SCANSOURCE INC (SCSC) Fundamental Analysis & Valuation

NASDAQ:SCSC • US8060371072

Current stock price

36.05 USD
-0.74 (-2.01%)
At close:
36.05 USD
0 (0%)
After Hours:

This SCSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. SCSC Profitability Analysis

1.1 Basic Checks

  • SCSC had positive earnings in the past year.
  • SCSC had a positive operating cash flow in the past year.
  • In the past 5 years SCSC has always been profitable.
  • The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple years.
SCSC Yearly Net Income VS EBIT VS OCF VS FCFSCSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • With a decent Return On Assets value of 4.24%, SCSC is doing good in the industry, outperforming 66.94% of the companies in the same industry.
  • SCSC has a Return On Equity of 8.11%. This is in the better half of the industry: SCSC outperforms 64.52% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.59%, SCSC is in the better half of the industry, outperforming 68.55% of the companies in the same industry.
  • SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This is in line with the industry average of 8.36%.
Industry RankSector Rank
ROA 4.24%
ROE 8.11%
ROIC 6.59%
ROA(3y)4.23%
ROA(5y)3.58%
ROE(3y)8.72%
ROE(5y)7.73%
ROIC(3y)6.97%
ROIC(5y)7%
SCSC Yearly ROA, ROE, ROICSCSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.44%, SCSC is in line with its industry, outperforming 58.87% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SCSC has declined.
  • The Operating Margin of SCSC (3.07%) is comparable to the rest of the industry.
  • SCSC's Operating Margin has improved in the last couple of years.
  • The Gross Margin of SCSC (13.75%) is worse than 73.39% of its industry peers.
  • SCSC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.07%
PM (TTM) 2.44%
GM 13.75%
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%
SCSC Yearly Profit, Operating, Gross MarginsSCSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

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6

2. SCSC Health Analysis

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.
  • 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.
SCSC Yearly Shares OutstandingSCSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
SCSC Yearly Total Debt VS Total AssetsSCSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • SCSC has an Altman-Z score of 3.75. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
  • SCSC has a Altman-Z score (3.75) which is in line with its industry peers.
  • SCSC has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
  • SCSC has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. SCSC outperforms 85.48% of its industry peers.
  • SCSC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of SCSC (0.11) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.86
Altman-Z 3.75
ROIC/WACC0.71
WACC9.34%
SCSC Yearly LT Debt VS Equity VS FCFSCSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

2.3 Liquidity

  • SCSC has a Current Ratio of 1.96. 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 Current ratio, with a value of 1.96, SCSC is doing worse than 62.10% of the companies in the same industry.
  • SCSC has a Quick Ratio of 1.22. 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 1.22. This is in the lower half of the industry: SCSC underperforms 66.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.22
SCSC Yearly Current Assets VS Current LiabilitesSCSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SCSC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.61% over the past year.
  • SCSC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
  • The Revenue has been growing slightly by 0.07% 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)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%

3.2 Future

  • The Earnings Per Share is expected to grow by 22.48% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, SCSC will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y13.24%
EPS Next 2Y11.87%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year1.79%
Revenue Next 2Y2.89%
Revenue Next 3Y5.09%
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 accelerating.
SCSC Yearly Revenue VS EstimatesSCSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
SCSC Yearly EPS VS EstimatesSCSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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8

4. SCSC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.64, which indicates a very decent valuation of SCSC.
  • SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.55% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, SCSC is valued rather cheaply.
  • The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of SCSC.
  • 92.74% of the companies in the same industry are more expensive than SCSC, based on the Price/Forward Earnings ratio.
  • SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.64
Fwd PE 8.07
SCSC Price Earnings VS Forward Price EarningsSCSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 92.74% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
  • SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.48
EV/EBITDA 6.77
SCSC Per share dataSCSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

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 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)0.82
EPS Next 2Y11.87%
EPS Next 3Y22.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SCSC Dividend Analysis

5.1 Amount

  • SCSC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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SCSC Fundamentals: All Metrics, Ratios and Statistics

SCANSOURCE INC

NASDAQ:SCSC (3/27/2026, 8:00:01 PM)

After market: 36.05 0 (0%)

36.05

-0.74 (-2.01%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners102.31%
Inst Owner Change0.17%
Ins Owners1.92%
Ins Owner Change-5.28%
Market Cap774.35M
Revenue(TTM)3.02B
Net Income(TTM)73.89M
Analysts80
Price Target52.7 (46.19%)
Short Float %2.98%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)-5.31%
Min EPS beat(2)-22.36%
Max EPS beat(2)11.74%
EPS beat(4)3
Avg EPS beat(4)1.62%
Min EPS beat(4)-22.36%
Max EPS beat(4)11.74%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)5
Avg EPS beat(12)-5.15%
EPS beat(16)8
Avg EPS beat(16)-1.07%
Revenue beat(2)0
Avg Revenue beat(2)-5.74%
Min Revenue beat(2)-7.9%
Max Revenue beat(2)-3.58%
Revenue beat(4)1
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.19%
Revenue beat(12)2
Avg Revenue beat(12)-6.54%
Revenue beat(16)6
Avg Revenue beat(16)-3.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-6.34%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-3.17%
Valuation
Industry RankSector Rank
PE 9.64
Fwd PE 8.07
P/S 0.26
P/FCF 6.48
P/OCF 6.06
P/B 0.85
P/tB 1.3
EV/EBITDA 6.77
EPS(TTM)3.74
EY10.37%
EPS(NY)4.47
Fwd EY12.39%
FCF(TTM)5.56
FCFY15.43%
OCF(TTM)5.95
OCFY16.5%
SpS140.78
BVpS42.41
TBVpS27.67
PEG (NY)0.73
PEG (5Y)0.82
Graham Number59.74
Profitability
Industry RankSector Rank
ROA 4.24%
ROE 8.11%
ROCE 8.62%
ROIC 6.59%
ROICexc 7.15%
ROICexgc 10.49%
OM 3.07%
PM (TTM) 2.44%
GM 13.75%
FCFM 3.95%
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 Turnover1.74
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.86
Debt/EBITDA 0.83
Cap/Depr 31.08%
Cap/Sales 0.27%
Interest Coverage 250
Cash Conversion 106.8%
Profit Quality 161.66%
Current Ratio 1.96
Quick Ratio 1.22
Altman-Z 3.75
F-Score7
WACC9.34%
ROIC/WACC0.71
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)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
EPS Next Y13.24%
EPS Next 2Y11.87%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)0.07%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year1.79%
Revenue Next 2Y2.89%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y9%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year28.44%
EBIT Next 3Y18.83%
EBIT Next 5YN/A
FCF growth 1Y-35.67%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-34.9%
OCF growth 3YN/A
OCF growth 5Y-13.07%

SCANSOURCE INC / SCSC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SCANSOURCE INC?

ChartMill assigns a fundamental rating of 5 / 10 to SCSC.


What is the valuation status of SCANSOURCE INC (SCSC) stock?

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.


Can you provide the financial health for SCSC stock?

The financial health rating of SCANSOURCE INC (SCSC) is 6 / 10.