SoftcatLSE:SCT +0.11%89 FCF Margin % is 13.92% as of Jan. 2026, which is 95% above its 10-year median of 7.15. GuruFocus rates LSE:SCT with a GF Score™ of 89/100 and a GF Value™ of £26.05 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,471 Hardware companies, Softcat ranks better than 82.4% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Softcat's Free Cash Flow for the
six
months ended in Jan. 2026 was £117 Mil. Softcat's Revenue for the
six
months ended in Jan. 2026 was £838 Mil. Therefore, Softcat's FCF Margin % for the quarter that ended in Jan. 2026 was 13.92%.
The historical rank and industry rank for Softcat's FCF Margin % or its related term are showing as below:
LSE:SCT'
s FCF Margin % Range Over the Past 10 Years
Min: 4.19 Med: 7.15 Max: 11.27
Current: 10.55
During the past 13 years, the highest FCF Margin % of Softcat was 11.27%. The lowest was 4.19%. And the median was 7.15%.
LSE:SCT's FCF Margin % is ranked better than 82.4% of 2471
companies
in the Hardware industry
Industry Median: 0.63
vs LSE:SCT: 10.55
Softcat FCF Margin % Related Terms
Softcat FCF Margin % Historical Data
* Premium members only.
The historical data trend for Softcat's FCF Margin % 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.
For the Electronics & Computer Distribution subindustry, Softcat's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Softcat's FCF Margin % 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 (LSE:SCT) has a FCF Margin % of 13.92% as of Jan. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Softcat and its competitors. This is 95% above median its historical median of 7.15. Over the past decade, Softcat's FCF Margin % has ranged from 4.19 to 11.27. According to the industry distribution chart, Softcat ranks #435 out of 2471 companies in the Hardware industry, placing it in the top 17.6%.
Is Softcat's FCF Margin % too high?
Softcat's current FCF Margin % of 13.92% is 95% above median its 10-year median of 7.15. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 11.27. The Hardware industry median FCF Margin % is 0.63. Softcat's value of 13.92% is 2109.5% above this industry median. Based on the distribution chart, Softcat ranks #435 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Softcat has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's FCF Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #435 out of 2471 companies for FCF Margin %. This places Softcat in the top 18% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 0.63. Softcat's value of 13.92% is 2109.5% above this benchmark. Historically, Softcat's own FCF Margin % has ranged from 4.19 to 11.27 over the past decade. While the company's 10-year median is 7.15 vs. the industry median of 0.63, Softcat has consistently been above 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 FCF Margin % for a Hardware company?
The median FCF Margin % among Hardware companies is 0.63, based on 2,471 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Softcat's current FCF Margin % of 13.92% is 2109.5% above 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Softcat and its competitors. For the Hardware industry, the median FCF Margin % is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current FCF Margin % is 13.92%, which is 95% above median its own 10-year median of 7.15. 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?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Significantly Undervalued. The stock's GF Value™ is £26.05, compared to a current price of £17.78 — trading 31.7% below its estimated fair value. The current FCF Margin % is 13.92%, which is 95% above median its 10-year median of 7.15 and 2109.5% above the Hardware industry median of 0.63. Softcat's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Softcat (LSE:SCT), the current FCF Margin % is 13.92% 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 (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £17.78 is trading 31.7% below its estimated GF Value™ of £26.05.
GuruFocus considers Softcat to be Significantly Undervalued.
Key valuation signals for LSE:SCT:
FCF Margin %: 13.92% (95% above median its 10-year median of 7.15)
GF Value™: £26.05 vs. price of £17.78 (31.7% below fair value)
Industry Position: 2109.5% above the Hardware median (#435 of 2471)
No single metric tells the full story. See the LSE:SCT 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.
89GF Score
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