Softchoice (SFTC-T)
TSE:SFTC
24.49
0.01
(0.04%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
This summary was created by AI, based on 8 opinions in the last 12 months.
Softchoice (SFTC) has been identified as a solid small-cap stock with diligent and ethical management focused on returning capital to shareholders, including a notable special dividend this year. Analysts have expressed confidence in the company's core business and its ongoing potential for growth, particularly through AI integration across platforms such as Microsoft, AWS, and Google Cloud. Recent cash flow reports indicate strong operational performance, with substantial cash reserves allowing for debt reduction and share buy-backs. Valuations suggest that while there have been some disappointments in the stock's performance historically, the current position reflects improving fundamentals. Recommendations from experts involve maintaining stop-loss strategies while aiming for price targets around $22, indicating substantial upside potential from current levels.
Our PAST TOP PICK with SFTC has triggered its stop at $18. To remain disciplined, we recommend covering the position at this time. When combined with previous guidance, this will result in a net investment gain of 12%
We reiterate this company that is bringing AI integration to customers of Microsoft across multiple platforms including AWS and Google Cloud. We like that cash reserves are growing, whiles shares are aggressively bought back and debt is retired. It trades at 17x earnings and supports a ROE over 90%. Its modest dividend is backed by a payout ratio under 50% of cash flow. We recommend trailing up the stop (from $14.00) to $15.50, looking to achieve $22 — upside potential of 22%. Yield 2.8%
(Analysts’ price target is $21.75)The company is striving to bring AI integration to customers thru the Copilot platform of Microsoft across multiple platforms including AWS and Google Cloud. Recently reported cash from operations was $100 million, allowing cash reserves to grow while debt is retired and shares bought back. It trades at 17x earnings and supports a ROE over 90%. Its modest dividend is backed by a payout ratio under 50% of cash flow. We recommend setting a stop-loss at $14, looking to achieve $22 — upside potential of 22%. Yield 1.9%
(Analysts’ price target is $22.08)SFTC has been relatively flat over the last year and part fo the reason could be attributed to lower hardware demand that is forecasted to rebound in 2024. Despite declining revenues in 2023, SMTC's gross profit margins have improved which is a good sign. Growth forecast for the next two years for revenue is quite marginal for revenue over the next two years while EPS growth is similar. We don't see SFTC having a huge growth profile going forward but the stock could still perform well in 2024. We think there are other more intriguing options.
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An IT solutions provider. It used to be on Canadian markets, went private, then public again. They almost never lose customers. Bay Street doesn't really know this company (no price target). He expects profitability to jump and have high free cash flow convergence. Will grow organically, a steady eddy. Shares are cheap.
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Softchoice(SFTC-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 5
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 6
Softchoice(SFTC-T) Frequently Asked Questions
What is Softchoice stock symbol?
Softchoice is a Canadian stock, trading under the symbol SFTC-T on the Toronto Stock Exchange (SFTC-CT). It is usually referred to as TSX:SFTC or SFTC-T
Is Softchoice a buy or a sell?
In the last year, 6 stock analysts published opinions about SFTC-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Softchoice.
Is Softchoice a good investment or a top pick?
Softchoice was recommended as a Top Pick by on . Read the latest stock experts ratings for Softchoice.
Why is Softchoice stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Softchoice worth watching?
6 stock analysts on Stockchase covered Softchoice In the last year. It is a trending stock that is worth watching.
What is Softchoice stock price?
On 2025-03-14, Softchoice (SFTC-T) stock closed at a price of $24.49.
Great small-cap. Management is diligent, disciplined, ethical. Returns capital to shareholders. Earlier this year, paid shareholders a big special dividend. Underlying results have been very good. Core business. Not going anywhere.