tiprankstipranks
Trending News
More News >
Softcat (GB:SCT)
LSE:SCT

Softcat (SCT) AI Stock Analysis

Compare
67 Followers

Top Page

GB:SCT

Softcat

(LSE:SCT)

Select Model
Select Model
Select Model
Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
1,654.00p
▲(13.21% Upside)
Softcat's strong financial performance and positive corporate events are the most significant factors driving the score. However, technical indicators suggest caution due to bearish trends, and the valuation is moderate. The absence of recent earnings call data limits insights into management's current outlook.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust business expansion and effective market penetration, which can sustain long-term financial performance.
Cash Flow Generation
Effective cash generation enhances liquidity and financial flexibility, supporting ongoing investments and operational stability.
Low Leverage
Low leverage reduces financial risk and interest obligations, allowing more resources for growth initiatives and shareholder returns.
Negative Factors
Volatile Revenue Growth
Volatility in revenue growth can lead to unpredictability in financial performance, impacting strategic planning and investor confidence.
Slowing Free Cash Flow Growth
Slowing free cash flow growth may affect future liquidity and the ability to fund new projects or return capital to shareholders.
Relatively Low Equity Ratio
A relatively low equity ratio could limit financial resilience and flexibility, potentially affecting the company's ability to withstand economic downturns.

Softcat (SCT) vs. iShares MSCI United Kingdom ETF (EWC)

Softcat Business Overview & Revenue Model

Company DescriptionSoftcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers asset management, collaboration, connectivity, and device services. In addition, the company provides supply chain operations and virtual desktop and applications. Further, it offers lifecycle, modern management, and financial solutions. The company was incorporated in 1987 and is headquartered in Marlow, the United Kingdom.
How the Company Makes MoneySoftcat generates revenue through multiple streams, primarily by reselling software and hardware products from leading tech manufacturers, such as Microsoft, Cisco, and Dell. The company earns a significant portion of its income from software licensing agreements, where it acts as an intermediary between software developers and end-users. Additionally, Softcat provides managed services, cloud computing solutions, and IT consultancy, which contribute to its recurring revenue. Strategic partnerships with major vendors enhance its product offerings and expand its market reach, while a focus on customer service and long-term relationships fosters client loyalty and repeat business.

Softcat Financial Statement Overview

Summary
Softcat exhibits strong financial health with robust revenue growth, efficient operations, and solid cash flow generation. The company maintains a low leverage position, enhancing its financial stability. While revenue growth has been volatile in the past, the recent performance indicates a positive trajectory. Continued focus on improving equity ratios and maintaining cash flow growth will be key to sustaining long-term financial strength.
Income Statement
85
Very Positive
Softcat has demonstrated strong revenue growth with a 40.1% increase in the latest year, indicating robust business expansion. The gross profit margin has improved significantly over the years, reaching 33.6% in 2025. The net profit margin is healthy at 9.1%, reflecting efficient cost management. EBIT and EBITDA margins are also strong, showing operational efficiency. However, the revenue growth rate has been volatile in previous years, which could pose a risk.
Balance Sheet
78
Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.10, indicating low leverage and financial stability. Return on equity is impressive at 39.3%, showcasing effective use of shareholder funds. The equity ratio stands at 28.4%, suggesting a balanced capital structure. However, the relatively low equity ratio could be improved to enhance financial resilience.
Cash Flow
82
Very Positive
Softcat's cash flow performance is strong, with a 6.0% growth in free cash flow, indicating effective cash generation. The operating cash flow to net income ratio is 1.11, showing good cash conversion. The free cash flow to net income ratio is 1.02, reflecting efficient cash utilization. Despite these strengths, the growth rate of free cash flow has slowed compared to previous years, which may impact future liquidity.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.46B1.46B962.63M985.30M1.08B784.05M
Gross Profit491.91M490.73M417.75M372.31M326.65M276.06M
EBITDA184.47M190.74M166.47M147.02M143.61M124.24M
Net Income133.01M133.01M119.04M112.03M110.41M96.19M
Balance Sheet
Total Assets1.19B1.19B780.75M647.72M672.06M497.36M
Cash, Cash Equivalents and Short-Term Investments182.28M182.28M158.45M122.62M97.32M101.72M
Total Debt35.19M35.19M10.36M9.76M6.67M8.30M
Total Liabilities853.14M853.14M482.71M396.28M460.96M318.21M
Stockholders Equity338.78M338.78M298.04M251.44M211.10M179.14M
Cash Flow
Free Cash Flow132.60M136.28M120.27M102.79M78.89M85.01M
Operating Cash Flow144.38M148.06M115.61M106.04M84.11M91.48M
Investing Cash Flow-19.68M-23.37M-1.35M-3.25M-5.22M-6.46M
Financing Cash Flow-98.15M-98.15M-78.42M-77.28M-86.86M-63.43M

