SoftcatLSE:SCT +0.11%89 ROE % is 41.91% as of Jan. 2026, which is 20% below its 10-year median of 52.51. 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 2,423 Hardware companies, Softcat ranks better than 97.9% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Softcat's annualized net income for the quarter that ended in Jan. 2026 was £131 Mil. Softcat's average Total Stockholders Equity over the quarter that ended in Jan. 2026 was £312 Mil. Therefore, Softcat's annualized ROE % for the quarter that ended in Jan. 2026 was 41.91%.
The historical rank and industry rank for Softcat's ROE % or its related term are showing as below:
LSE:SCT'
s ROE % Range Over the Past 10 Years
Min: 36.2 Med: 52.51 Max: 63.33
Current: 46.73
During the past 13 years, Softcat's highest ROE % was 63.33%. The lowest was 36.20%. And the median was 52.51%.
LSE:SCT's ROE % is ranked better than 97.9% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs LSE:SCT: 46.73
Softcat (LSE:SCT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Softcat ROE % Related Terms
Softcat ROE % Historical Data
* Premium members only.
The historical data trend for Softcat's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's ROE % distribution charts can be found below:
* The bar in red indicates where Softcat's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Softcat (LSE:SCT) has a ROE % of 41.91% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Softcat and its competitors. This is 20% below median its historical median of 52.51. Over the past decade, Softcat's ROE % has ranged from 36.20 to 63.33. According to the industry distribution chart, Softcat ranks #51 out of 2423 companies in the Hardware industry, placing it in the top 2.1%.
Is Softcat's ROE % too high?
Softcat's current ROE % of 41.91% is 20% below median its 10-year median of 52.51. Over the past 10 years, this metric has ranged from a low of 36.20 to a high of 63.33. The Hardware industry median ROE % is 4.61. Softcat's value of 41.91% is 809.1% above this industry median. Based on the distribution chart, Softcat ranks #51 out of 2423 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 ROE % compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #51 out of 2423 companies for ROE %. This places Softcat in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 4.61. Softcat's value of 41.91% is 809.1% above this benchmark. Historically, Softcat's own ROE % has ranged from 36.20 to 63.33 over the past decade. While the company's 10-year median is 52.51 vs. the industry median of 4.61, 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 ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Softcat's current ROE % of 41.91% is 809.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Softcat and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current ROE % is 41.91%, which is 20% below median its own 10-year median of 52.51. 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 ROE % is 41.91%, which is 20% below median its 10-year median of 52.51 and 809.1% above the Hardware industry median of 4.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Softcat (LSE:SCT), the current ROE % is 41.91% 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:
ROE %: 41.91% (20% below median its 10-year median of 52.51)
GF Value™: £26.05 vs. price of £17.78 (31.7% below fair value)
Industry Position: 809.1% above the Hardware median (#51 of 2423)
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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