SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC • US8060371072
37.24 USD
-0.01 (-0.03%)
At close: Feb 20, 2026
37.24 USD
0 (0%)
After Hours: 2/20/2026, 8:04:31 PM
SCSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an excellent financial health rating, but there are some minor concerns on its profitability. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SCSC suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year SCSC was profitable.
- In the past year SCSC had a positive cash flow from operations.
- Each year in the past 5 years SCSC has been profitable.
- In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SCSC's Return On Assets of 4.34% is fine compared to the rest of the industry. SCSC outperforms 68.85% of its industry peers.
- The Return On Equity of SCSC (8.15%) is better than 66.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.46%, SCSC is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SCSC is in line with the industry average of 8.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.15% | ||
| ROIC | 6.46% |
ROA(3y)4.23%
ROA(5y)3.58%
ROE(3y)8.72%
ROE(5y)7.73%
ROIC(3y)6.97%
ROIC(5y)7%
1.3 Margins
- SCSC's Profit Margin of 2.48% is fine compared to the rest of the industry. SCSC outperforms 61.48% of its industry peers.
- In the last couple of years the Profit Margin of SCSC has declined.
- With a Operating Margin value of 3.12%, SCSC perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCSC has grown nicely.
- Looking at the Gross Margin, with a value of 13.79%, SCSC is doing worse than 72.13% of the companies in the same industry.
- In the last couple of years the Gross Margin of SCSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 2.48% | ||
| GM | 13.79% |
OM growth 3Y-4.89%
OM growth 5Y10.34%
PM growth 3Y-2.2%
PM growth 5YN/A
GM growth 3Y3.61%
GM growth 5Y2.87%
2. Health
2.1 Basic Checks
- SCSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SCSC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SCSC has less shares outstanding
- The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.85 indicates that SCSC is not in any danger for bankruptcy at the moment.
- SCSC's Altman-Z score of 3.85 is fine compared to the rest of the industry. SCSC outperforms 64.75% of its industry peers.
- SCSC has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
- The Debt to FCF ratio of SCSC (1.62) is better than 81.97% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.14, SCSC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.69
WACC9.3%
2.3 Liquidity
- A Current Ratio of 2.16 indicates that SCSC has no problem at all paying its short term obligations.
- SCSC has a Current ratio (2.16) which is comparable to the rest of the industry.
- SCSC has a Quick Ratio of 1.32. This is a normal value and indicates that SCSC is financially healthy and should not expect problems in meeting its short term obligations.
- SCSC's Quick ratio of 1.32 is on the low side compared to the rest of the industry. SCSC is outperformed by 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.61% over the past year.
- Measured over the past years, SCSC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.73% on average per year.
- Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -6.72% in the last year.
- The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
3.2 Future
- The Earnings Per Share is expected to grow by 22.48% on average over the next years. This is a very strong growth
- SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.96 indicates a reasonable valuation of SCSC.
- 92.62% of the companies in the same industry are more expensive than SCSC, based on the Price/Earnings ratio.
- SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
- SCSC is valuated cheaply with a Price/Forward Earnings ratio of 7.71.
- Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 95.90% of the companies in the same industry.
- SCSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 96.72% of the companies in the same industry.
- SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 92.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SCSC's earnings are expected to grow with 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.85
EPS Next 2Y16.28%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
37.24
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners102.36%
Inst Owner Change0.49%
Ins Owners1.86%
Ins Owner Change13.14%
Market Cap799.92M
Revenue(TTM)3.04B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (45.17%)
Short Float %3.31%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.02%
Min EPS beat(2)8.3%
Max EPS beat(2)11.74%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-8.09%
Max EPS beat(4)11.74%
EPS beat(8)4
Avg EPS beat(8)-2.86%
EPS beat(12)6
Avg EPS beat(12)-3.26%
EPS beat(16)9
Avg EPS beat(16)1.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-7.9%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-8.36%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.78%
Revenue beat(12)3
Avg Revenue beat(12)-5.69%
Revenue beat(16)6
Avg Revenue beat(16)-3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.27 | ||
| P/FCF | 9.7 | ||
| P/OCF | 8.82 | ||
| P/B | 0.88 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)3.74
EY10.04%
EPS(NY)4.83
Fwd EY12.96%
FCF(TTM)3.84
FCFY10.3%
OCF(TTM)4.22
OCFY11.34%
SpS139.89
BVpS42.55
TBVpS29.07
PEG (NY)0.48
PEG (5Y)0.85
Graham Number59.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.15% | ||
| ROCE | 8.44% | ||
| ROIC | 6.46% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 10.3% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.48% | ||
| GM | 13.79% | ||
| FCFM | 2.74% |
ROA(3y)4.23%
ROA(5y)3.58%
ROE(3y)8.72%
ROE(5y)7.73%
ROIC(3y)6.97%
ROIC(5y)7%
ROICexc(3y)7.76%
ROICexc(5y)7.61%
ROICexgc(3y)10.54%
ROICexgc(5y)10.66%
ROCE(3y)9.12%
ROCE(5y)9.15%
ROICexgc growth 3Y-5.14%
ROICexgc growth 5Y7.76%
ROICexc growth 3Y-6.26%
ROICexc growth 5Y9.54%
OM growth 3Y-4.89%
OM growth 5Y10.34%
PM growth 3Y-2.2%
PM growth 5YN/A
GM growth 3Y3.61%
GM growth 5Y2.87%
F-Score7
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 28.72% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.94% | ||
| Profit Quality | 110.71% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.85 |
F-Score7
WACC9.3%
ROIC/WACC0.69
Cap/Depr(3y)30.98%
Cap/Depr(5y)24.57%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year37.15%
EBIT Next 3Y18.83%
EBIT Next 5YN/A
FCF growth 1Y-13.87%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-14.57%
OCF growth 3YN/A
OCF growth 5Y-13.07%
SCANSOURCE INC / SCSC FAQ
Can you provide the ChartMill fundamental rating for SCANSOURCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SCSC.
What is the valuation status of SCANSOURCE INC (SCSC) stock?
ChartMill assigns a valuation rating of 9 / 10 to SCANSOURCE INC (SCSC). This can be considered as Undervalued.
How profitable is SCANSOURCE INC (SCSC) stock?
SCANSOURCE INC (SCSC) has a profitability rating of 5 / 10.
Can you provide the financial health for SCSC stock?
The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.