Softcat Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1461.00
Price Trends
50DMA
1442.25
Positive
100DMA
1496.22
Negative
200DMA
1569.74
Negative
Market Momentum
MACD
4.31
Negative
RSI
54.96
Neutral
STOCH
73.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SCT, the sentiment is Positive. The current price of 1461 is above the 20-day moving average (MA) of 1432.40, above the 50-day MA of 1442.25, and below the 200-day MA of 1569.74, indicating a neutral trend. The MACD of 4.31 indicates Negative momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SCT.

Softcat Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£3.30B20.6917.42%2.43%21.86%0.86%
75
Outperform
£2.91B21.9341.77%2.05%51.50%11.62%
74
Outperform
£149.13M9.6324.53%13.93%-27.01%-49.07%
72
Outperform
£42.70M22.4244.27%2.69%30.01%138.65%
69
Neutral
£54.86M39.5210.36%20.40%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
£191.16M77.421.35%3.01%-31.46%297.44%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SCT
Softcat
1,461.00
27.81
1.94%
GB:CCC
Computacenter
3,148.00
1,116.92
54.99%
GB:FDM
FDM Group (Holdings)
136.40
-104.12
-43.29%
GB:RCN
Redcentric
120.00
-2.05
-1.68%
GB:TRD
Triad Group plc
245.00
-91.45
-27.18%
GB:MTEC
Made Tech Group PLC
36.75
11.75
47.00%

Softcat Corporate Events

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Softcat Cancels 84,600 Shares Under Ongoing Buy-Back Programme
Positive
Jan 12, 2026

Softcat plc has repurchased 84,600 of its ordinary shares on the London Stock Exchange through J.P. Morgan Securities as part of the share buy-back programme launched on 8 January 2026, paying a weighted average price of 1,482.9868p per share. The company will cancel these shares, reducing its issued share capital to 199,970,216 ordinary shares with voting rights and no treasury shares, a move that marginally enhances earnings per share and may be seen as a signal of confidence in the company’s valuation while providing shareholders with a revised denominator for regulatory disclosure thresholds.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
Softcat Cancels 56,402 Shares Under Ongoing Buy-Back Programme
Positive
Jan 9, 2026

Softcat has repurchased 56,402 of its ordinary shares on the London Stock Exchange via J.P. Morgan Securities as part of the share buy-back programme launched on 8 January 2026, at prices between 1,465p and 1,473p per share and a weighted average price of 1,471.1620p. The company plans to cancel these shares, reducing its issued share capital to 200,053,009 ordinary shares with voting rights and no treasury shares, a move that marginally enhances earnings per share and clarifies the denominator investors should use for regulatory disclosure thresholds under the FCA’s rules.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyStock Buyback
Softcat Cancels 42,867 Shares After Launching New Buy-Back Programme
Positive
Jan 8, 2026

Softcat plc has continued its capital management strategy by repurchasing 42,867 of its ordinary shares on 8 January 2026 through J.P. Morgan Securities as part of a newly announced share buy-back programme, at prices ranging between 1,437p and 1,464p and a weighted average of 1,456.063p. The company intends to cancel these shares, reducing its issued share capital to 200,109,411 ordinary shares with full voting rights, a move that marginally increases existing shareholders’ proportional ownership and may signal management’s confidence in the company’s valuation and cash-generative capacity.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Regulatory Filings and Compliance
Softcat CEO and CFO Acquire Shares Under Company Incentive Plan
Neutral
Jan 8, 2026

Softcat plc has announced that its chief executive Graham Charlton and chief financial officer Katy Mecklenburgh have each acquired a small number of ordinary shares in the company through its Share Incentive Plan. The trades, conducted on the London Stock Exchange on 7 January 2026 and disclosed under UK Market Abuse Regulation, reflect routine participation by senior management in the firm’s employee share scheme, signalling continued alignment of executive interests with those of shareholders but representing an immaterial change to overall ownership levels.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyStock Buyback
Softcat Launches £45 Million Share Buyback Programme
Positive
Jan 8, 2026

