Computacenter (CCC) AI Stock Analysis

• Market Cap: £2.87B
• Dividend Yield: 2.62%
• Average Volume (3M): 256.63K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.09
• Revenue Growth: 21.86%
• EPS Growth: 0.86%
• Country: UK
• Employees: 20,074
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.47
• Shares Outstanding: 106,243,935
• 10 Day Avg. Volume: 181,886
• 30 Day Avg. Volume: 256,633
• PEG Ratio: -1.15
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 5.90
• 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: £2,760.00
• Price Target Upside: 2.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: 3,013.00p ▲(11.35% Upside)

Computacenter's strong financial performance and stable valuation metrics are the primary drivers of its stock score. The technical analysis indicates a positive trend, although caution is advised due to potential overbought conditions. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth over several years indicates a robust business model and expanding market presence, supporting long-term stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Profitability Margins

Improving profitability margins reflect operational efficiency and pricing power, contributing to sustained earnings growth and competitive advantage.

Negative Factors

EBIT Fluctuations

Fluctuations in EBIT may signal potential cost management challenges, which could affect profitability and require strategic adjustments.

Capital Expenditure Fluctuations

Inconsistent capital expenditures can impact future free cash flows and may indicate challenges in aligning investment with growth opportunities.

Debt Management

While leverage is decreasing, maintaining a conservative approach may limit growth potential if not balanced with strategic investments.

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 generates revenue through a diversified model that includes several key streams. Primarily, the company earns money from IT services and consulting, where they provide expertise in designing, implementing, and managing IT systems. Additionally, Computacenter makes significant revenue from the sale of hardware and software products, acting as a reseller for leading technology vendors. Managed services, which involve ongoing support and maintenance for clients' IT infrastructures, also contribute substantially to their earnings. The company has established strategic partnerships with major technology providers such as Cisco, Microsoft, and Dell, allowing them to offer a wide range of products and services tailored to client needs. Additionally, Computacenter's ability to leverage its expertise and scale in the IT market enables it to attract large enterprise clients, further driving revenue growth.

Computacenter Financial Statement Overview

Summary

Computacenter shows strong financial health with consistent revenue growth and efficient cash flow management. The company maintains a stable balance sheet with improving leverage ratios and enhanced 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.86B	6.96B	6.92B	6.47B	5.03B	5.44B
Gross Profit	814.90M	1.03B	1.04B	936.20M	860.20M	713.11M
EBITDA	221.90M	268.20M	360.10M	347.70M	346.20M	296.81M
Net Income	135.10M	170.80M	197.60M	182.80M	185.30M	153.80M
Balance Sheet
Total Assets	3.05B	3.37B	3.06B	3.28B	2.71B	2.40B
Cash, Cash Equivalents and Short-Term Investments	302.00M	489.60M	471.20M	275.10M	285.20M	309.84M
Total Debt	186.60M	136.90M	127.60M	157.90M	189.90M	258.67M
Total Liabilities	2.20B	2.55B	2.11B	2.41B	1.97B	1.77B
Stockholders Equity	842.20M	810.20M	941.70M	865.70M	740.50M	627.80M
Cash Flow
Free Cash Flow	317.60M	398.10M	375.50M	206.10M	192.00M	207.83M
Operating Cash Flow	332.80M	417.10M	410.60M	241.60M	222.30M	235.34M
Investing Cash Flow	-25.85M	-38.20M	-39.40M	-62.70M	-25.30M	-55.94M
Financing Cash Flow	-318.20M	-349.40M	-163.60M	-180.50M	-226.10M	-94.63M

Computacenter Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2706.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2706 is below the 20-day moving average (MA) of 2706.10, above the 50-day MA of 2500.55, and above the 200-day MA of 2356.52, indicating a neutral trend. The MACD of 53.03 indicates Positive momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CCC.

Computacenter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCC	―	£2.87B	17.95	17.42%	2.62%	21.86%	0.86%
FDM	―	£140.81M	9.09	24.53%	14.36%	-27.01%	-49.07%
SCT	―	£3.25B	24.50	41.77%	1.90%	51.50%	11.45%
TRD	―	£51.39M	29.71	41.96%	2.03%	52.51%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	―	£199.08M	56.82	4.99%	2.88%	-17.17%	―

Computacenter Corporate Events

Computacenter Reports Strong H1 2025 Results with Significant Growth in North America

Computacenter announced its unaudited half-year results for 2025, highlighting a 28.5% increase in revenue and a 24.9% rise in gross invoiced income compared to the previous year. The company experienced significant growth in North America, which accounted for 44% of its adjusted operating profit, and saw a return to growth in the UK. However, challenges were noted in Germany and France due to subdued public sector activity. Despite these challenges, Computacenter expanded its customer base and maintained a strong order backlog, positioning itself for continued growth. The company also increased its interim dividend by 1.3%, reflecting its commitment to shareholder returns.

The most recent analyst rating on (GB:CCC) stock is a Hold with a £24.25 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter Appoints New CFO to Drive Growth and Efficiency

Computacenter has appointed Keith Mortimer as Chief Financial Officer and Executive Director, effective September 1, 2025. Mortimer, who has been with the company since 1999, has held various senior finance and commercial roles, contributing significantly to the company’s financial management and systems implementation. His appointment is expected to support Computacenter’s growth ambitions and enhance operational efficiency and customer experience through substantial investments in systems and processes.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £2700.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter Director Transfers Shares to Charity

Philip Hulme, a Non-Executive Director of Computacenter, transferred 260,000 ordinary shares to The Hadley Trust, a charitable organization where he serves as a trustee. This transaction, which was conducted for nil consideration, represents 0.2% of the company’s voting rights, impacting Hulme’s and the trust’s shareholdings in Computacenter.

The most recent analyst rating on (GB:CCC) stock is a Hold with a £2550.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter Reports Strong H1 2025 Revenue Growth Amid Challenges in Europe

Computacenter reported strong revenue growth for the first half of 2025, primarily driven by its Technology Sourcing business, with notable performances in North America and the UK. However, the company faced challenges in Germany and France due to political changes affecting public sector activities. Despite a decrease in net interest income following a share buyback, the company maintains a strong balance sheet and anticipates a healthy product order backlog, positioning it well for the second half of the year. While geopolitical and macroeconomic uncertainties persist, Computacenter expects some recovery in Germany’s public sector activity, though France remains challenging.

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.