Softcat (GB:SCT)
LSE:SCT
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Softcat
(LSE:SCT)
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Rating:75Outperform
Price Target:
1,866.00 p
▲(39.57% Upside)
Action:Upgraded
Date:12/07/25
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 & Margin Expansion
Recent year revenue growth of 40.1% alongside a 33.6% gross margin and 9.1% net margin indicates the business can scale sales while preserving healthy unit economics. Durable margin improvement supports reinvestment in services and recurring revenue growth over the medium term.
Negative Factors
Revenue Growth Volatility
Historical volatility in revenue growth undermines predictability of cash flows and complicates multi-period planning. For a reseller/services model, project timing and large deal cadence can create lumpy results, increasing execution risk for margin and resource allocation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Expansion
Recent year revenue growth of 40.1% alongside a 33.6% gross margin and 9.1% net margin indicates the business can scale sales while preserving healthy unit economics. Durable margin improvement supports reinvestment in services and recurring revenue growth over the medium term.
Read all positive factors
Softcat (SCT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.29B
Dividend Yield2.05%
Average Volume (3M)346.08K
Price to Earnings (P/E)10.9
Beta (1Y)0.45
Revenue Growth68.13%
EPS Growth12.44%
CountryUK
Employees2,509
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding196,860,640
10 Day Avg. Volume356,983
30 Day Avg. Volume346,082
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)9.63
Price to Sales (P/S)2.24
P/FCF Ratio23.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,660.00Price Target Upside24.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.78
Revenue Forecast (FY)£1.70B
Softcat Business Overview & Revenue Model
Company Description
Softcat 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, n...
How the Company Makes Money
Softcat makes money primarily by selling third-party technology products and subscriptions and by providing associated services. Its core revenue streams include: (1) Product and licensing resale: earning revenue from reselling vendor hardware (e....
Softcat Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.75B | 1.46B | 962.63M | 985.30M | 1.08B | 784.05M |
| Gross Profit | 539.56M | 490.73M | 417.75M | 372.31M | 326.65M | 276.06M |
| EBITDA | 208.80M | 190.74M | 166.47M | 147.02M | 143.61M | 124.24M |
| Net Income | 141.09M | 133.01M | 119.04M | 112.03M | 110.41M | 96.19M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 1.19B | 780.75M | 647.72M | 672.06M | 497.36M |
| Cash, Cash Equivalents and Short-Term Investments | 206.01M | 182.28M | 158.45M | 122.62M | 97.32M | 101.72M |
| Total Debt | 37.40M | 35.19M | 10.36M | 9.76M | 6.67M | 8.30M |
| Total Liabilities | 919.96M | 853.14M | 482.71M | 396.28M | 460.96M | 318.21M |
| Stockholders Equity | 286.09M | 338.78M | 298.04M | 251.44M | 211.10M | 179.14M |
Cash Flow | ||||||
| Free Cash Flow | 192.72M | 136.28M | 120.27M | 102.79M | 78.89M | 85.01M |
| Operating Cash Flow | 203.52M | 148.06M | 115.61M | 106.04M | 84.11M | 91.48M |
| Investing Cash Flow | -19.42M | -23.37M | -1.35M | -3.25M | -5.22M | -6.46M |
| Financing Cash Flow | -116.30M | -98.15M | -78.42M | -77.28M | -86.86M | -63.43M |
Softcat Technical Analysis
Positive
1337.00
Price Trends
1319.69
Positive
1291.71
Positive
1393.09
Positive
Market Momentum
75.33
Negative
82.73
Negative
93.08
Negative
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 1337 is below the 20-day moving average (MA) of 1429.55, above the 50-day MA of 1319.69, and below the 200-day MA of 1393.09, indicating a bullish trend. The MACD of 75.33 indicates Negative momentum. The RSI at 82.73 is Negative, neither overbought nor oversold. The STOCH value of 93.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SCT.
Softcat Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.29B | 10.91 | 45.16% | 2.05% | 68.13% | 12.44% | |
73 Outperform | £4.42B | 7.45 | 14.84% | 2.43% | 32.01% | -7.80% | |
72 Outperform | £49.67M | 14.63 | 38.65% | 2.69% | 30.01% | 138.65% | |
69 Neutral | £57.85M | 15.19 | 12.27% | ― | 27.43% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £122.21M | -65.69 | 10.20% | 13.93% | -31.03% | -72.36% | |
54 Neutral | £203.13M | 18.70 | 4.57% | 3.01% | -31.46% | 297.44% |
* Technology Sector Average
GB:SCT
Softcat
1,659.00
-84.69
-4.86%
GB:CCC
Computacenter
4,218.00
1,694.71
67.16%
GB:FDM
FDM Group (Holdings)
112.00
-88.28
-44.08%
GB:RCN
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128.00
1.75
1.39%
GB:TRD
Triad Group plc
285.00
11.94
4.37%
GB:MTEC
Made Tech Group PLC
38.50
8.50
28.33%
Softcat Corporate Events
Business Operations and StrategyFinancial Disclosures
Softcat Lifts Profit Outlook on Strong AI-Driven Infrastructure Demand
Positive
May 22, 2026
Softcat plc, a prominent UK IT infrastructure and services provider, leverages its broad expertise across hardware, software and services to support over 10,000 customers from mid-sized businesses to large enterprises. Its portfolio covers the ful...
