Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Softchoice (SFTC-T) is a tech services company that resells Microsoft products and is striving to bring AI integration to customers through the Copilot platform of Microsoft across multiple platforms including AWS and Google Cloud. The company recently reported strong cash from operations, leading to growing cash reserves, debt retirement, and share buybacks. With a modest dividend backed by a healthy payout ratio, Softchoice has solid fundamentals. Although it may face some challenges in the near future due to uncertain corporate spending on tech, the stock is expected to perform well in 2024, with a potential upside of 22% and a current 1.9% yield.

Consensus
Positive
Valuation
Fair Value
PARTIAL BUY
Softchoice

They re-sell a lot of Microsoft product. Though the stock has disappointed in recent years, operations are solid and shares should improve.

Technology
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Softchoice
Stockchase Research Editor: Michael O'Reilly

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)
Technology
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Softchoice
Stockchase Research Editor: Michael O’Reilly

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)
Technology
WEAK BUY
Softchoice

The re-sell Microsoft products into companies. Really likes this. Is a tech services and not a software company. Well-run, pays a 2.5% dividend and 28x PE. This year may be choppy because he's unsure what corporate spending on tech will be like.

Technology
DON'T BUY
Softchoice
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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Technology
PAST TOP PICK
Softchoice
(A Top Pick Mar 01/22, Down 3%) Keep in mind that these past top picks were made only four months ago and have not had a longer time frame to show returns. It is a solid tech name in cloud based solutions and has held up well in the tech sell-off. Q1 was mixed but most of its profitability should be in the second half of the year. It is a 10% organic grower.
Technology
TOP PICK
Softchoice

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.

Technology
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Softchoice(SFTC-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for Softchoice is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

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, 3 stock analysts published opinions about SFTC-T. 2 analysts recommended to BUY the stock. 1 analyst 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?

3 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 2024-06-21, Softchoice (SFTC-T) stock closed at a price of $16.75.