SCANSOURCE INC (SCSC)
US8060371072 - Common Stock
We assign a fundamental rating of 4 out of 10 to SCSC. SCSC was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an average financial health and profitability rating. SCSC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SCSC was profitable.
SCSC had a positive operating cash flow in the past year.
SCSC had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.95%, SCSC is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
SCSC's Return On Equity of 9.24% is fine compared to the rest of the industry. SCSC outperforms 68.80% of its industry peers.
SCSC has a better Return On Invested Capital (7.07%) than 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCSC is below the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.24% | ||
| ROIC | 7.07% |
ROA(3y)3.19%
ROA(5y)0.19%
ROE(3y)7.47%
ROE(5y)0.06%
ROIC(3y)7.11%
ROIC(5y)6.12%
1.3 Margins
With a Profit Margin value of 2.45%, SCSC perfoms like the industry average, outperforming 57.60% of the companies in the same industry.
In the last couple of years the Profit Margin of SCSC has grown nicely.
SCSC has a Operating Margin of 3.13%. This is comparable to the rest of the industry: SCSC outperforms 55.20% of its industry peers.
In the last couple of years the Operating Margin of SCSC has grown nicely.
The Gross Margin of SCSC (11.90%) is worse than 73.60% of its industry peers.
In the last couple of years the Gross Margin of SCSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.13% | ||
| PM (TTM) | 2.45% | ||
| GM | 11.9% |
OM growth 3Y25.36%
OM growth 5Y10.48%
PM growth 3YN/A
PM growth 5Y17.71%
GM growth 3Y0.54%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
SCSC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCSC has less shares outstanding
Compared to 1 year ago, SCSC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.39 indicates that SCSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SCSC (4.39) is better than 73.60% of its industry peers.
SCSC has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.91, SCSC is in the better half of the industry, outperforming 77.60% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that SCSC is not too dependend on debt financing.
SCSC's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. SCSC outperforms 50.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.79
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.30 indicates that SCSC has no problem at all paying its short term obligations.
SCSC has a Current ratio of 2.30. This is comparable to the rest of the industry: SCSC outperforms 48.00% of its industry peers.
A Quick Ratio of 1.36 indicates that SCSC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, SCSC is doing worse than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
SCSC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.87%.
Measured over the past 5 years, SCSC shows a small growth in Earnings Per Share. The EPS has been growing by 4.36% on average per year.
Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -4.51% in the last year.
Measured over the past years, SCSC shows a small growth in Revenue. The Revenue has been growing by 3.66% on average per year.
EPS 1Y (TTM)-18.87%
EPS 3Y23.38%
EPS 5Y4.36%
EPS growth Q2Q-19.81%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y7.51%
Revenue growth 5Y3.66%
Revenue growth Q2Q-12.5%
3.2 Future
SCSC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.41% yearly.
SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.64% yearly.
EPS Next Y-8.86%
EPS Next 2Y3.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.49%
Revenue Next 2Y0.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.30, which indicates a correct valuation of SCSC.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 83.20% of the companies listed in the same industry.
SCSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
With a Price/Forward Earnings ratio of 11.50, the valuation of SCSC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.30. SCSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
96.80% of the companies in the same industry are more expensive than SCSC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.28
EPS Next 2Y3.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SCANSOURCE INC
NASDAQ:SCSC (5/9/2024, 11:05:43 AM)
47.33
+0.74 (+1.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 11.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.13% | ||
| PM (TTM) | 2.45% | ||
| GM | 11.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.87%
EPS 3Y23.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y7.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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