Computacenter (CCC) AI Stock Analysis

• Market Cap: £2.38B
• Dividend Yield: 3.11%
• Average Volume (3M): 293.60K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.02
• Revenue Growth: 0.61%
• EPS Growth: -9.17%
• Country: UK
• Employees: 20,074
• Sector: Technology
• Sector Strength: 45
• Industry: Information Technology Services
• EPS (TTM): 1.59
• Shares Outstanding: 106,243,935
• 10 Day Avg. Volume: 203,760
• 30 Day Avg. Volume: 293,595
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.44
• Price to Cash Flow (P/CF): 1020.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,764.00
• Price Target Upside: 21.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Computacenter demonstrates solid financial performance with consistent revenue growth and effective cash management. The technical analysis suggests a neutral market stance, while the reasonable valuation and positive corporate events provide a supportive backdrop for future growth. The overall score reflects a well-managed company with a balanced approach to risk and opportunity.

Positive Factors

Financial Performance

Reported revenue is up 0.6% to £6.96bn versus Refinitiv consensus of -4.0% to £6.65bn, indicating better-than-expected performance.

Order Backlog

The year-end product order backlog is up 116% year-over-year in constant currency, providing confidence for future momentum.

Valuation

The valuation at FY24E ex-cash PE of 11.2x remains attractive, suggesting potential for stock appreciation.

Negative Factors

Guidance Pressure

Computacenter's Q3 update with slightly lowered guidance for the year is likely to put pressure on the shares.

Slower Deliveries

Certain US shipments are now expected to be completed in Q4 and early 2025, indicating slower deliveries.

Subdued Industry Trends

Subdued industry trends with September Tech Sourcing volumes below expectations and slower order completion in North America suggest modest full-year guidance.

Computacenter Business Overview & Revenue Model

Company Description

Computacenter plc provides information technology (IT) infrastructure and operations services in the United Kingdom, Germany, France, North America, and internationally. The company offers workplace solutions, including endpoint management, field and lifecycle, virtual desktop, managed print, service desk and remote support, application, collaboration management, and experience management services, as well as device as a service; applications and data solutions, including software development, software lifecycle management, cloud and application support, application migration, data and analytics, user experience, and process automation services; cloud and data center solutions, which include data center, cloud platform, marketplace software sourcing, private cloud, enterprise cloud, finops, data center deployment, cloud optimization, application migration, infrastructure and cloud managed, and application platform services. Tt also provides networking solutions comprising data center and cloud, local and wide area, wireless, and industrial networks; and security solutions that include cyber defense, infrastructure, cloud security, workplace security, industrial security, and identity and access services, as well as IT governance, risk, and compliance solutions. Computacenter plc was founded in 1981 and is based in Hatfield, the United Kingdom.

How the Company Makes Money

Computacenter makes money primarily through three key revenue streams: technology sourcing, professional services, and managed services. Technology sourcing involves the procurement and supply of IT hardware and software products to clients. Professional services encompass consulting, project management, and systems integration, where Computacenter provides expertise to help clients design and implement IT solutions. Managed services include the ongoing management and support of IT infrastructure, either on-site or remotely, allowing clients to focus on their core business functions. Significant partnerships with leading technology vendors such as HP, Cisco, and Microsoft enhance Computacenter's offerings, providing access to cutting-edge technologies and solutions. The company's diversified client base and strategic alliances contribute significantly to its earnings.

Computacenter Financial Statement Overview

Summary

Computacenter exhibits strong financial health with consistent revenue growth and efficient cash flow management. The company maintains a stable balance sheet with improving leverage ratios and enhancing profitability margins over time. Despite some fluctuations in EBIT and investing activities, the financial statements reflect a well-managed business with a promising outlook.

Income Statement

Computacenter has demonstrated strong revenue growth from 2019 to 2024, with a steady increase in gross profit margins from 13% to 15%. Although the EBIT and EBITDA margins have slightly fluctuated, they remain healthy. Net profit margins have improved from 2% to approximately 2.5% over the period. However, a slight decline in EBIT from 2023 to 2024 has been noted, which could indicate potential cost management challenges.

Balance Sheet

The company maintains a solid equity ratio of around 24% in 2024, which suggests a stable capital structure. The debt-to-equity ratio has improved over time, reaching approximately 0.17 in 2024, indicating decreasing leverage. Return on Equity has been relatively stable, with some minor fluctuations. The high cash position compared to debt provides flexibility but also signals a conservative approach to leverage.

Cash Flow

Free cash flow has grown consistently, showcasing an effective cash generation capability. The free cash flow to net income ratio indicates good conversion of profits to cash, with the operating cash flow to net income ratio being robust. However, the fluctuations in capital expenditures and investing cash flow require monitoring, as they might impact future free cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.96B	6.92B	6.47B	5.03B	5.44B
	Gross Profit
1.03B	1.04B	936.20M	860.20M	713.11M
	EBIT
237.90M	268.80M	258.00M	261.00M	215.72M
	EBITDA
268.20M	360.10M	347.70M	346.20M	296.81M
	Net Income Common Stockholders
170.80M	197.60M	182.80M	185.30M	153.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
489.60M	471.20M	275.10M	285.20M	309.84M
	Total Assets
3.37B	3.06B	3.28B	2.71B	2.40B
	Total Debt
136.90M	127.60M	157.90M	189.90M	258.67M
	Net Debt
-352.70M	-343.60M	-117.20M	-95.30M	-51.18M
	Total Liabilities
2.55B	2.11B	2.41B	1.97B	1.77B
	Stockholders Equity
810.20M	941.70M	865.70M	740.50M	627.80M
Cash Flow		Free Cash Flow
398.10M	375.50M	206.10M	192.00M	207.83M
	Operating Cash Flow
417.10M	410.60M	241.60M	222.30M	235.34M
	Investing Cash Flow
-38.20M	-39.40M	-62.70M	-25.30M	-55.94M
	Financing Cash Flow
-349.40M	-163.60M	-180.50M	-226.10M	-94.63M

Computacenter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2274.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CCC, the sentiment is Negative. The current price of 2274 is below the 20-day moving average (MA) of 2372.20, below the 50-day MA of 2317.76, and below the 200-day MA of 2369.65, indicating a bearish trend. The MACD of -31.41 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CCC.

Computacenter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMV	82 Outperform	£5.76B	30.46	256.58%	1.26%	7.02%	-0.37%
ULVR	78 Outperform	£120.23B	24.64	30.27%	3.08%	-0.76%	-12.83%
CCC	76 Outperform	£2.38B	14.73	19.50%	3.11%	0.61%	-9.17%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%

Computacenter Corporate Events

Computacenter Publishes 2024 Annual Report and Announces 2025 AGM

Computacenter plc has published its 2024 Annual Report and Accounts along with the Notice of its 2025 Annual General Meeting. These documents are now available to shareholders electronically, with printed copies accessible from the company’s registered office. The Annual General Meeting is scheduled for 15 May 2025 in London, marking an important event for stakeholders to discuss the company’s performance and future direction.

Spark’s Take on GB:CCC Stock

According to Spark, TipRanks’ AI Analyst, GB:CCC is a Outperform.

Computacenter’s overall stock score reflects strong financial performance and effective cash flow management, supporting a stable balance sheet with improving leverage ratios. Technical indicators show positive momentum without extreme conditions. The valuation is reasonable, supported by a moderate P/E ratio and attractive dividend yield. Corporate events further emphasize the firm’s financial strength and strategic alignment towards growth, though they are not separately weighted in this analysis.

To see Spark’s full report on GB:CCC stock, click here.

Computacenter Announces Vesting of CEO’s Deferred Bonus Plan Shares

Computacenter plc announced the vesting of a conditional award over Ordinary Shares for its CEO, Michael John Norris, under the 2017 Deferred Bonus Plan. This vesting, part of the 2022 Bonus Award, involved the automatic sale of shares to cover tax liabilities, reflecting the company’s ongoing commitment to aligning executive compensation with performance and shareholder interests.

Computacenter Announces Vesting of CEO’s Deferred Bonus Plan Shares

Computacenter plc announced the vesting of a conditional award over Ordinary Shares for its CEO, Michael John Norris, under the 2017 Deferred Bonus Plan. This vesting, part of the 2023 Bonus Award, involved the automatic sale of some shares to cover tax liabilities, reflecting the company’s ongoing commitment to structured executive compensation and compliance with market regulations.

Computacenter Grants Performance-Based Awards to Key Executives

Computacenter plc announced the granting of awards under its Performance Share Plan and Deferred Bonus Plan to key directors and personnel. These awards, structured as nil-cost options and conditional awards, are linked to performance criteria such as growth in earnings per share and services revenue. This move is part of Computacenter’s strategy to incentivize leadership and align their interests with company performance, potentially impacting its market positioning and stakeholder value.

Computacenter Reports Solid 2024 Performance Amid Market Challenges

Computacenter announced its 2024 full-year results, highlighting a solid performance despite challenging market conditions. The company reported a slight decline in gross invoiced income and operating profit compared to the previous year, but achieved record profitability in the second half of the year, driven by strong performance in North America and Germany. The company completed a £200m share buyback and increased its dividend, reflecting strong cash generation and a robust balance sheet. Looking ahead to 2025, Computacenter is optimistic about growth opportunities, particularly in North America, despite an uncertain macroeconomic environment.

Computacenter Reports Record H2 Performance Amid Challenging Market

Computacenter reported a challenging market backdrop in 2024, with a marginal revenue increase on a constant currency basis, driven by a strong performance in the second half of the year. The company achieved its most profitable half-year in history, despite some project delays in the US and UK. The completion of a £200m share buyback program and a strong cash position at year-end were noted. Looking forward, Computacenter anticipates continued progress in 2025, despite potential macroeconomic challenges in Europe and tax increases in the UK.