Computacenter (CCC) AI Stock Analysis

• Market Cap: £2.90B
• Dividend Yield: 2.56%
• Average Volume (3M): 260.49K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.02
• 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: 265,426
• 30 Day Avg. Volume: 260,492
• 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: £2,751.43
• Price Target Upside: -0.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: 2,610.00p ▼(-5.98% Downside)

Computacenter's strong financial performance, characterized by consistent revenue growth and efficient cash flow management, is the primary driver of its stock score. The technical analysis indicates mixed momentum, with some positive signals. The valuation is reasonable, supported by a moderate P/E ratio and a solid dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth over several years suggests a robust market position and effective business strategy, enhancing long-term prospects.

Cash Flow Management

Strong cash flow management indicates the company's ability to fund operations and investments, supporting sustainable growth and financial stability.

Balance Sheet Health

A low and improving debt-to-equity ratio reflects prudent financial management, providing flexibility and reducing risk in economic downturns.

Negative Factors

EBIT Fluctuations

Fluctuations in EBIT may indicate challenges in cost management or operational efficiency, potentially impacting profitability if not addressed.

Capital Expenditure Fluctuations

Inconsistent capital expenditures can affect future free cash flows and growth, necessitating careful planning and resource allocation.

Profit Margin Pressure

While net margins have improved, fluctuating EBIT margins suggest potential pressure on profitability, which could affect long-term earnings growth.

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: 2776.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2776 is above the 20-day moving average (MA) of 2517.68, above the 50-day MA of 2383.09, and above the 200-day MA of 2311.47, indicating a bullish trend. The MACD of 117.35 indicates Negative momentum. The RSI at 78.66 is Negative, neither overbought nor oversold. The STOCH value of 91.92 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
CCC	75 Outperform	£2.90B	18.18	17.42%	2.56%	21.86%	0.86%
SCT	69 Neutral	£3.13B	24.97	47.63%	1.90%	10.75%	10.61%
TRD	67 Neutral	£53.13M	30.72	41.96%	1.97%	52.51%	―
FDM	65 Neutral	£151.09M	9.75	24.53%	16.54%	-27.01%	-49.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	53 Neutral	£216.30M	61.82	4.99%	2.65%	-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.