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Computacenter PLC (GB:CCC)
LSE:CCC

Computacenter (CCC) AI Stock Analysis

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GB

Computacenter

(LSE:CCC)

Rating:79Outperform
Price Target:
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
Financial Performance
Computacenter's FY24 results are a bit better than expected at the headline level.
Revenue Growth
Reported revenue is up 0.6% to £6.96bn versus a Refinitiv consensus of a decline to £6.65bn.
Negative Factors
Executive Changes
Christian Jehle has stepped down from his role as CFO by mutual agreement with the Company and with immediate effect.
Market Challenges
Computacenter was always facing a tough second half of 2024, and closing out December will be key.

Computacenter (CCC) vs. iShares MSCI United Kingdom ETF (EWC)

Computacenter Business Overview & Revenue Model

Company DescriptionComputacenter 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 MoneyComputacenter 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 shows strong financial health with consistent revenue growth and efficient cash flow management. Stable balance sheet and improving leverage ratios enhance profitability margins, despite some fluctuations in EBIT and investing activities.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.96B6.92B6.47B5.03B5.44B
Gross Profit
1.03B1.04B936.20M860.20M713.11M
EBIT
237.90M268.80M258.00M261.00M215.72M
EBITDA
268.20M360.10M347.70M346.20M296.81M
Net Income Common Stockholders
170.80M197.60M182.80M185.30M153.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
489.60M471.20M275.10M285.20M309.84M
Total Assets
3.37B3.06B3.28B2.71B2.40B
Total Debt
136.90M127.60M157.90M189.90M258.67M
Net Debt
-352.70M-343.60M-117.20M-95.30M-51.18M
Total Liabilities
2.55B2.11B2.41B1.97B1.77B
Stockholders Equity
810.20M941.70M865.70M740.50M627.80M
Cash FlowFree Cash Flow
398.10M375.50M206.10M192.00M207.83M
Operating Cash Flow
417.10M410.60M241.60M222.30M235.34M
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 Price2506.00
Price Trends
50DMA
2430.28
Positive
100DMA
2309.58
Positive
200DMA
2344.89
Positive
Market Momentum
MACD
44.68
Positive
RSI
54.45
Neutral
STOCH
26.98
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 2506 is above the 20-day moving average (MA) of 2503.70, above the 50-day MA of 2430.28, and above the 200-day MA of 2344.89, indicating a bullish trend. The MACD of 44.68 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CCC.

Computacenter Risk Analysis

Computacenter disclosed 5 risk factors in its most recent earnings report. Computacenter reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Computacenter Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCCC
79
Outperform
£2.63B16.2319.50%2.82%0.61%-9.17%
GBSCT
75
Outperform
£3.48B27.7847.63%1.54%10.75%10.61%
GBFDM
73
Outperform
£243.79M11.8728.48%13.00%-22.84%-49.60%
61
Neutral
$11.29B10.07-7.05%2.96%7.47%-10.75%
GBRCN
57
Neutral
£202.51M326.281.06%2.83%3.57%
GBFDP
56
Neutral
£543.46M-11.89%-22.83%-350.82%
GBTRD
48
Neutral
£47.91M60.0420.93%2.18%26.44%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CCC
Computacenter
2,506.00
-212.87
-7.83%
GB:FDM
FDM Group (Holdings)
223.00
-196.54
-46.85%
GB:FDP
FD Technologies
2,450.00
1,098.00
81.21%
GB:RCN
Redcentric
127.25
-20.25
-13.73%
GB:SCT
Softcat
1,747.00
104.22
6.34%
GB:TRD
Triad Group plc
275.00
3.56
1.31%

Computacenter Corporate Events

Executive/Board ChangesShareholder Meetings
Computacenter AGM: All Resolutions Passed Amid Shareholder Engagement
Neutral
May 15, 2025

Computacenter plc announced the successful passing of all resolutions at its Annual General Meeting held on May 15, 2025. The resolutions, which included the approval of the Directors’ Remuneration Policy and the re-election of several directors, were passed with significant shareholder support. However, the company noted that the vote on the Directors’ Remuneration Policy received slightly less than 80% approval, prompting further consultation with shareholders to understand their concerns. This engagement reflects Computacenter’s commitment to aligning its governance practices with shareholder expectations and maintaining transparency.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3085.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Other
Computacenter CEO Engages in Share Transactions Under Employee Plan
Neutral
May 13, 2025

Computacenter plc announced a transaction involving its CEO, Michael John Norris, who acquired and subsequently sold 2,967 ordinary shares. These transactions were part of the company’s all-employee 2019 Issue 23 5-year Sharesave Plan. The acquisition was made at 1011 pence per share, while the sale was executed at 2544 pence per share. This activity reflects internal financial movements and may influence stakeholders’ perceptions of the company’s stock valuation and executive confidence.

The most recent analyst rating on (GB:CCC) stock is a Buy with a £3085.00 price target. To see the full list of analyst forecasts on Computacenter stock, see the GB:CCC Stock Forecast page.

Business Operations and Strategy
Computacenter CEO Reduces Shareholding
Neutral
May 6, 2025

Computacenter plc announced that its CEO, Michael John Norris, has sold 5,702 shares of the company. Despite the sale, Norris retains a significant holding of 1,079,214 shares. This transaction may indicate strategic financial planning by the CEO, potentially impacting stakeholder perceptions and market dynamics.

Regulatory Filings and Compliance
Computacenter CEO Sells Significant Shareholding
Neutral
May 6, 2025

Computacenter plc announced that its CEO, Michael John Norris, sold 117,223 shares of the company on May 1, 2025. This transaction is part of the company’s regulatory disclosure requirements under the Market Abuse Regulation. The shares were sold at a price of 24.6839 GBP each, following the exercise of a nil-cost option under the Computacenter Performance Share Plan 2005. This move reflects a significant personal financial decision by the CEO, which may be of interest to shareholders and market analysts monitoring insider transactions.

Business Operations and StrategyFinancial Disclosures
Computacenter Reports Strong Q1 Performance with Positive Outlook
Positive
May 1, 2025

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.

Shareholder MeetingsFinancial Disclosures
Computacenter Publishes 2024 Annual Report and Announces 2025 AGM
Neutral
Apr 9, 2025

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.

Executive/Board Changes
Computacenter Announces Vesting of CEO’s Deferred Bonus Plan Shares
Neutral
Apr 2, 2025

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.

Executive/Board ChangesRegulatory Filings and Compliance
Computacenter Announces Vesting of CEO’s Deferred Bonus Plan Shares
Neutral
Mar 28, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Computacenter Grants Performance-Based Awards to Key Executives
Positive
Mar 26, 2025

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.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Computacenter Reports Solid 2024 Performance Amid Market Challenges
Positive
Mar 18, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.