Softcat Share Discussion Threads

[disc0dave45] 25/10/2022 14:10

They said today that operating profit for this FY will be on a par with FY22, so not much growth.My slight concern at the moment is their staffing cost increases in H1 eroding margin and extending through to H2....so risking their expectations of matching year end operating profit.

[essentialinvestor] 25/10/2022 13:52

Dave, looking at FY '23 and '24 consensus there does not appear to be much growth forecast - may be adjusted following today.

UK about to take a significant macro hit but SCT market arguably more resilient.

Previous multiples were in a ZIRP environment and easier to justify,
post ZIRP leading to multiple compression across the market.

On a very quick first look this seems fairly valued with so much else
getting cheaper, however the record is strong, no debt ..etc.

[essentialinvestor] 25/10/2022 13:37

I've just started looking at this so will need to watch or read the conference
call presentation. I know the name as it's held by some IT's I hold.

Bought a very small amount to keep it on m screen.

[shareholder7] 25/10/2022 12:38

Lack of understanding it's not a tech share This will pick up once the management has done it's rounds later but great pension share if you can wait

[essentialinvestor] 25/10/2022 12:17

What's driven the huge de-rating?, wider tech multiple compression?, bear market..

[shareholder7] 25/10/2022 12:02

What people don't realise is this company is a trader and has a unique sales model by recruiting graduates and paying them on Gross profit.That ensures a very competent work force and Softcats competition don't do this. So it's a sales model that makes them different Everyone will need office and essential software so sales will continue on the up The more people they hire the more margin they make that's why employee numbers are key Great share to put away, take the dividend and wait for it to hit new highs as it will

[disc0dave45] 25/10/2022 11:37

EI"Strong balance sheet position maintained with net cash at year end of GBP97.3m (2021: GBP101.7m"

[essentialinvestor] 25/10/2022 11:34

thanks, late one last night.

[ddubzy] 25/10/2022 11:23

Our balance sheet remains strong, and the Company carries no external bank debt. Consequently, we are confident that the business is in a very strong position to continue to outperform the market.Probably explains why this continues to fall!!!!

[essentialinvestor] 25/10/2022 10:44

Dave, is there net debt here, can't see on a first look through, thanks.
Need a coffee.

[disc0dave45] 25/10/2022 10:23

Agree. On a PE of 20x is back to 2018 lows when eps was half what it is now. As a comparison, the share price peaked in 2018 at about 845, so double that for now is 1690p. This will recover when growth / Tech returns to favour, but until then?.

[brut winky] 25/10/2022 08:19

Looking to buy back in after selling weeks ago, will wait for some weakness.

[shareholder7] 25/10/2022 07:36

? good results market does not get Softcat

[disc0dave45] 24/10/2022 21:36

Update tomorrow along with MSFT

[disc0dave45] 14/10/2022 17:42

Agree, do think their update will be positive and the share price will reflect that but macro and out of favour tech will drag it back down.I've been watching a cloud computing etf (WCLD) and SCT has followed the same decline (although the etf has dropped a lot more from its 52w high). May go for the etf rather than SCT at some point, will see.Should have sold up a lot sooner but hindsight and all that.

[shareholder7] 14/10/2022 16:47

Strange world Dico as GDP is my best performing share and bailing me out. Sometimes patience pays off However I have been investing back into softcat at these levels as this share is just marked down my MM and not for trading reasons They have consistently performed qtr on qtr but as you will see there few comments on these boards and lots of shares held by big trusts etc so not a lot of interest I would expect the share to rise on 25th and then slowly drift down with the market again but this is a very very good company and a long term hold

[disc0dave45] 14/10/2022 15:07

Can't believe how much this has dropped, now lower than pre pandemic. Seen a chunk of my profits evaporate but will keep my eye on it to possibly get back in.

[roguetraderuk] 16/9/2022 09:45

enterprise valuations under pressure as people think next domino to fall

[ddubzy] 16/9/2022 09:38

Quite staggering this. Operating profit ahead and yet continued daily drops

[disc0dave45] 08/9/2022 10:05

Wouldn't be surprised if this is the next software / IT company to be gobbled up by the US.

[disc0dave45] 16/8/2022 12:54

Agree.IMO 1380 and then the yanks will pick some more up dirt cheap later.

[mrbeaky] 16/8/2022 11:39

Don’t see any reason why we would be trading down 2.6% when market is solid

[disc0dave45] 16/8/2022 11:07

Are algos playing this and taking it down to 1380?