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 124 industry peers in the Electronic Equipment, Instruments & Components industry. While SCSC has a great health rating, its profitability is only average at the moment. SCSC is valued quite cheap, but it does not seem to be growing. 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.
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 Return On Assets of 3.92%. This is in the better half of the industry: SCSC outperforms 69.35% of its industry peers.
SCSC has a Return On Equity of 7.49%. This is in the better half of the industry: SCSC outperforms 68.55% of its industry peers.
The Return On Invested Capital of SCSC (5.88%) is better than 64.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCSC is below the industry average of 9.64%.
| 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 61.29% of its industry peers.
SCSC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.90%, SCSC perfoms like the industry average, outperforming 57.26% of the companies in the same industry.
SCSC's Operating Margin has been stable in the last couple of years.
SCSC's Gross Margin of 13.48% is on the low side compared to the rest of the industry. SCSC is outperformed by 74.19% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCSC 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
An Altman-Z score of 3.89 indicates that SCSC is not in any danger for bankruptcy at the moment.
SCSC has a Altman-Z score of 3.89. This is in the better half of the industry: SCSC outperforms 62.90% 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.
Looking at the Debt to FCF ratio, with a value of 0.91, SCSC belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, SCSC is in line with its industry, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.64
WACC9.17%
2.3 Liquidity
A Current Ratio of 2.07 indicates that SCSC has no problem at all paying its short term obligations.
With a Current ratio value of 2.07, SCSC perfoms like the industry average, outperforming 45.16% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.32, SCSC is doing worse than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| 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 10.20%, which is quite good.
Measured over the past years, SCSC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.73% on average per year.
SCSC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.06%.
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
Based on estimates for the next years, SCSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.27% on average per year.
The Revenue is expected to decrease by -0.58% on average over the next years.
EPS Next Y15.25%
EPS Next 2Y11.74%
EPS Next 3Y11.27%
EPS Next 5YN/A
Revenue Next Year-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.58%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.72, the valuation of SCSC can be described as correct.
Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (26.84), we can say SCSC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.08, the valuation of SCSC can be described as reasonable.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 94.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (35.29), we can say SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 94.35% of the companies listed in the same industry.
SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 97.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 8.23 |
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.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y11.74%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.6
-1.3 (-2.96%)
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 Change-2.71%
Market Cap962.76M
Analysts82.5
Price Target51 (19.72%)
Short Float %5.33%
Short Ratio5.62
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)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)-0.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)0%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.32 | ||
| P/FCF | 6.32 | ||
| P/OCF | 6.04 | ||
| P/B | 1.07 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)3.35
EY7.86%
EPS(NY)3.85
Fwd EY9.03%
FCF(TTM)6.74
FCFY15.83%
OCF(TTM)7.06
OCFY16.56%
SpS131.59
BVpS39.9
TBVpS26.77
PEG (NY)0.83
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 | 3.89 |
F-Score6
WACC9.17%
ROIC/WACC0.64
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 Y15.25%
EPS Next 2Y11.74%
EPS Next 3Y11.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-6.34%
Revenue Next Year-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.58%
Revenue Next 5YN/A
EBIT growth 1Y-13.63%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year16.8%
EBIT Next 3Y9.79%
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