ScoreWhy is Softcat Plc ?
1
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 13.93%
- Company has very low debt and has enough cash to service the debt requirements
2
Flat results in Jul 25
- INTEREST COVERAGE RATIO(Q) Lowest at 7,947.22
- ROCE(HY) Lowest at 41.77%
- RAW MATERIAL COST(Y) Grown by 28.88% (YoY)
3
With ROE of 40.80%, it has a attractive valuation with a 6.78 Price to Book Value
- Over the past year, while the stock has generated a return of -22.74%, its profits have risen by 16.1% ; the PEG ratio of the company is 1
4
Below par performance in long term as well as near term
- Along with generating -22.74% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Softcat Plc
-22.74%
-0.96
27.58%
FTSE 100
13.98%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.25%
EBIT Growth (5y)
13.93%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
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
0
Institutional Holding
0.01%
ROCE (avg)
127.10%
ROE (avg)
53.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
6.78
EV to EBIT
11.78
EV to EBITDA
11.13
EV to Capital Employed
13.18
EV to Sales
1.45
PEG Ratio
1.04
Dividend Yield
19.71%
ROCE (Latest)
111.90%
ROE (Latest)
40.80%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 269.55 MM
CASH AND EQV(HY)
Highest at GBP 182.28 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 2.34 times
DIVIDEND PER SHARE(HY)
Highest at GBP 2.34
NET SALES(Q)
Highest at GBP 912.83 MM
OPERATING PROFIT(Q)
Highest at GBP 112.77 MM
PRE-TAX PROFIT(Q)
Highest at GBP 108.5 MM
NET PROFIT(Q)
Highest at GBP 80.85 MM
EPS(Q)
Highest at GBP 0.38
-15What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 7,947.22
ROCE(HY)
Lowest at 41.77%
RAW MATERIAL COST(Y)
Grown by 28.88% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 12.5 times
INTEREST(Q)
Highest at GBP 1.42 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.35 %
Here's what is working for Softcat Plc
Operating Cash Flow
Highest at GBP 269.55 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
At GBP 912.83 MM has Grown at 84.23%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (GBP MM)
Net Sales
Highest at GBP 912.83 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 112.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 108.5 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 80.85 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.38
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Cash and Eqv
Highest at GBP 182.28 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 2.34 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at GBP 2.34
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Depreciation
Highest at GBP 6.52 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Depreciation
At GBP 6.52 MM has Grown at 64.13%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (GBP MM)
Here's what is not working for Softcat Plc
Interest Coverage Ratio
Lowest at 7,947.22 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at GBP 1.42 MM
in the last five periods and Increased by 125.6% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Operating Profit Margin
Lowest at 12.35 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 12.5 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 28.88% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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