Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Bytes Technology Group Plc is a leading UK-based provider of software, IT security, cloud services, hardware, and AI solutions. Established in 1982 from a small shop in Epsom, Surrey, the company has grown into a FTSE 250 constituent, specializing in reselling computer software, particularly Microsoft products like Azure cloud computing, alongside security, asset management, and storage solutions. It serves over 6,000 customers across corporate, public sector, and other organizations in the UK and Ireland through its subsidiaries, Bytes Software Services and Phoenix Software, fostering long-term partnerships with world-leading vendors. With more than 1,000 employees based at its headquarters in Leatherhead, Surrey, Bytes Technology Group Plc emphasizes transformative technologies to help clients navigate digital change efficiently. The firm prioritizes organic growth by expanding services for existing customers and acquiring new ones, while maintaining a strong commitment to employee development, corporate social responsibility, community involvement, and sustainability initiatives to minimize environmental impact.
£3.97
£0.11 (-2.74%)
EOD Jul 3, 2026
Margins and capital returns are both well above average: 28.44% operating margin, ROIC at 50.33%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 1.6%, essentially flat. Margins also contracted 2.2pp. This is a business that needs a catalyst.
Free cash flow declined 15% versus the prior year, cash generation momentum has weakened. ROIC dropped from 54.23% to 50.33%, capital efficiency is deteriorating.
19.2x earnings, 17.3x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£221M
▲ +1.6% YoY
Net Income (TTM)
£51M
▼ -6.5% YoY
Op. Margin
28.44%
▼ -2.2pp YoY
ROIC
50.33%
▼ -3.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£55M
▼ -15.1% YoY
Op. Cash Flow (TTM)
£57M
▼ -20.1% YoY
Net Debt
-£97M
Net Cash Position
Cash & Equiv.
£99M
3Y CAGR: +6.1%
3Y CAGR: +14.4%
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At a P/E of 19.2 and a price-to-free-cash-flow of 17.3, Bytes Technology Group (BYIT.XLON) trades around a two-stage DCF intrinsic value of about £4.39 per share, so at £3.97 the stock looks around fair value (10.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Bytes Technology Group scores 85/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 5.1%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £4.39 per share for BYIT.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £3.29. At today's £3.97, that puts the stock about 10.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Bytes Technology Group scores 85 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 28.4% operating margin and a 50.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Bytes Technology Group pays a regular dividend of about £0.20 per share per year (typically in quarterly installments), a yield of roughly 5.1% at the current price. That is a payout ratio of about 94.8% of earnings, so the dividend is stretched at this level. Bytes Technology Group has grown the dividend at roughly 78.5% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For BYIT.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. BYIT.XLON currently trades around its estimated intrinsic value and scores 85/100 on quality (high-quality). It also yields about 5.1%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.