Business Operations and StrategyRegulatory Filings and Compliance
Softcat CEO and CFO Increase Holdings Through Share Incentive Plan
Positive
May 8, 2026
Softcat has disclosed that its chief executive, Graham Charlton, and chief financial officer, Katy Mecklenburgh, have purchased small quantities of ordinary shares under the company’s Share Incentive Plan. The transactions, executed on 7 May...
Regulatory Filings and Compliance
Softcat Confirms Total Voting Rights and Share Capital
Neutral
May 1, 2026
Softcat plc has confirmed that, as of 30 April 2026, its issued share capital comprises 196,860,645 ordinary shares of £0.0005 each, all carrying voting rights, with no shares held in treasury. This disclosure sets the official total voting r...
Business Operations and StrategyPrivate Placements and Financing
Softcat Issues Additional Shares Under Long Term Incentive Plan
Neutral
May 1, 2026
Softcat plc has issued and allotted 10,461 new ordinary shares of 0.0005 pence each between 2 April 2026 and 29 April 2026 under its Long Term Incentive Plan, with the securities admitted to trading on the London Stock Exchange’s Main Market...
Regulatory Filings and Compliance
Softcat CFO Increases Stake With £100,000-Plus Share Purchase
Positive
Apr 29, 2026
Softcat has disclosed that its Chief Financial Officer, Kathryn Mecklenburgh, purchased 7,352 ordinary shares in the company on 27 April 2026 at an average price of £13.647285 per share. The off-venue transaction, reported under UK Market Abu...
Regulatory Filings and Compliance
Softcat CFO Increases Stake with £325k Share Purchase
Positive
Apr 23, 2026
Softcat has disclosed a series of share purchases by its chief financial officer, Kathryn Mecklenburgh, in line with UK Market Abuse Regulation reporting requirements. The transactions, conducted over 20–23 April 2026 outside a trading venue...
Regulatory Filings and Compliance
Softcat CEO and CFO Report Small Share Purchases Under Incentive Plan
Positive
Apr 9, 2026
Softcat has disclosed share purchases by its chief executive, Graham Charlton, and chief financial officer, Katy Mecklenburgh, under the company’s Share Incentive Plan. Each executive acquired 12 ordinary shares at 1,252p on 7 April 2026 on ...
Business Operations and Strategy
Softcat Expands Share Capital Through Long-Term Incentive Plan Awards
Neutral
Apr 1, 2026
Softcat has issued and allotted 44,646 new ordinary shares between 3 February 2026 and 26 March 2026 under its Long Term Incentive Plan, with a further 210,189 shares having been issued under the same scheme between December 2025 and January 2026....
Regulatory Filings and Compliance
Softcat Confirms Share Capital and Voting Rights Total
Neutral
Apr 1, 2026
Softcat plc has confirmed that, as of 31 March 2026, its issued share capital comprises 196,850,184 ordinary shares of £0.0005 each, all carrying voting rights and with no shares held in treasury. The disclosure, made under the FCA’s Di...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Softcat lifts profit guidance after AI-driven first-half surge
Positive
Mar 18, 2026
Softcat reported an exceptionally strong first half to 31 January 2026, with gross invoiced income up 33.3%, gross profit rising 22.6% and underlying operating profit increasing 27.3%, supported by robust cash generation and a net cash position of...
Regulatory Filings and Compliance
Softcat Executives Report Share Purchases Under Incentive Plan
Neutral
Mar 11, 2026
Softcat has disclosed that its chief executive officer Graham Charlton and chief financial officer Katy Mecklenburgh each purchased ordinary shares under the company’s Share Incentive Plan. The transactions, involving small acquisitions of p...
Regulatory Filings and Compliance
Softcat Updates Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
Softcat has confirmed that as of 27 February 2026 its issued share capital comprises 196,840,451 ordinary shares of £0.0005 each, all of which carry voting rights and none of which are held in treasury. This updated share count serves as the ...
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.