Softcat Plc (SCT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bytes Technology Group Plc

Computacenter Plc

Softcat Plc

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FDM Group (Holdings) Plc

KR1 Plc

NCC Group Plc

Instem Plc

Why is Softcat Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 53.93%

Healthy long term growth as Operating profit has grown by an annual rate 12.60%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Jan 26

OPERATING CASH FLOW(Y) Highest at GBP 341.17 MM
DEBTORS TURNOVER RATIO(HY) Highest at 2.43 times
CASH AND EQV(HY) Highest at GBP 206.01 MM

With ROE of 53.28%, it has a attractive valuation with a 12.20 Price to Book Value

Over the past year, while the stock has generated a return of -3.22%, its profits have risen by 21.6% ; the PEG ratio of the company is 1.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Softcat Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Softcat Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softcat Plc

-3.22%

0.13

32.49%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.15%

EBIT Growth (5y)

12.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

4.83

Tax Ratio

25.32%

Dividend Payout Ratio

43.99%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

127.10%

ROE (avg)

53.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

12.20

EV to EBIT

16.47

EV to EBITDA

15.51

EV to Capital Employed

38.41

EV to Sales

1.88

PEG Ratio

1.07

Dividend Yield

13.26%

ROCE (Latest)

233.14%

ROE (Latest)

53.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 341.17 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.43 times

CASH AND EQV(HY)

Highest at GBP 206.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -58.94 %

DIVIDEND PER SHARE(HY)

Highest at GBP 2.43

NET SALES(Q)

At GBP 837.54 MM has Grown at 53.51%

-5What is not working for the Company

INTEREST(HY)

At GBP 0.99 MM has Grown at 58.19%

RAW MATERIAL COST(Y)

Grown by 24.27% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 11.87 %

Here's what is working for Softcat Plc

Operating Cash Flow

Highest at GBP 341.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Debtors Turnover Ratio

Highest at 2.43 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At GBP 837.54 MM has Grown at 53.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Cash and Eqv

Highest at GBP 206.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -58.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at GBP 2.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Here's what is not working for Softcat Plc

Interest

At GBP 0.99 MM has Grown at 58.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit Margin

Lowest at 11.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 24.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales