Computacenter (CCC) AI Stock Analysis

• Market Cap: £2.40B
• Dividend Yield: 4.14%
• Average Volume (3M): 139.80K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.04
• Revenue Growth: 0.61%
• EPS Growth: -9.17%
• Country: UK
• Employees: 20,074
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 1.07
• Shares Outstanding: 106,243,935
• 10 Day Avg. Volume: 137,029
• 30 Day Avg. Volume: 139,803
• PEG Ratio: 8.02
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.55
• 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: £2,916.67
• Price Target Upside: 27.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: 2,602.00p ▲(13.72%Upside)

Computacenter's financial performance and recent corporate events positively impact the stock score, reflecting strong revenue growth and a positive business outlook. However, the technical analysis indicates bearish market momentum, which reduces the overall score. The valuation is fair with moderate income potential.

Positive Factors

Earnings

Computacenter's FY24 results are a bit better than expected at the headline level.

Financial Performance

The year-end product order backlog is up 116% year over year in constant currency.

Negative Factors

Investor Expectations

FY24 was always a tough ask, and investors will not be surprised to see numbers come in at the low end of the range.

Market Demand

Bechtle suggests that German demand remains soft, which could also affect Computacenter.

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 through a combination of service-based revenue streams and sales of IT hardware and software. Its key revenue sources include managed services, which involve long-term contracts for IT infrastructure management and support, and professional services, encompassing consulting and project-based engagements. Additionally, the company generates significant revenue from reselling IT hardware and software products from major technology manufacturers. Strategic partnerships with leading technology vendors also play a crucial role in its earnings, allowing Computacenter to offer a wide range of products and solutions to its clients. The company's ability to adapt to customer needs and provide tailored solutions further enhances its revenue potential.

Computacenter Financial Statement Overview

Summary

Computacenter shows strong financial health with consistent revenue growth and efficient cash flow management. Stable balance sheet and improving leverage ratios enhance profitability margins, despite some fluctuations in EBIT and investing activities.

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
EBITDA	268.20M	360.10M	347.70M	346.20M	296.81M
Net Income	170.80M	197.60M	182.80M	185.30M	153.80M
Balance Sheet
Total Assets	3.37B	3.06B	3.28B	2.71B	2.40B
Cash, Cash Equivalents and Short-Term Investments	489.60M	471.20M	275.10M	285.20M	309.84M
Total Debt	136.90M	127.60M	157.90M	189.90M	258.67M
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: 2288.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2288 is below the 20-day moving average (MA) of 2497.50, below the 50-day MA of 2489.35, and below the 200-day MA of 2299.48, indicating a bearish trend. The MACD of -50.57 indicates Positive momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 9.53 is Positive, 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
FDM	73 Outperform	£237.78M	11.58	28.48%	5.75%	-22.84%	-49.60%
CCC	67 Neutral	£2.40B	14.82	19.50%	4.14%	0.61%	-9.17%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
SCT	62 Neutral	£3.30B	26.35	47.63%	0.54%	10.75%	10.61%
RCN	57 Neutral	£197.17M	317.95	1.06%	3.87%	3.57%	―
FDP	56 Neutral	£541.25M	―	-11.89%	―	-22.83%	-350.82%
TRD	48 Neutral	£52.26M	30.21	41.96%	2.67%	26.44%	―

Computacenter Corporate Events

Computacenter Grants Share Options to CEO Under 2025 Plan

Computacenter plc has announced the grant of nil-cost options over ordinary shares to its CEO, Michael John Norris, as part of the Computacenter Share Plan 2025. This award is subject to performance assessments over a four-year period, focusing on financial health, strategic priorities, and risk management, with a one-year holding period following vesting. This move is part of the company’s strategy to align executive incentives with long-term business performance and shareholder value.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3000.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter AGM: All Resolutions Passed Amid Shareholder Engagement

Computacenter plc announced the successful passing of all resolutions at its Annual General Meeting held on May 15, 2025. The resolutions, which included the approval of the Directors’ Remuneration Policy and the re-election of several directors, were passed with significant shareholder support. However, the company noted that the vote on the Directors’ Remuneration Policy received slightly less than 80% approval, prompting further consultation with shareholders to understand their concerns. This engagement reflects Computacenter’s commitment to aligning its governance practices with shareholder expectations and maintaining transparency.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3085.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter CEO Engages in Share Transactions Under Employee Plan

Computacenter plc announced a transaction involving its CEO, Michael John Norris, who acquired and subsequently sold 2,967 ordinary shares. These transactions were part of the company’s all-employee 2019 Issue 23 5-year Sharesave Plan. The acquisition was made at 1011 pence per share, while the sale was executed at 2544 pence per share. This activity reflects internal financial movements and may influence stakeholders’ perceptions of the company’s stock valuation and executive confidence.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3085.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter CEO Reduces Shareholding

Computacenter plc announced that its CEO, Michael John Norris, has sold 5,702 shares of the company. Despite the sale, Norris retains a significant holding of 1,079,214 shares. This transaction may indicate strategic financial planning by the CEO, potentially impacting stakeholder perceptions and market dynamics.

Computacenter CEO Sells Significant Shareholding

Computacenter plc announced that its CEO, Michael John Norris, sold 117,223 shares of the company on May 1, 2025. This transaction is part of the company’s regulatory disclosure requirements under the Market Abuse Regulation. The shares were sold at a price of 24.6839 GBP each, following the exercise of a nil-cost option under the Computacenter Performance Share Plan 2005. This move reflects a significant personal financial decision by the CEO, which may be of interest to shareholders and market analysts monitoring insider transactions.

Computacenter Reports Strong Q1 Performance with Positive Outlook

Computacenter reported a strong performance in the first quarter of 2025, with increased revenues in Group Technology Sourcing and Professional Services, particularly driven by growth in North America and the UK. Despite a slight decline in Managed Services revenue, the company’s overall outlook remains positive, with a healthy order backlog and no direct exposure to tariffs. The company is well-positioned to gain market share amid global uncertainties, leveraging its strengths in technology sourcing, professional services, and managed services.

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.