SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
42.78 USD
-1.33 (-3.02%)
We assign a fundamental rating of 5 out of 10 to SCSC. SCSC was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an average financial health and profitability rating. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make SCSC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
SCSC had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 4.01%, SCSC is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
With a decent Return On Equity value of 7.89%, SCSC is doing good in the industry, outperforming 68.55% of the companies in the same industry.
SCSC's Return On Invested Capital of 6.28% is fine compared to the rest of the industry. SCSC outperforms 66.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCSC is below the industry average of 9.44%.
| 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 of 2.35%. This is comparable to the rest of the industry: SCSC outperforms 59.68% of its industry peers.
In the last couple of years the Profit Margin of SCSC has declined.
Looking at the Operating Margin, with a value of 2.98%, SCSC is in line with its industry, outperforming 56.45% of the companies in the same industry.
In the last couple of years the Operating Margin of SCSC has grown nicely.
With a Gross Margin value of 13.44%, SCSC is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
SCSC's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCSC is destroying value.
Compared to 1 year ago, SCSC has less shares outstanding
SCSC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.79 indicates that SCSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.79, SCSC is in line with its industry, outperforming 57.26% of the companies in the same 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.
The Debt to FCF ratio of SCSC (1.31) is better than 79.84% 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 52.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.7
WACC8.97%
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.
A Quick Ratio of 1.30 indicates that SCSC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, SCSC is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -6.72% in the past 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 12.59% yearly.
SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y12.95%
EPS Next 2Y12.59%
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
With a Price/Earnings ratio of 11.98, the valuation of SCSC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (27.86), we can say SCSC is valued rather cheaply.
The Price/Forward Earnings ratio is 10.61, which indicates a very decent valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 95.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
94.35% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 95.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 8.07 |
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 12.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)1.02
EPS Next 2Y12.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SCSC (10/6/2025, 3:42:07 PM)
42.78
-1.33 (-3.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.36%
Inst Owner Change0%
Ins Owners2.8%
Ins Owner Change12.93%
Market Cap936.03M
Analysts82.5
Price Target59.16 (38.29%)
Short Float %2.41%
Short Ratio1.84
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)7.41%
PT rev (3m)16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)4.86%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.61 | ||
| P/S | 0.31 | ||
| P/FCF | 8.99 | ||
| P/OCF | 8.33 | ||
| P/B | 1.03 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)3.57
EY8.35%
EPS(NY)4.03
Fwd EY9.43%
FCF(TTM)4.76
FCFY11.12%
OCF(TTM)5.13
OCFY12%
SpS138.98
BVpS41.43
TBVpS28
PEG (NY)0.93
PEG (5Y)1.02
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 | 3.79 |
F-Score6
WACC8.97%
ROIC/WACC0.7
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 Y12.95%
EPS Next 2Y12.59%
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 Year36.47%
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%