SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC - Nasdaq - US8060371072 - Common Stock - Currency: USD
SCSC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is valued quite cheap, but it does not seem to be growing. These ratings could make SCSC a good candidate 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.
In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.92%, SCSC is doing good in the industry, outperforming 68.80% of the companies in the same industry.
With a decent Return On Equity value of 7.49%, SCSC is doing good in the industry, outperforming 68.80% of the companies in the same industry.
SCSC has a better Return On Invested Capital (5.88%) than 66.40% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 7.48%. This is in line with the industry average of 9.35%.
| 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
SCSC has a Profit Margin of 2.27%. This is in the better half of the industry: SCSC outperforms 63.20% of its industry peers.
SCSC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.90%, SCSC is in line with its industry, outperforming 55.20% of the companies in the same industry.
SCSC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 13.48%, SCSC is not doing good in the industry: 72.80% of the companies in the same industry are doing better.
SCSC's Gross Margin has been stable in the last couple of years.
| 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
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
Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
SCSC has an Altman-Z score of 3.86. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a Altman-Z score of 3.86. This is in the better half of the industry: SCSC outperforms 63.20% of its industry peers.
SCSC has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.91, SCSC belongs to the best of the industry, outperforming 83.20% of the companies in the same industry.
SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
SCSC's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. SCSC outperforms 51.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.71
WACC8.32%
2.3 Liquidity
SCSC has a Current Ratio of 2.07. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCSC (2.07) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that SCSC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, SCSC is not doing good in the industry: 64.80% of the companies in the same industry are doing better.
| 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.
SCSC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.73% yearly.
The Revenue for SCSC has decreased by -14.06% in the past year. This is quite bad
Measured over the past years, SCSC shows a small growth in Revenue. The Revenue has been growing by 0.06% on average per year.
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 16.14% on average per year.
The Revenue is expected to decrease by -0.30% on average over the next years.
EPS Next Y11.27%
EPS Next 2Y13.03%
EPS Next 3Y16.14%
EPS Next 5YN/A
Revenue Next Year-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.3%
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
A Price/Earnings ratio of 12.07 indicates a correct valuation of SCSC.
Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
SCSC is valuated reasonably with a Price/Forward Earnings ratio of 10.28.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 93.60% of the companies in the same industry.
SCSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6 | ||
| EV/EBITDA | 7.81 |
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)1.07
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 |
40.435
-0.92 (-2.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.12%
Inst Owner Change-7.09%
Ins Owners2.06%
Ins Owner Change-2.04%
Market Cap913.83M
Analysts82.22
Price Target49.64 (22.76%)
Short Float %7.45%
Short Ratio5.71
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)-3.63%
PT rev (3m)-11.52%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-5.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.31 | ||
| P/FCF | 6 | ||
| P/OCF | 5.73 | ||
| P/B | 1.01 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)3.35
EY8.28%
EPS(NY)3.93
Fwd EY9.73%
FCF(TTM)6.74
FCFY16.68%
OCF(TTM)7.06
OCFY17.45%
SpS131.59
BVpS39.9
TBVpS26.77
PEG (NY)1.07
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 | 3.86 |
F-Score6
WACC8.32%
ROIC/WACC0.71
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-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.3%
Revenue Next 5YN/A
EBIT growth 1Y-13.63%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year16.8%
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