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SoftcatFRA:SF5 -0.87%81 Debt-to-Equity is 0.13 as of Jan. 2026, which is 160% above its 10-year median of 0.05. GuruFocus rates FRA:SF5 with a GF Score™ of 81/100 and a GF Value™ of €30.07. The stock has 5 warning signs investors should review. Among 2,221 Hardware companies, Softcat ranks better than 68.3% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Softcat's Debt-to-Equity or its related term are showing as below:
FRA:SF5'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.03 Med: 0.05 Max: 0.13
Current: 0.13
During the past 13 years, the highest Debt-to-Equity Ratio of Softcat was 0.13. The lowest was 0.03. And the median was 0.05.
FRA:SF5's Debt-to-Equity is ranked better than 68.3% of 2221
companies
in the Hardware industry
Industry Median: 0.27
vs FRA:SF5: 0.13
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Softcat Debt-to-Equity Related Terms
Softcat Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Softcat's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:SF5 vs SNX, ARW, AVT: Debt-to-Equity Comparison
For the Electronics & Computer Distribution subindustry, Softcat's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Softcat Debt-to-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Softcat's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Softcat (FRA:SF5) has a Debt-to-Equity of 0.13 as of Jan. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Softcat and its competitors. This is 160% above median its historical median of 0.05. Over the past decade, Softcat's Debt-to-Equity has ranged from 0.03 to 0.13. According to the industry distribution chart, Softcat ranks #704 out of 2221 companies in the Hardware industry, placing it in the top 31.7%.
Is Softcat's Debt-to-Equity too high?
Softcat's current Debt-to-Equity of 0.13 is 160% above median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.13. The Hardware industry median Debt-to-Equity is 0.27. Softcat's value of 0.13 is 51.9% below this industry median. Based on the distribution chart, Softcat ranks #704 out of 2221 companies in the Hardware industry, which is above the industry midpoint. Overall, Softcat has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Softcat's Debt-to-Equity compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #704 out of 2221 companies for Debt-to-Equity. This puts Softcat in the upper half of its industry. The industry median Debt-to-Equity is 0.27. Softcat's value of 0.13 is 51.9% below this benchmark. Historically, Softcat's own Debt-to-Equity has ranged from 0.03 to 0.13 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 0.27, Softcat has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Hardware company?
The median Debt-to-Equity among Hardware companies is 0.27, based on 2,221 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Softcat's current Debt-to-Equity of 0.13 is 51.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Softcat and its competitors. For the Hardware industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current Debt-to-Equity is 0.13, which is 160% above median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Softcat (FRA:SF5) has a current Debt-to-Equity of 0.13. The stock's GF Value™ is €30.07, compared to a current price of €22.80 — trading 24.2% below its estimated fair value. The current Debt-to-Equity is 0.13, which is 160% above median its 10-year median of 0.05 and 51.9% below the Hardware industry median of 0.27. Softcat's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Softcat (FRA:SF5), the current Debt-to-Equity is 0.13 as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Softcat (FRA:SF5) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of €22.80 is trading 24.2% below its estimated GF Value™ of €30.07.
Key valuation signals for FRA:SF5:
Debt-to-Equity: 0.13 (160% above median its 10-year median of 0.05)
GF Value™: €30.07 vs. price of €22.80 (24.2% below fair value)
Industry Position: 51.9% below the Hardware median (#704 of 2221)
No single metric tells the full story. See the FRA:SF5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
81GF Score
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