SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
41.47 USD
+0.82 (+2.02%)
41.47 USD
0 (0%)
SCSC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has only an average score on both its financial health and profitability. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! This makes SCSC very considerable 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.
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
SCSC has a Return On Assets of 4.34%. This is in the better half of the industry: SCSC outperforms 67.48% of its industry peers.
Looking at the Return On Equity, with a value of 8.15%, SCSC is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
SCSC has a better Return On Invested Capital (6.46%) than 65.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCSC is below the industry average of 9.58%.
| 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 in line compared to the rest of the industry. SCSC outperforms 57.72% of its industry peers.
SCSC's Profit Margin has declined in the last couple of years.
The Operating Margin of SCSC (3.12%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCSC has grown nicely.
SCSC has a worse Gross Margin (13.79%) than 73.98% of its industry peers.
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
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
The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
SCSC has an Altman-Z score of 3.92. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.92, SCSC perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
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 78.86% of its industry peers.
SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, SCSC perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.92 |
ROIC/WACC0.72
WACC9%
2.3 Liquidity
SCSC has a Current Ratio of 2.16. This indicates that SCSC is financially healthy and has no problem in meeting 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 has a Quick ratio of 1.32. This is in the lower half of the industry: SCSC underperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.18%, which is quite good.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
The Revenue has decreased by -4.88% in the past year.
SCSC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.
EPS 1Y (TTM)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%-4.63%
3.2 Future
Based on estimates for the next years, SCSC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.78% on average per year.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y16.43%
EPS Next 2Y16.13%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue Next Year5.64%
Revenue Next 2Y5.15%
Revenue Next 3Y5.71%
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.
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
The Price/Earnings ratio is 10.94, which indicates a very decent valuation of SCSC.
Based on the Price/Earnings ratio, SCSC is valued cheaper than 93.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. SCSC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.61, the valuation of SCSC can be described as reasonable.
95.12% of the companies in the same industry are more expensive than SCSC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (34.43), we can say SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 95.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
SCSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SCSC's earnings are expected to grow with 24.78% in the coming years.
PEG (NY)0.67
PEG (5Y)0.93
EPS Next 2Y16.13%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.47
+0.82 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.36%
Inst Owner Change-0.06%
Ins Owners2.8%
Ins Owner Change12.93%
Market Cap907.36M
Revenue(TTM)3.00B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (30.36%)
Short Float %1.84%
Short Ratio1.62
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)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)-8.62%
PT rev (3m)6%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)3.08%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.3 | ||
| P/FCF | 11.01 | ||
| P/OCF | 10 | ||
| P/B | 0.99 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)3.79
EY9.14%
EPS(NY)4.81
Fwd EY11.61%
FCF(TTM)3.77
FCFY9.08%
OCF(TTM)4.15
OCFY10%
SpS137.33
BVpS41.77
TBVpS28.54
PEG (NY)0.67
PEG (5Y)0.93
Graham Number59.69
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 | 3.92 |
F-Score7
WACC9%
ROIC/WACC0.72
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)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
EPS Next Y16.43%
EPS Next 2Y16.13%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%-4.63%
Revenue Next Year5.64%
Revenue Next 2Y5.15%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.47%
EBIT Next 3YN/A
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 5 / 10 to SCSC.
Can you provide the valuation status for SCANSOURCE INC?
ChartMill assigns a valuation rating of 8 / 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.
How financially healthy is SCANSOURCE INC?
The financial health rating of SCANSOURCE INC (SCSC) is 6 / 10.
Can you provide the expected EPS growth for SCSC stock?
The Earnings per Share (EPS) of SCANSOURCE INC (SCSC) is expected to grow by 16.43% in the next year.