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Softcat
(LSE:SCT)
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Rating:74Outperform
Price Target:
2,181.00 p
▲(4.76% Upside)
Action:Reiterated
Date:07/03/26
Score is driven primarily by strong financial performance (rapid revenue growth, healthy margins, strong cash conversion, and low leverage). Technicals are supportive but show overbought conditions that temper the outlook. Valuation (P/E 27.42) is a headwind despite a moderate 2.38% dividend yield.
Positive Factors
Strong revenue growth and margins
Robust revenue expansion, improving gross margin and healthy profitability indicate strong customer demand and operating discipline. These factors can support continued investment in services and technology capabilities while reinforcing Softcat’s competitive position.
Negative Factors
Historically volatile revenue growth
Variable growth makes forward planning less predictable and may reflect sensitivity to enterprise IT budgets, project timing and vendor cycles. This could create uneven operating leverage and make sustained expansion harder to assess over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and margins
Robust revenue expansion, improving gross margin and healthy profitability indicate strong customer demand and operating discipline. These factors can support continued investment in services and technology capabilities while reinforcing Softcat’s competitive position.
Read all positive factors
Softcat (SCT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.02B
Dividend Yield2.26%
Average Volume (3M)357.95K
Price to Earnings (P/E)28.9
Beta (1Y)0.43
Revenue Growth68.13%
EPS Growth12.44%
CountryUK
Employees2,863
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding196,891,500
10 Day Avg. Volume362,144
30 Day Avg. Volume357,950
Financial Highlights & Ratios
PEG Ratio2.09
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
£1,948.00Price Target Upside-6.44% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.84
Revenue Forecast (FY)£1.81B
Softcat Business Overview & Revenue Model
Company Description
Softcat plc, a UK-based company established in 1987 with headquarters in Marlow, operates as a leading value-added IT reseller and provider of IT infrastructure solutions. Serving both commercial enterprises and public sector entities across the U...
How the Company Makes Money
Softcat makes money primarily by selling third-party technology products and services and earning margin on those sales, supplemented by fees for its own services. A key revenue stream is software and cloud: Softcat resells vendor software licence...
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
2082.00
Price Trends
1956.92
Positive
1764.67
Positive
1531.39
Positive
Market Momentum
33.13
Positive
56.28
Neutral
33.82
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 2082 is above the 20-day moving average (MA) of 2035.45, above the 50-day MA of 1956.92, and above the 200-day MA of 1531.39, indicating a bullish trend. The MACD of 33.13 indicates Positive momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 33.82 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £4.02B | 28.87 | 45.16% | 2.26% | 68.13% | 12.44% | |
73 Outperform | £69.79M | 40.28 | 35.58% | 2.25% | 15.70% | -4.34% | |
69 Neutral | £64.19M | 34.68 | 12.27% | ― | 27.43% | ― | |
66 Neutral | £5.86B | 46.20 | 14.84% | 1.33% | 32.01% | -7.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £114.79M | 45.88 | 4.84% | 9.56% | -25.95% | -83.91% | |
45 Neutral | £105.61M | 3.34 | 4.57% | 0.15% | -31.46% | 297.44% |
* Technology Sector Average
GB:SCT
Softcat
2,050.00
487.56
31.21%
GB:CCC
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GB:FDM
FDM Group (Holdings)
104.60
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GB:RCN
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103.00
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-23.70%
GB:TRD
Triad Group plc
400.00
91.54
29.68%
GB:MTEC
Made Tech Group PLC
43.00
5.00
13.16%
Softcat Corporate Events
Regulatory Filings and Compliance
Softcat Executives Report Share Purchases Under Incentive Plan
Neutral
Aug 11, 2026
Softcat plc has disclosed share purchases by senior management under its share incentive arrangements, in line with UK market abuse regulations. The company provided details of the transactions involving ordinary shares listed on the London Stock ...
Business Operations and Strategy
Softcat Adds Peel Hunt as Joint Corporate Broker to Bolster Market Reach
Positive
Aug 10, 2026
Softcat has appointed Peel Hunt LLP as a joint corporate broker with immediate effect, adding to its existing relationship with J.P. Morgan Cazenove. The move strengthens the company’s capital markets advisory support, signalling an effort t...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Softcat Adds 4,284 Shares Under Long-Term Incentive Plan
Neutral
Aug 3, 2026
Softcat plc has issued and allotted 4,284 new ordinary shares of 0.0005 pence each between 1 July and 31 July 2026 under its Long Term Incentive Plan, aligning equity-based rewards with its employee compensation strategy. These shares, which form ...
Regulatory Filings and Compliance
Softcat Confirms Total Voting Rights and Share Capital Structure
Neutral
Aug 3, 2026
Softcat plc reported that, as of 31 July 2026, its issued share capital comprises 196,891,493 ordinary shares of £0.0005 each, all carrying voting rights and with no shares held in treasury. This disclosure clarifies the company’s total...
Regulatory Filings and Compliance
Softcat Executives Report Share Purchases Under Incentive Plan
Positive
Jul 8, 2026
Softcat plc has disclosed small share purchases by chief executive Graham Charlton and chief financial officer Katy Mecklenburgh under the company’s Share Incentive Plan, in line with UK Market Abuse Regulation reporting rules. The transacti...
Business Operations and StrategyRegulatory Filings and Compliance
Softcat Adds Shares Under Long-Term Incentive Plan
Neutral
Jul 1, 2026
Softcat plc has issued and allotted 19,432 new ordinary shares between 1 June and 30 June 2026 under its Long Term Incentive Plan, increasing its total shares in issue to 196,887,209. The new shares, which are fully fungible with existing stock an...
Regulatory Filings and Compliance
Softcat Publishes Updated Share Capital and Voting Rights
Neutral
Jul 1, 2026
Softcat has confirmed that, as of 30 June 2026, its issued share capital comprises 196,887,209 ordinary shares of £0.0005 each, all carrying voting rights and with no shares held in treasury. The disclosure, made under the FCA’s Disclos...
Business Operations and StrategyExecutive/Board Changes
Softcat Extends Chairman Graeme Watt’s Tenure to 2030
Positive
Jun 29, 2026
Softcat has extended the tenure of Non-Executive Chairman Graeme Watt, following consultation with shareholders, with his appointment now running up to April 2030. The board cited his extensive sector experience and the robust independent challeng...
Regulatory Filings and Compliance
Softcat Executives Add Shares Under Company Incentive Plan
Positive
Jun 9, 2026
Softcat has disclosed that chief executive Graham Charlton and chief financial officer Katy Mecklenburgh each bought a small number of ordinary shares under the company’s Share Incentive Plan. The purchases, executed on 8 June on the London ...
Private Placements and Financing
Softcat Issues Additional Shares Under Long-Term Incentive Plan
Neutral
Jun 1, 2026
Softcat has issued and allotted 7,132 ordinary shares of 0.0005 pence each between 7 May and 22 May 2026 under its Long Term Incentive Plan, with these shares forming part of a previously established block admission. Following this issuance, which...
Regulatory Filings and Compliance
Softcat Confirms Total Voting Rights Following Share Capital Update
Neutral
Jun 1, 2026
Softcat has confirmed that as of 29 May 2026 its issued share capital comprises 196,867,777 ordinary shares, each carrying one voting right, with no shares held in treasury. The disclosure clarifies the total voting rights for investors, providing...
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.