# Softcat plc (SCT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / IT Services. Price 1972p, market value 3.9 billionp.

## Valuation
- **P/E (trailing): 28.2×** (5-yr avg 2891.8×, 3-yr avg 2634.7×). Softcat plc trades at 28.2× trailing earnings, well below its own five-year average of 2891.8×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 23.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.00**. A PEG of 2.00 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 13.8×**. The shares trade at 13.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 9.8×**. Enterprise value is 9.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.3%** (5-yr avg 0.0%). Free cash flow equals 8.3% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.5%**. The inverse of the P/E: 3.5% of the price is earned each year.

## Profitability
- **Gross margin: 35.1%**. Softcat plc keeps 35.1% of revenue after the direct cost of what it sells.
- **Operating margin: 12.9%**. 12.9% of revenue is left after running the business.
- **Net margin: 9.1%**. 9.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 39.3%**. 39.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 140.2%**. Return on all capital, debt included, is 140.2%: comfortably above what that capital costs.
- **Return on assets: 22.4%**. Each dollar of assets produces 22.4% of profit.

## Growth
- **Revenue growth (1 yr): 51.5%** (3-yr 10.6%/yr, 5-yr 6.2%/yr). Revenue grew 51.5% over the last year, against 6.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 11.9%** (3-yr 6.3%/yr, 5-yr 11.7%/yr). Earnings per share rose 11.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 20.0%/yr**. Free cash flow has compounded at 20.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.10**. Debt is 0.10 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Softcat plc holds more cash than debt.
- **Interest coverage: 108.6×**. Operating profit covers interest 108.6× over, a safe margin.
- **Current ratio: 1.28** (quick 1.10). Current assets cover the next year's liabilities 1.28 times.
- **Altman Z-score: 5.18**. A Z-score of 5.18 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.48%** (0p per share, trailing). Softcat plc yields 1.48%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 72%** (58% of free cash flow). 72% of earnings goes out as dividends, leaving a thin cushion.
- **Dividend growth (5 yr): 13.4%/yr** (1-yr -4.4%). The dividend has compounded at 13.4% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 2.1%**. Dividends plus net buybacks return 2.1% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (12 analysts). 12 analysts cover Softcat plc; the consensus is buy, with an average price target of 1952p (-1% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 29.5%** (YTD 46.1%, 3-mo 9.5%). The shares are up 29.5% over twelve months including dividends.
- **From 52-week high: -7.6%** (82.1% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 0.22** (volatility 32%). Beta of 0.22 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SCT.L · Page: https://foliofundamentals.com/stocks/sct.l

Not investment advice.