Computacenter (CCC) AI Stock Analysis

• Market Cap: £3.13B
• Dividend Yield: 2.38%
• Average Volume (3M): 256.63K
• Price to Earnings (P/E): 19.6
• 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: £3,087.50
• Price Target Upside: 3.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 3,459.00p ▲(15.92% 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

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 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 exhibits strong financial health with consistent revenue growth and efficient cash flow management. The company has maintained a stable balance sheet with improving leverage ratios, while also 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	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: 2984.00
• 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 2984 is above the 20-day moving average (MA) of 2958.30, above the 50-day MA of 2842.52, and above the 200-day MA of 2489.07, indicating a bullish trend. The MACD of 56.88 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 46.37 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	£3.13B	19.61	17.42%	2.38%	21.86%	0.86%
SCT	75 Outperform	£2.91B	21.77	41.77%	2.01%	51.50%	11.62%
FDM	74 Outperform	£143.88M	9.29	24.53%	14.06%	-27.01%	-49.07%
TRD	72 Outperform	£45.29M	23.79	44.27%	2.69%	30.01%	138.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£191.12M	77.42	1.35%	3.00%	-31.46%	297.44%

Computacenter Corporate Events

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.

Computacenter Reports Strong Q3 2025 Performance and Positive Outlook

Computacenter reported a strong performance in Q3 2025, with significant growth in North America and the UK, and a return to growth in Germany. Despite challenges in France, the company saw increased Technology Sourcing revenue and solid growth in Services revenue. The company maintains a strong balance sheet, supporting continued investment and acquisitions. Looking ahead, Computacenter remains optimistic about its full-year prospects, with a healthy order backlog and confidence in its long-term growth due to its integrated model and geographic diversity.

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.