| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 6/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
SCT Overview
Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom.
Softcat Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£20.02 |
| 52 Week High | UK£10.82 |
| 52 Week Low | UK£22.60 |
| Beta | 0.69 |
| 1 Month Change | -6.54% |
| 3 Month Change | 4.98% |
| 1 Year Change | 73.33% |
| 3 Year Change | 210.39% |
| 5 Year Change | 530.35% |
| Change since IPO | 615.00% |
Recent News & Updates
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Shareholder Returns
| SCT | GB IT | GB Market | |
|---|---|---|---|
| 7D | -2.0% | -2.1% | 0.5% |
| 1Y | 73.3% | 43.9% | 26.7% |
Return vs Industry: SCT exceeded the UK IT industry which returned 43.9% over the past year.
Return vs Market: SCT exceeded the UK Market which returned 26.7% over the past year.
Price Volatility
| SCT volatility | |
|---|---|
| SCT Beta | 0.69 |
| Industry Beta | 0.90 |
| Market Beta | 1 |
Stable Share Price: SCT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SCT's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | 1,681 | Graeme Watt | https://www.softcat.com |
Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. 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 and professional services; and sells hardware.
Softcat Fundamentals Summary
| SCT fundamental statistics | |
|---|---|
| Market Cap | UK£3.97b |
| Earnings (TTM) | UK£96.19m |
| Revenue (TTM) | UK£1.16b |
41.3x
P/E Ratio3.4x
P/S RatioIs SCT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SCT income statement (TTM) | |
|---|---|
| Revenue | UK£1.16b |
| Cost of Revenue | UK£880.31m |
| Gross Profit | UK£276.36m |
| Expenses | UK£180.17m |
| Earnings | UK£96.19m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.48 |
| Gross Margin | 23.89% |
| Net Profit Margin | 8.32% |
| Debt/Equity Ratio | 0% |
How did SCT perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield43%
Payout RatioValuation
Is Softcat undervalued compared to its fair value and its price relative to the market?
41.28x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCT (£20.02) is trading above our estimate of fair value (£9.45)
Significantly Below Fair Value: SCT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCT is good value based on its PE Ratio (41.3x) compared to the UK IT industry average (44.4x).
PE vs Market: SCT is poor value based on its PE Ratio (41.3x) compared to the UK market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: SCT is poor value based on its PEG Ratio (13.7x)
Price to Book Ratio
PB vs Industry: SCT is overvalued based on its PB Ratio (22.2x) compared to the GB IT industry average (4.7x).
Future Growth
How is Softcat forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
3.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCT's forecast earnings growth (3% per year) is above the savings rate (0.9%).
Earnings vs Market: SCT's earnings (3% per year) are forecast to grow slower than the UK market (12.7% per year).
High Growth Earnings: SCT's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCT's revenue (7.5% per year) is forecast to grow faster than the UK market (5% per year).
High Growth Revenue: SCT's revenue (7.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCT's Return on Equity is forecast to be very high in 3 years time (41%).
Past Performance
How has Softcat performed over the past 5 years?
20.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCT has high quality earnings.
Growing Profit Margin: SCT's current net profit margins (8.3%) are higher than last year (7%).
Past Earnings Growth Analysis
Earnings Trend: SCT's earnings have grown significantly by 20.9% per year over the past 5 years.
Accelerating Growth: SCT's earnings growth over the past year (27.1%) exceeds its 5-year average (20.9% per year).
Earnings vs Industry: SCT earnings growth over the past year (27.1%) exceeded the IT industry 8.7%.
Return on Equity
High ROE: SCT's Return on Equity (53.7%) is considered outstanding.
Financial Health
How is Softcat's financial position?
Financial Position Analysis
Short Term Liabilities: SCT's short term assets (£470.2M) exceed its short term liabilities (£308.9M).
Long Term Liabilities: SCT's short term assets (£470.2M) exceed its long term liabilities (£9.3M).
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
Dividend
What is Softcat current dividend yield, its reliability and sustainability?
2.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCT's dividend (2.06%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).
High Dividend: SCT's dividend (2.06%) is low compared to the top 25% of dividend payers in the UK market (4.03%).
Stability and Growth of Payments
Stable Dividend: SCT has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SCT's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.9%), 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 (65.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Graeme Watt (59 yo)
3.5yrs
Tenure
UK£991,372
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's total compensation ($USD1.36M) is below average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Graeme's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SCT's management team is considered experienced (3.5 years average tenure).
Board Members
Experienced Board: SCT's board of directors are considered experienced (3.5 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
Softcat plc's employee growth, exchange listings and data sources
Key Information
- Name: Softcat plc
- Ticker: SCT
- Exchange: LSE
- Founded: 1987
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: UK£3.971b
- Shares outstanding: 198.33m
- Website: https://www.softcat.com
Number of Employees
Location
- Softcat plc
- Solar House
- Fieldhouse Lane
- Marlow
- Buckinghamshire
- SL7 1LW
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/27 21:41 |
| End of Day Share Price | 2021/10/27 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/07/31 |
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.