43.14 USD
+0.58 (+1.36%)
Last: Jan 30, 2026, 02:55 PM
We assign a fundamental rating of 6 out of 10 to SCSC. SCSC was compared to 123 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
- SCSC had positive earnings in each of the past 5 years.
- In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SCSC has a Return On Assets of 4.34%. This is in the better half of the industry: SCSC outperforms 69.11% of its industry peers.
- With a decent Return On Equity value of 8.15%, SCSC is doing good in the industry, outperforming 68.29% of the companies in the same industry.
- SCSC has a better Return On Invested Capital (6.46%) than 66.67% of its industry peers.
- 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 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.15% | ||
| ROIC | 6.46% |
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's Profit Margin of 2.48% is fine compared to the rest of the industry. SCSC outperforms 60.98% of its industry peers.
- SCSC's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 3.12%, SCSC perfoms like the industry average, outperforming 56.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCSC has grown nicely.
- SCSC has a Gross Margin of 13.79%. This is in the lower half of the industry: SCSC underperforms 73.17% of its industry peers.
- SCSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 2.48% | ||
| GM | 13.79% |
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
- 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 3.95. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.95, SCSC is doing good in the industry, outperforming 60.98% of the companies in the same industry.
- The Debt to FCF ratio of SCSC is 1.62, which is an excellent value as it means it would take SCSC, only 1.62 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of SCSC (1.62) is better than 81.30% 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 52.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.95 |
ROIC/WACC0.78
WACC8.28%
2.3 Liquidity
- A Current Ratio of 2.16 indicates that SCSC has no problem at all paying its short term obligations.
- With a Current ratio value of 2.16, SCSC perfoms like the industry average, outperforming 42.28% of the companies in the same industry.
- A Quick Ratio of 1.32 indicates that SCSC should not have too much problems paying its short term obligations.
- The Quick ratio of SCSC (1.32) is worse than 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.18% over the past year.
- Measured over the past years, SCSC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.73% on average per year.
- The Revenue has decreased by -4.88% 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)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%-4.63%
3.2 Future
- SCSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.78% yearly.
- The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.71%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.38, the valuation of SCSC can be described as very reasonable.
- SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.50% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (28.39), we can say SCSC is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.94, which indicates a very decent valuation of SCSC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.12% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (25.72), we can say SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
- 93.50% 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 93.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
- SCSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as SCSC's earnings are expected to grow with 24.78% in the coming years.
PEG (NY)0.54
PEG (5Y)0.97
EPS Next 2Y16.28%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
- SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SCANSOURCE INC / SCSC FAQ
Can you provide the ChartMill fundamental rating for SCANSOURCE INC?
ChartMill assigns a fundamental rating of 6 / 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 7 / 10.