Softcat has launched a share buyback programme of up to £45 million to repurchase and cancel its ordinary shares, starting on 8 January 2026 and expected to complete in the first half of the year. The initiative, conducted via a non-discretionary agreement with J.P. Morgan Securities plc under pre-set parameters and existing shareholder authorities, underscores the board’s confidence in the company’s long‑term prospects and disciplined capital allocation, signalling continued strength in cash generation and balance sheet resilience for shareholders.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Regulatory Filings and Compliance
Softcat Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 2, 2026

Softcat plc has announced that, as of 31 December 2025, its issued share capital comprises 200,149,223 ordinary shares of £0.0005 each, all carrying voting rights and with no shares held in treasury. This disclosure sets the official total number of shares and voting rights at 200,149,223, providing shareholders and the market with the denominator needed to assess and report changes in significant holdings under the UK Financial Conduct Authority’s Disclosure and Transparency Rules, thereby supporting transparency and regulatory compliance in the company’s shareholder base.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Softcat Increases CEO Long-Term Incentive Award After Remuneration Policy Approval
Neutral
Dec 22, 2025

Softcat has granted an additional nil-cost share option award under its Long Term Incentive Plan to CEO and PDMR Graham Charlton, following shareholder approval of the company’s 2025 Remuneration Policy at the recent AGM. The top-up award of 11,977 ordinary shares increases Charlton’s total LTIP opportunity from 200% to 225% of base pay, with vesting dependent on three-year performance targets tied to relative total shareholder return against the FTSE 350 and underlying EPS outcomes for FY 2028, and options normally vesting in November 2028 and remaining exercisable until November 2035, underscoring Softcat’s emphasis on pay-for-performance alignment for senior leadership.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Executive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Softcat plc Reports Successful AGM with All Resolutions Passed
Positive
Dec 16, 2025

Softcat plc announced that all resolutions at its Annual General Meeting on December 15, 2025, were passed with the requisite majority. Key resolutions included the approval of financial statements, directors’ remuneration, and the declaration of dividends. The re-election of several directors and the appointment of Ernst & Young LLP as auditors were also confirmed. This successful AGM reflects strong shareholder support and positions Softcat for continued growth and stability in the IT infrastructure market.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Softcat CEO Exercises Nil-Cost Options Under Incentive Plans
Neutral
Dec 15, 2025

Softcat plc announced the exercise of nil-cost options by its CEO, Graham Charlton, under the company’s Long Term Incentive Plan (LTIP) and Annual and Deferred Bonus Plan (DBP). The transactions involved the sale of a portion of shares to cover tax liabilities, with the remaining shares retained by the CEO. This move reflects the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Executive/Board Changes
Softcat Chairman Exercises Incentive Plan Options
Neutral
Dec 12, 2025

Softcat plc announced the exercise of nil-cost options by a person discharging managerial responsibilities, specifically the Chairman, Graeme Watt. The exercise involved the Softcat Long Term Incentive Plan and the Annual and Deferred Bonus Plan, with a portion of shares sold to cover tax liabilities and the remainder retained. This transaction highlights the company’s ongoing commitment to rewarding its executives through incentive plans, potentially impacting its market perception and stakeholder confidence.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Other
Softcat CFO Purchases Significant Shares, Signaling Confidence
Positive
Dec 10, 2025

Softcat plc announced a transaction involving the purchase of 20,530 Ordinary Shares by Kathryn Mecklenburgh, the Chief Financial Officer, on December 8, 2025. This transaction, conducted outside a trading venue, reflects managerial confidence in the company’s performance and potential, potentially impacting investor sentiment and market perception.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and Strategy
Softcat Executives Invest in Company Shares, Strengthening Stakeholder Confidence
Positive
Dec 10, 2025

Softcat plc announced transactions involving its CEO, Graham Charlton, and CFO, Katy Mecklenburgh, who both purchased partnership shares under the company’s Share Incentive Plan. These transactions, conducted on the London Stock Exchange, reflect the executives’ commitment to the company’s growth and align their interests with those of the shareholders, potentially boosting stakeholder confidence.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1654.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Softcat plc Announces Executive Incentive Awards Under LTIP
Positive
Nov 28, 2025

Softcat plc announced the granting of nil-cost options under its Long Term Incentive Plan (LTIP) to key executives, including CEO Graham Charlton and CFO Katy Mecklenburgh. These awards are contingent on performance metrics like Total Shareholder Return and Earnings per Share over a three-year period, with the potential to significantly increase executive compensation based on company performance. The move underscores Softcat’s commitment to aligning executive incentives with shareholder interests and maintaining competitive leadership compensation packages.

