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 Jan 25
- INTEREST(HY) At GBP 0.63 MM has Grown at 281.21%
- INTEREST COVERAGE RATIO(Q) Lowest at 12,342.13
- DEBT-EQUITY RATIO (HY) Highest at -40.12 %
3
With ROE of 44.64%, it has a fair valuation with a 11.07 Price to Book Value
- Over the past year, while the stock has generated a return of -5.09%, its profits have risen by 10.7% ; the PEG ratio of the company is 2.3
4
Below par performance in long term as well as near term
- Along with generating -5.09% 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
-6.79%
-0.47
26.32%
FTSE 100
16.5%
1.23
12.99%
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)
5.02
Tax Ratio
25.32%
Dividend Payout Ratio
43.99%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
127.10%
ROE (avg)
53.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
11.07
EV to EBIT
18.45
EV to EBITDA
17.64
EV to Capital Employed
20.74
EV to Sales
2.85
PEG Ratio
2.32
Dividend Yield
15.37%
ROCE (Latest)
112.36%
ROE (Latest)
44.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 235.27 MM
RAW MATERIAL COST(Y)
Fallen by -17.19% (YoY
DIVIDEND PER SHARE(HY)
Highest at GBP 1.97
NET SALES(Q)
Highest at GBP 545.58 MM
-9What is not working for the Company
INTEREST(HY)
At GBP 0.63 MM has Grown at 281.21%
INTEREST COVERAGE RATIO(Q)
Lowest at 12,342.13
DEBT-EQUITY RATIO
(HY)
Highest at -40.12 %
Here's what is working for Softcat Plc
Operating Cash Flow
Highest at GBP 235.27 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
Highest at GBP 545.58 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Dividend per share
Highest at GBP 1.97
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Raw Material Cost
Fallen by -17.19% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 3.97 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Softcat Plc
Interest
At GBP 0.63 MM has Grown at 281.21%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Interest Coverage Ratio
Lowest at 12,342.13
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at -40.12 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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