Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

The Softcat machine rolls on. H125 results provide no hint of UK economic and geopolitical uncertainty. Gross profit per customer grew by 10.7% to £43.1k and the customer base expanded by 1.4%, to 10.3k. Furthermore, this growth was seen across hardware, software and services (all growing high single- or double-digit percentages) and across all customer types (enterprise, mid-market and public sector). In addition, operating profit was converted to cash (110.9% conversion vs 101.1% in H124), strengthening the already debt-free balance sheet. Unsurprisingly, full year guidance has been raised, as has the interim dividend. The quality credentials of the group look set to keep growing.

The Softcat machine rolls on. H125 results provide no hint of UK economic and geopolitical uncertainty. Gross profit per customer grew by 10.7% to £43.1k and the customer base expanded by 1.4%, to 10.3k. Furthermore, this growth was seen across hardware, software and services (all growing high single- or double-digit percentages) and across all customer types (enterprise, mid-market and public sector). In addition, operating profit was converted to cash (110.9% conversion vs 101.1% in H124), strengthening the already debt-free balance sheet. Unsurprisingly, full year guidance has been raised, as has the interim dividend. The quality credentials of the group look set to keep growing.

Softcat — H125 results outperform again

Softcat’s FY24 results supports management’s assertion that the group has found a unique formula. Management re-emphasised the role of its corporate culture in creating a differentiated offering for the highly fragmented UK IT services market. Softcat’s resulting growth in market share also translated into strong cash generation and dividend flow. The results suggest that management can meet or slightly exceed guidance even under challenging economic conditions.

Softcat’s FY24 results supports management’s assertion that the group has found a unique formula. Management re-emphasised the role of its corporate culture in creating a differentiated offering for the highly fragmented UK IT services market. Softcat’s resulting growth in market share also translated into strong cash generation and dividend flow. The results suggest that management can meet or slightly exceed guidance even under challenging economic conditions.

Softcat - FY24 shows the strength of Softcat’s model

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Softcat is a UK-based IT value-added reseller with strong growth and profitability since its founding in 1993.</li><li>The company provides software, hardware, and services to businesses and has a solid balance sheet.</li><li>Investors are advised to conduct their own due diligence before making any investment decisions based on this report.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Softcat is a UK-based IT value-added reseller with strong growth and profitability since its founding in 1993.The company provides software, hardware, and services to businesses and has a solid balance sheet.Investors are advised to conduct their own due diligence before making any investment decisions based on this report.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Foxconn Industrial Internet / Technical Analysis

<ul>
<li>Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." </li>
<li>We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.</li>
<li>Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.</li>
</ul>


Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." 
We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.
Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.


Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Taiwan Semiconductor (TSMC) / Technical Analysis

<ul>
<li>New multi-year highs on the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes -- combined with overwhelmingly healthy market dynamics -- validates our bullish outlook on global equities.</li>
<li>We continue to view the latest 5-6% pullback on $ACWI as healthy and normal within the ongoing bull market, and we expect higher prices ahead.</li>
<li>Global Energy Sector appears to be topping, and Materials could be next. We highlight buys in Technology (quickly becoming leadership again) and Consumer Discretionary/Retail </li>
</ul>


New multi-year highs on the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes -- combined with overwhelmingly healthy market dynamics -- validates our bullish outlook on global equities.
We continue to view the latest 5-6% pullback on $ACWI as healthy and normal within the ongoing bull market, and we expect higher prices ahead.
Global Energy Sector appears to be topping, and Materials could be next. We highlight buys in Technology (quickly becoming leadership again) and Consumer Discretionary/Retail 


Global MSCI Indexes at Multi-Year Highs; Global Energy Sector Deteriorating, Is Materials Next?

United Kingdom

Softcat PLC provides information technology services. The Company offers commodity sourcing, software licensing, e-procurement, unified communications, and managed services. Softcat serves customers in the United Kingdom.

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Softcat PLC (SCT LN)

Softcat — H125 results outperform again

The Softcat machine rolls on. H125 results provide no hint of UK economic and geopolitical uncertainty. Gross profit per customer grew by 10.7% to...

Edison Investment Research

Softcat - FY24 shows the strength of Softcat’s model

Softcat’s FY24 results supports management’s assertion that the group has found a unique formula. Management re-emphasised the role of its...

Edison Investment Research

Softcat (SCT) - Thursday, May 16, 2024

Softcat is a UK-based IT value-added reseller with strong growth and profitability since its founding in 1993. The company provides software,...

Value Investors Club

Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Downgrading Europe to Market Weight $FEZ $STOXX; Europe Still Bullish From a Price Perspective; Bullish Outlook Intact on $ACWI $EEM; Supports...

Vermilion Research

Global MSCI Indexes at Multi-Year Highs; Global Energy Sector Deteriorating, Is Materials Next?

There are few things more bullish than Global MSCI Indexes at Multi-Year Highs $ACWI $ACWX $EFA $EEM; Buys in Tech $TSM; Global Energy Sector...

Vermilion Research

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