Softcat SCT.L
United KingdomTechnology · Electronics & Computer DistributionLondon Stock Exchange · GBP
21.51 GBP (+17.8%)
13 analysts
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Softcat is a technology distributor and IT solutions provider based in the UK, selling hardware, software, and consulting services to businesses and public sector organizations.
Listed on London Stock Exchange · Symbol SCT.L · LON: SCT · Currency GBP
Key points
from its scores- ✓High-quality business8.4
- ✓Strong growth8.4
- ✓Favourable backdrop8.2
AI analysis
bottom line, main risk, context and newsFundamentals are excellent, but valuation does not offer a wide margin of safety.
Softcat shows solid financial health with net cash (Net Debt/EBITDA of -0.82), exceptional profitability (ROIC of 56.74% and ROE of 49.77%), and very strong revenue growth of 53.5%, although its valuation (P/E 26.07) already discounts some of these strengths.
The main risk is dependence on major technology vendors (such as hyperscalers) and a potential slowdown in IT spending if the AI investment cycle stalls, which would directly impact its revenue growth.
Context and risks
Softcat is a technology distributor based in the UK, with no material exposure to interest rates, nor to commodities, nor to conflict-affected shipping routes. Its IT distribution business is not directly affected by the current tightening of rates or geopolitics, and there is no recent news altering its risk profile.
Is Softcat stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 17% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 26.1 | 31.3 | −17% |
| EV / EBITDA | 17.0 | 20.4 | −17% |
| Price / book | 12.7 | 6.3 | +102% |
| Price / sales | 2.2 | 5.3 | −58% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.3 out of 10 (median for Technology: 5.3).
Average analyst target: 21.51 GBP, +17.8% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.0 (sector 6.9), Growth 8.4 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 26.1
- Forward P/E
- 21.1
- EV / EBITDA
- 17.0
- Price / book
- 12.7
- Price / sales
- 2.2
- PEG
- 1.55
- Market cap
- 3.9B GBP
- Enterprise value
- 3.5B GBP
Profitability
- ROE
- 49.8%
- ROA
- 12.3%
- ROIC (approx.)
- 56.7%
- Gross margin
- 31.1%
- Operating margin
- 11.2%
- Net margin
- 8.1%
- Free cash flow
- 193.0M GBP
- FCF yield
- 4.9%
- Cash conversion
- 94%
Solvency
- Total debt
- 37.4M GBP
- Net debt
- −168.6M GBP
- Cash
- 206.0M GBP
- EBITDA
- 205.0M GBP
- Net debt / EBITDA
- −0.82
- Debt / equity
- 13.07
- Current ratio
- 1.30
- Quick ratio
- 1.22
Growth
- Revenue growth
- +53.5%
- Earnings growth
- +13.6%
- EPS (TTM)
- 0.70 GBP
- EPS (forward)
- 0.86 GBP
Dividend
- Dividend yield
- 1.6%
- Payout
- 41.8%
Risk and market
- Beta
- 0.60
- Analyst consensus
- Buy (13)
- Target price
- 21.51 GBP
Recent news
All SCT.L news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Softcat
Is Softcat stock cheap or expensive?
On P/E and EV / EBITDA, it trades 17% below the Technology median on average. Valuation score: 6.3 out of 10 (median for Technology: 5.3). Average analyst target: 21.51 GBP, +17.8% versus the price. This is not investment advice.
What score does Softcat get on MeridIAn Screener?
It scores 7.5 out of 10, rank 57 of 2,130 (better than 97% of the companies analysed). Its strongest category is Quality / Moat (8.4) and its weakest, Valuation (6.3). Analysis of 08/10/2026.
What is Softcat's P/E ratio?
Its P/E is 26.1: the share price equals 26.1 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 21.1.
How much is Softcat worth on the stock market?
Its market capitalisation is 3.9B GBP and its enterprise value, debt included, is 3.5B GBP.
How much debt does Softcat have?
It has more cash than debt: net cash of 168.6M GBP.
Does Softcat pay a dividend?
Yes: its dividend yield is 1.64% and it pays out 42% of its earnings.
How has Softcat stock performed over the last year?
It has risen 16.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 21.34 GBP. Past performance does not guarantee future results.
What do analysts think of Softcat?
13 analysts cover it; their average recommendation is “Buy” and their average target is 21.51 GBP (+17.8% versus the price). It is an estimate, not market data.