SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
44.5 USD
-0.9 (-1.98%)
46.49 USD
+1.99 (+4.47%)
We assign a fundamental rating of 5 out of 10 to SCSC. SCSC was compared to 125 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCSC was profitable.
SCSC had a positive operating cash flow in the past year.
In the past 5 years SCSC has always 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 4.01% is fine compared to the rest of the industry. SCSC outperforms 68.80% of its industry peers.
Looking at the Return On Equity, with a value of 7.89%, SCSC is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
The Return On Invested Capital of SCSC (6.28%) is better than 67.20% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This is below the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROIC | 6.28% |
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 has a Profit Margin (2.35%) which is comparable to the rest of the industry.
SCSC's Profit Margin has declined in the last couple of years.
SCSC has a Operating Margin (2.98%) which is comparable to the rest of the industry.
SCSC's Operating Margin has improved in the last couple of years.
SCSC's Gross Margin of 13.44% is on the low side compared to the rest of the industry. SCSC is outperformed by 73.60% of its industry peers.
In the last couple of years the Gross Margin of SCSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
Compared to 1 year ago, SCSC has less shares outstanding
Compared to 5 years ago, SCSC has less shares outstanding
SCSC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that SCSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SCSC (3.80) is comparable to the rest of the industry.
SCSC has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
SCSC has a Debt to FCF ratio of 1.31. This is amongst the best in the industry. SCSC outperforms 80.80% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
The Debt to Equity ratio of SCSC (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.69
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.01 indicates that SCSC has no problem at all paying its short term obligations.
SCSC has a Current ratio (2.01) which is in line with its industry peers.
SCSC has a Quick Ratio of 1.30. This is a normal value and indicates that SCSC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, SCSC is doing worse than 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.91% over the past year.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -6.72% in the last year.
Measured over the past years, SCSC shows a decrease in Revenue. The Revenue has been decreasing by -0.05% on average per year.
EPS 1Y (TTM)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
3.2 Future
SCSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
Based on estimates for the next years, SCSC will show a small growth in Revenue. The Revenue will grow by 5.03% on average per year.
EPS Next Y7.71%
EPS Next 2Y11.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.84%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.46, the valuation of SCSC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 96.00% of the companies listed in the same industry.
SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 11.57 indicates a reasonable valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
SCSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
SCSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.62
PEG (5Y)1.06
EPS Next 2Y11.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.5
-0.9 (-1.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.26%
Inst Owner Change-6.77%
Ins Owners2.02%
Ins Owner Change15.12%
Market Cap973.66M
Analysts82.5
Price Target59.16 (32.94%)
Short Float %2.22%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)8.55%
Min EPS beat(2)8.3%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)3.65%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.79%
EPS beat(8)3
Avg EPS beat(8)-6.79%
EPS beat(12)6
Avg EPS beat(12)-4.22%
EPS beat(16)9
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-7.62%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.63%
Revenue beat(12)4
Avg Revenue beat(12)-4.9%
Revenue beat(16)7
Avg Revenue beat(16)-2.61%
PT rev (1m)16%
PT rev (3m)19.18%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.32 | ||
| P/FCF | 9.36 | ||
| P/OCF | 8.67 | ||
| P/B | 1.07 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)3.57
EY8.02%
EPS(NY)3.85
Fwd EY8.64%
FCF(TTM)4.76
FCFY10.69%
OCF(TTM)5.13
OCFY11.54%
SpS138.98
BVpS41.43
TBVpS28
PEG (NY)1.62
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 10.15% | ||
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% | ||
| FCFM | 3.42% |
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%
ROICexcg growth 3Y-5.14%
ROICexcg 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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 11.97 | ||
| Cash Conversion | 93.02% | ||
| Profit Quality | 145.45% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.8 |
F-Score6
WACC9.08%
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)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
EPS Next Y7.71%
EPS Next 2Y11.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
Revenue Next Year5.84%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.35%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.34%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-69.77%
OCF growth 3YN/A
OCF growth 5Y-13.07%