The most recent analyst rating on (GB:SCT) stock is a Sell with a £1450.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Softcat Grants Nil-Cost Options to Key Executives
Neutral
Nov 28, 2025

Softcat plc has announced the granting of nil-cost options under its Annual and Deferred Bonus Plan to key executives, Graham Charlton and Katy Mecklenburgh. These options, which are contingent on continued employment, aim to align management incentives with company performance and are set to vest in 2028, potentially impacting the company’s long-term strategic goals and stakeholder interests.

The most recent analyst rating on (GB:SCT) stock is a Sell with a £1450.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Softcat PLC Announces Block Listing Application for Share Issuance
Neutral
Nov 25, 2025

Softcat PLC has applied for a block listing of 1,250,000 ordinary shares on the UK Listing Authority’s Official List, with admission expected on 27 November 2025. These shares are linked to the company’s Long Term Incentive Plan and Annual and Deferred Bonus Plan, allowing participants to receive shares upon the vesting of awards, potentially impacting the company’s equity structure and stakeholder interests.

The most recent analyst rating on (GB:SCT) stock is a Sell with a £1450.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Softcat Reports Strong Q1 2026 Growth
Positive
Nov 18, 2025

Softcat plc reported strong double-digit growth in both gross profit and underlying operating profit for the first quarter ending 31 October 2025. The company’s success is attributed to broad-based growth across technology areas and customer segments, with continued demand reflecting its unique culture and strategic investments. This performance aligns with the company’s previous outlook and highlights its ability to capture significant growth opportunities in a large and expanding market.

The most recent analyst rating on (GB:SCT) stock is a Hold with a £1548.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and Strategy
Softcat Executives Acquire Partnership Shares, Reinforcing Stakeholder Confidence
Positive
Nov 11, 2025

Softcat plc announced transactions involving its CEO, Graham Charlton, and CFO, Katy Mecklenburgh, who have both purchased partnership shares under the company’s Share Incentive Plan. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning its leadership’s interests with those of its shareholders, potentially strengthening stakeholder confidence in the company’s management and future direction.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1900.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Softcat Publishes 2025 Annual Report and Announces AGM Details
Neutral
Nov 5, 2025

Softcat has released its 2025 Annual Report and Accounts along with the Notice of its Annual General Meeting, which will take place on December 15, 2025. The documents are available on the company’s website and have been submitted to the Financial Conduct Authority for public inspection. The report includes key information on the principal risks and uncertainties faced by the company, the Directors’ responsibility statement, and related party transactions, providing stakeholders with comprehensive insights into the company’s financial health and strategic direction.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1900.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Regulatory Filings and Compliance
Softcat plc Announces Total Voting Rights and Share Capital Update
Neutral
Nov 3, 2025

Softcat plc has announced its total voting rights and share capital as of October 31, 2025, which consists of 199,947,510 ordinary shares with voting rights. This disclosure is in accordance with the FCA’s Disclosure Guidance and Transparency Rules, allowing shareholders to determine their notification requirements regarding their interests in the company.

The most recent analyst rating on (GB:SCT) stock is a Buy with a £1900.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Softcat Achieves Record Performance and Strategic Growth in FY2025
Positive
Oct 22, 2025

Softcat plc reported another year of record performance for the fiscal year ending July 31, 2025, with significant growth across key financial metrics. The company achieved a 26.8% increase in gross invoiced income and an 18.3% rise in gross profit, driven by strong performance in its base business and larger solutions projects. Softcat also completed its first acquisition, purchasing Oakland, a data and AI consultancy, to enhance its capabilities in a growing market segment. The company’s strategic investments in IT, data, digital projects, and new systems aim to support future growth, while maintaining a strong cash position and increasing dividends for shareholders. Looking ahead, Softcat is well-positioned to continue its growth trajectory by capturing additional market share and delivering on large projects, with expectations of first-half weighted operating profit growth in FY2026.

The most recent analyst rating on (GB:SCT) stock is a Sell with a £1400.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Dec 07, 2025