controller for the United Kingdom and Ireland and served as its Managing Director since 1995. At Tech Data, he served various positions including Regional Director of the Northern Region and Finance Director. Mr. Watt served as Managing Director UK & Ireland of Tech Data's Computer 2000 Group since January 2000. He served as President of Tech Data Europe GmbH (alternate name: Tech Data EMEA), where he was responsible for many developments, including the acquisition of three companies, the implementation of major restructuring programs, the development of a centralized purchasing organization, and the expansion of e-commerce capabilities. He served at Arthur Young for two years as a Chartered Accountant. He is a qualified Chartered Accountant. Mr. Watt holds a Bachelor of Sciences Degree in Biological Science and Physiology from Edinburgh University.
CEO Compensation
- Insufficient data for Graeme to compare compensation growth.
- Graeme's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure of the Softcat management team in years:
- The tenure for the Softcat management team is about average.
Management Team
Graeme Watt
CEO & Executive Director
£606K
56
1.1 yrs
Graham Charlton
CFO & Executive Director
£448K
4.3 yrs
Sam Routledge
Chief Technology Officer
Doug Fawell
Chief Information Officer
Stewart Hayward
Head of Marketing & Bids
Rebecca Monk
HR Director
Colin Brown
Managing Director
£93K
7.3 yrs
Winifred Chime
Company Secretary
Colleen Kapase
VP and Partner of Go To Market Strategy - Incentives & Programs
4.8 yrs
Richard Lecoutre
Finance Director
£105K
6 yrs
Board of Directors Tenure
Average tenure and age of the Softcat board of directors in years:
- The tenure for the Softcat board of directors is about average.
Board of Directors
Martin Hellawell
Non-Executive Chairman
£584K
1.1 yrs
Graeme Watt
CEO & Executive Director
£606K
56
1.1 yrs
Graham Charlton
CFO & Executive Director
£448K
4.2 yrs
Lee Ginsberg
Senior Independent Non-Executive Director
£64K
60
3.7 yrs
Peter Ventress
Independent Non-Executive Director
£58K
57
3.6 yrs
Vin Murria
Independent Non-Executive Director
£48K
55
3.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (£) | Value (£) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 25. Mar 19 | Sell | Martin Hellawell | Individual | 21. Mar 19 | 21. Mar 19 | -212,708 | £8.43 | £-1,793,277 | ||
| 21. Mar 19 | Sell | Graham Charlton | Individual | 19. Mar 19 | 19. Mar 19 | -46,000 | £8.63 | £-396,824 | ||
Management checks
We assess Softcat's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Softcat has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
I Ran A Stock Scan For Earnings Growth And Softcat (LON:SCT) Passed With Ease
So if you're like me, you might be more interested in profitable, growing companies, like Softcat (LON:SCT). … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Softcat maintained stable EBIT margins over the last year, all while growing revenue 42% to UK£1.2b.
Simply Wall St - – Full articleNeed To Know: Softcat plc (LON:SCT) Insiders Have Been Selling Shares
So we'll take a look at whether insiders have been buying or selling shares in Softcat plc (LON:SCT). … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Over the last year, we note insiders sold 259k shares worth UK£2.2m
Simply Wall St - – Full articleTop Bear Market Investment: Softcat plc (LON:SCT)
Softcat plc is a financially healthy and robust stock with a proven track record of outperformance. … We all know Softcat, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Today I will give a high-level overview of the stock, and why I believe it's still attractive.
Simply Wall St - – Full articleSoftcat plc (LON:SCT): Financial Strength Analysis
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Softcat plc (LON:SCT), with a market cap of UK£1.6b, often get neglected by retail investors. … SCT’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.
Simply Wall St - – Full articleSoftcat plc (LON:SCT): Poised For Long-Term Success?
The most recent earnings update Softcat plc's (LON:SCT) released in July 2018a … suggested
Simply Wall St - – Full articleShould You Buy Softcat plc (LON:SCT) For Its Dividend?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Softcat plc (LON:SCT) has recently paid dividends to shareholders, and currently yields 3.5%. … Let's dig deeper into whether Softcat should have a place in your portfolio.
Simply Wall St - – Full articleInvestors Who Bought Softcat Shares Three Years Ago Are Now Up 116%
For example, the Softcat plc (LON:SCT) share price has soared 116% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Softcat achieved compound earnings per share growth of 20% per year.
Simply Wall St - – Full articleA Closer Look At Softcat plc's (LON:SCT) Impressive ROE
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.55 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhy Softcat plc (LON:SCT) Is An Attractive Investment To Consider
Softcat plc (LON:SCT) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level
Simply Wall St - – Full articleWhat Should We Expect From Softcat plc's (LON:SCT) Earnings In The Next 12 Months?
After Softcat plc's (LON:SCT) earnings announcement in July 2018,. … the consensus outlook from analysts appear somewhat bearish, … as a 12% rise in profits is expected in the upcoming year,
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | Softcat plc |
| SCT | |
| Exchange: | LSE |
| Founded: | 1993 |
| £1,856,059,572 | |
| 197,453,146 | |
| Website: | http://www.softcat.com |
| Address: |
Softcat plc Solar House, Fieldhouse Lane, Marlow, Buckinghamshire, SL7 1LW, United Kingdom |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| LSE | SCT | Ordinary Shares | London Stock Exchange | GB | GBP | 13. Nov 2015 | |
| DB | SF5 | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 13. Nov 2015 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/19 22:50 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/04/29 |
| Last earnings filing: | 2019/03/19 |
| Last earnings reported: | 2019/01/31 |
| Last annual earnings reported: | 2018/07/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
