Computacenter (CCC) AI Stock Analysis

• Market Cap: £3.54B
• Dividend Yield: 2.43%
• Average Volume (3M): 256.63K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.05
• 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: £3,490.00
• Price Target Upside: 6.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 3,849.00p ▲(17.06% Upside)

Computacenter's overall stock score reflects its strong financial performance and positive corporate events, which are the most significant factors. Technical analysis shows a strong trend, though caution is advised due to overbought signals. Valuation is moderate, providing a balanced risk-reward profile.

Positive Factors

Sustained Revenue Growth

Computacenter has delivered sustained top-line expansion (strong revenue growth 2019–2024 and a 21.9% growth metric), reflecting durable demand for IT infrastructure and digital transformation services. Persistent revenue momentum supports scale benefits, broadened client penetration and longer-term contract opportunities.

Consistent Free Cash Flow Generation

The company shows steady free cash flow growth and strong operating cash conversion, indicating reliable internal funding for reinvestment, dividends and M&A. Durable cash generation enhances financial flexibility and reduces reliance on external financing over a multi-quarter horizon.

Recurring Services & Strong Vendor Partnerships

A business mix focused on managed services and long-term consulting contracts, combined with deep vendor relationships (Cisco, Microsoft, Dell), creates recurring revenue streams, preferential supply access and technical differentiation that support sustainable competitive advantage and client stickiness.

Negative Factors

Thin Net Profit Margins

Absolute net margins remain low (~2–2.5%), leaving limited buffer against cost inflation or pricing pressure. This structural margin thinness constrains retained earnings, limits reinvestment capacity and makes profitability sensitive to cyclical hardware sales or one-off cost items over the medium term.

Exposure to Lower‑Margin Hardware Resale

Significant reliance on hardware sourcing and value‑added resale ties revenue to cyclical, lower‑margin product flows and vendor pricing. This reduces overall margin resilience versus pure‑service peers and limits pricing power, making long‑term profitability more sensitive to vendor terms and hardware cycles.

Profitability Volatility & Investing Fluctuations

A modest EBIT decline and variable capital/existing investing patterns signal operational and allocation inconsistency. Fluctuating investing cash flows can impair predictable free cash flow trajectories and make earnings performance more volatile, complicating medium‑term planning and margin sustainability.

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 primarily through its IT services and solutions, which are categorized into several key streams. These include hardware sales, software licensing, managed services, and consulting services. The company earns money by acting as a value-added reseller of IT products from major vendors, delivering tailored solutions to clients, and providing ongoing support and maintenance services. Significant partnerships with leading technology providers, such as Cisco, Microsoft, and Dell, enhance its offerings and enable Computacenter to leverage vendor resources for competitive pricing and innovative solutions. Additionally, the company's managed services and consulting practices contribute to recurring revenue, ensuring a stable income flow from long-term client engagements.

Computacenter Financial Statement Overview

Summary

Computacenter shows strong financial health with consistent revenue growth and efficient cash flow management. The balance sheet is stable with improving leverage ratios, and profitability margins have been enhanced over time. However, slight fluctuations in EBIT and investing activities require attention.

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	363.00M	349.70M	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: 3288.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3288 is above the 20-day moving average (MA) of 3218.60, above the 50-day MA of 3072.40, and above the 200-day MA of 2626.49, indicating a bullish trend. The MACD of 83.03 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.51 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	78 Outperform	£3.54B	22.19	17.42%	2.43%	21.86%	0.86%
SCT	75 Outperform	£2.85B	21.66	41.77%	2.05%	51.50%	11.62%
TRD	72 Outperform	£50.72M	26.62	44.27%	2.69%	30.01%	138.65%
MTEC	69 Neutral	£58.97M	42.74	10.36%	―	20.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£190.36M	77.10	1.35%	3.01%	-31.46%	297.44%
TPX	50 Neutral	£21.70M	-2.83	-17.47%	―	-5.84%	55.30%

Computacenter Corporate Events

Computacenter Beats 2025 Expectations, Bolstered by North America Growth and AgreeYa Deal

Computacenter reported a significantly better-than-expected performance for 2025, with gross invoiced income up 32% in constant currency, driven by a 38% surge in Technology Sourcing and modest growth in Services, where strong Professional Services revenue offset a slight decline in Managed Services. The group highlighted particularly robust execution in North America and a recovery in German public sector demand, while acknowledging continued challenges in France, and now expects adjusted profit before tax of at least £270m alongside an exceptionally strong year-end net funds position of around £600m. The recent acquisition of US-focused professional services firm AgreeYa Solutions, funded from existing cash, underscores Computacenter’s push to deepen its enterprise services reach in North America, and, supported by a strong order backlog and continued appetite for targeted deals, the company anticipates further strategic and financial progress in 2026 despite macroeconomic uncertainty and hardware supply constraints.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3381.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter Buys AgreeYa to Boost North American and India Services Footprint

Computacenter has agreed to acquire US-based AgreeYa Solutions Inc and the assets of AgreeYa India for up to $120 million, in a deal that significantly expands its professional services footprint in North America and deepens its capabilities in India. AgreeYa, a 26-year-old technology solutions partner with more than 600 staff in the US and over 700 in India, is expected to generate around $120 million in revenue and $14 million in adjusted EBITDA in 2025, and the transaction, funded from existing cash, is expected to be immediately earnings accretive. The acquisition bolsters Computacenter’s offerings in cloud, data, automation, AI, digital engineering, modern workplace and IT staffing, lifting its annualised North American professional services revenue to more than $350 million and strengthening its European operations via India-based expertise, while existing AgreeYa leadership will remain in place as the business is integrated into Computacenter’s US and India operations.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3459.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Computacenter CFO Granted Share Options Under 2025 Scheme

Computacenter plc announced that its Chief Financial Officer, Keith Anthony Mortimer, has been granted options over ordinary shares under the Computacenter UK 2025 Sharesave Scheme. These options, priced at £22.12, can be exercised between December 2030 and May 2031, and are not contingent on performance criteria. This move is part of the company’s strategy to incentivize its leadership and align their interests with shareholders, potentially impacting the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3300.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.