Softcat plc (SCT.L) stock analysis

In our weekly check, Softcat plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1.

About Softcat plc

Softcat plc is a Technology company (Information Technology Services) based in the United Kingdom, listed on LSE as SCT.L.

What our checks show for SCT.L

Red flags

• The net margin fell by 2.6 points over 5 years, to 7.6%: the company keeps less of each sale as profit.

Warning signs

• Analysts expect the net margin to shrink by 1 points from today's 7.6%.
• The net margin is only 7.6%: little room if costs rise.
• The price swings a lot: 35.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 52% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.1x equity.
• Operating profit covers interest 137 times over.
• Analysts expect earnings per share to grow about 14.4% a year over the next years.
• Analysts expect revenue to grow about 18.4% a year over the next years.
• Revenue grew 26.1% a year over the last 3 years.
• Earnings per share grew 10.7% a year over the last 3 years.

Similar companies

SOP.PA · CIFR · KD · BC8.DE · GDS · REY.MI

Questions

What grade does Softcat plc (SCT.L) have?

In our weekly check, Softcat plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SCT.L stock?

This week's biggest flags for Softcat plc: Margins falling, Margins expected to shrink, Thin margins. In total 6 of 25 checks show a warning or a red flag.

What does Softcat plc do?

Softcat plc is a Technology company (Information Technology Services) based in the United Kingdom, listed on LSE as SCT.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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