Computacenter (CCC) AI Stock Analysis

• Market Cap: £2.59B
• Dividend Yield: 2.86%
• Average Volume (3M): 220.65K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.04
• Revenue Growth: 0.61%
• EPS Growth: -9.17%
• Country: UK
• Employees: 20,074
• Sector: Technology
• Sector Strength: 69
• Industry: Information Technology Services
• EPS (TTM): 1.59
• Shares Outstanding: 106,243,935
• 10 Day Avg. Volume: 128,420
• 30 Day Avg. Volume: 220,647
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: £2,830.00
• Price Target Upside: 13.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Computacenter's strong financial performance, robust market positioning through strategic corporate actions, and balanced valuation metrics support a positive stock outlook. While technical indicators are neutral, the company's consistent revenue growth and cash flow management indicate a stable and promising future performance.

Positive Factors

Earnings

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

Order Backlog

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

Revenue Performance

Reported revenue is up 0.6% to £6.96bn vs. Refinitiv consensus of -4.0% to £6.65bn.

Negative Factors

Financial Outlook

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

Management Change

Computacenter has announced that Christian Jehle has stepped down from his role as CFO by mutual agreement with the Company and with immediate effect.

Year-End Challenges

Computacenter was always facing a tough 2H24 and, as is often the way for a technology company, closing out December will be key.

Computacenter Business Overview & Revenue Model

Company Description

Computacenter (CCC) is a leading independent provider of IT infrastructure services, operating across multiple sectors including government, financial services, and telecommunications. The company offers a comprehensive range of services that include IT strategy consulting, systems integration, managed services, and technology sourcing. Computacenter helps organizations optimize their IT operations, reduce costs, and enhance efficiency through tailored solutions and expert support.

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: Positive
• Last Price: 2500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2500 is above the 20-day moving average (MA) of 2312.20, above the 50-day MA of 2347.40, and above the 200-day MA of 2351.19, indicating a bullish trend. The MACD of 24.20 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 92.97 is Negative, 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
ULVR	80 Outperform	£119.20B	24.43	30.27%	3.13%	-0.76%	-12.83%
CCC	79 Outperform	£2.59B	15.98	19.50%	2.86%	0.61%	-9.17%
RMV	78 Outperform	£5.73B	30.31	256.58%	1.27%	7.02%	-0.37%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%

Computacenter Corporate Events

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.

Spark’s Take on GB:CCC Stock

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

Computacenter exhibits strong financial performance with stable revenue and cash flow growth, complemented by a solid balance sheet. Technical trends are neutral, with valuation metrics indicating a balanced outlook. Corporate events, including executive incentives and share buybacks, further enhance the company’s market position.

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

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.