SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC - Nasdaq - US8060371072 - Common Stock - Currency: USD
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SCSC has a bad growth rate and is valued cheaply. 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.
Of the past 5 years SCSC 4 years were 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 better Return On Assets (3.92%) than 68.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.49%, SCSC is in the better half of the industry, outperforming 69.60% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.88%, SCSC is doing good in the industry, outperforming 68.00% 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 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 7.49% | ||
| ROIC | 5.88% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
1.3 Margins
The Profit Margin of SCSC (2.27%) is better than 61.60% of its industry peers.
In the last couple of years the Profit Margin of SCSC has grown nicely.
With a Operating Margin value of 2.90%, SCSC perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SCSC has remained more or less at the same level.
SCSC has a worse Gross Margin (13.48%) than 71.20% 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 | 2.9% | ||
| PM (TTM) | 2.27% | ||
| GM | 13.48% |
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
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.
The number of shares outstanding for SCSC has been reduced compared to 1 year ago.
SCSC has less shares outstanding than it did 5 years ago.
SCSC has a better debt/assets ratio than last year.
2.2 Solvency
SCSC has an Altman-Z score of 3.87. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a better Altman-Z score (3.87) than 64.80% of its industry peers.
The Debt to FCF ratio of SCSC is 0.91, which is an excellent value as it means it would take SCSC, only 0.91 years of fcf income to pay off all of its debts.
SCSC's Debt to FCF ratio of 0.91 is amongst the best of the industry. SCSC outperforms 83.20% 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 | 0.91 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.65
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.07 indicates that SCSC has no problem at all paying its short term obligations.
The Current ratio of SCSC (2.07) 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 worse Quick ratio (1.32) than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
The Earnings Per Share has been decreasing by -1.73% on average over the past years.
The Revenue for SCSC has decreased by -14.06% in the past year. This is quite bad
SCSC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.06% yearly.
EPS 1Y (TTM)10.2%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%24.64%
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-6.34%
3.2 Future
The Earnings Per Share is expected to grow by 16.14% on average over the next years. This is quite good.
SCSC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.30% yearly.
EPS Next Y11.27%
EPS Next 2Y13.03%
EPS Next 3Y16.14%
EPS Next 5YN/A
Revenue Next Year-10.37%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 11.72, the valuation of SCSC can be described as very reasonable.
92.80% of the companies in the same industry are more expensive than SCSC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.82. SCSC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.98 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.
When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (21.76), we can say SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
SCSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCSC is cheaper than 92.00% of the companies in the same industry.
96.00% 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 | 6.04 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SCSC's earnings are expected to grow with 16.14% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y13.03%
EPS Next 3Y16.14%
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.27
-0.53 (-1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-7.3%
Ins Owners2.03%
Ins Owner Change-0.48%
Market Cap921.27M
Analysts77.78
Price Target51.51 (31.17%)
Short Float %8.66%
Short Ratio6.36
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)1
Avg EPS beat(2)0.35%
Min EPS beat(2)-8.09%
Max EPS beat(2)8.79%
EPS beat(4)2
Avg EPS beat(4)-2.42%
Min EPS beat(4)-15.97%
Max EPS beat(4)8.79%
EPS beat(8)2
Avg EPS beat(8)-7.91%
EPS beat(12)5
Avg EPS beat(12)-5.58%
EPS beat(16)9
Avg EPS beat(16)6.33%
Revenue beat(2)0
Avg Revenue beat(2)-14.07%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)-13.54%
Revenue beat(4)0
Avg Revenue beat(4)-11.58%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)-4.95%
Revenue beat(8)1
Avg Revenue beat(8)-8.52%
Revenue beat(12)4
Avg Revenue beat(12)-4.75%
Revenue beat(16)7
Avg Revenue beat(16)-1.9%
PT rev (1m)0%
PT rev (3m)-11.4%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-7.82%
Revenue NQ rev (3m)-7.82%
Revenue NY rev (1m)-4.06%
Revenue NY rev (3m)-5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 9.98 | ||
| P/S | 0.31 | ||
| P/FCF | 6.04 | ||
| P/OCF | 5.78 | ||
| P/B | 1.02 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)3.35
EY8.53%
EPS(NY)3.93
Fwd EY10.02%
FCF(TTM)6.5
FCFY16.54%
OCF(TTM)6.8
OCFY17.31%
SpS126.77
BVpS38.44
TBVpS25.79
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 7.49% | ||
| ROCE | 7.87% | ||
| ROIC | 5.88% | ||
| ROICexc | 6.79% | ||
| ROICexgc | 9.89% | ||
| OM | 2.9% | ||
| PM (TTM) | 2.27% | ||
| GM | 13.48% | ||
| FCFM | 5.12% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
ROICexc(3y)8.08%
ROICexc(5y)6.93%
ROICexgc(3y)10.86%
ROICexgc(5y)9.8%
ROCE(3y)10.01%
ROCE(5y)8.65%
ROICexcg growth 3Y2.78%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y8.23%
ROICexc growth 5Y7.82%
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
F-Score6
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 23.55% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.47% | ||
| Profit Quality | 225.6% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.87 |
F-Score6
WACC9.06%
ROIC/WACC0.65
Cap/Depr(3y)29.42%
Cap/Depr(5y)22.71%
Cap/Sales(3y)0.24%
Cap/Sales(5y)0.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%24.64%
EPS Next Y11.27%
EPS Next 2Y13.03%
EPS Next 3Y16.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-6.34%
Revenue Next Year-10.37%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.3%
Revenue Next 5YN/A
EBIT growth 1Y-13.63%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year14.33%
EBIT Next 3Y12.03%
EBIT Next 5YN/A
FCF growth 1Y239.56%
FCF growth 3Y37.89%
FCF growth 5YN/A
OCF growth 1Y260.73%
OCF growth 3Y38.17%
OCF growth 5YN/A