39.53 USD
-0.49 (-1.22%)
39.53 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SCSC. SCSC was compared to 124 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SCSC. These ratings would make SCSC suitable for value investing!
1. Profitability
1.1 Basic Checks
SCSC had positive earnings in the past year.
In the past year SCSC had a positive cash flow from operations.
Each year in the past 5 years SCSC has been 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's Return On Assets of 4.34% is fine compared to the rest of the industry. SCSC outperforms 67.74% of its industry peers.
SCSC has a Return On Equity of 8.15%. This is in the better half of the industry: SCSC outperforms 68.55% of its industry peers.
SCSC has a Return On Invested Capital of 6.46%. This is in the better half of the industry: SCSC outperforms 66.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCSC is below the industry average of 9.32%.
| 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 in line compared to the rest of the industry. SCSC outperforms 57.26% of its industry peers.
SCSC's Profit Margin has declined in the last couple of years.
SCSC's Operating Margin of 3.12% is in line compared to the rest of the industry. SCSC outperforms 55.65% of its industry peers.
In the last couple of years the Operating Margin of SCSC has grown nicely.
Looking at the Gross Margin, with a value of 13.79%, SCSC is doing worse than 73.39% of the companies in the same industry.
In the last couple of years the Gross Margin of SCSC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
The number of shares outstanding for SCSC has been reduced compared to 1 year ago.
The number of shares outstanding for SCSC has been reduced compared to 5 years ago.
The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
SCSC has an Altman-Z score of 3.91. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.91, SCSC perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
SCSC has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
SCSC has a better Debt to FCF ratio (1.62) than 80.65% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
SCSC has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: SCSC outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.74
WACC8.75%
2.3 Liquidity
SCSC has a Current Ratio of 2.16. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
SCSC has a Current ratio (2.16) which is in line with its industry peers.
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.
The Quick ratio of SCSC (1.32) is worse than 62.90% 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.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
SCSC shows a decrease in Revenue. In the last year, the revenue decreased by -4.88%.
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
Based on estimates for the next years, SCSC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.78% on average per year.
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 Year5.12%
Revenue Next 2Y5.09%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.43, the valuation of SCSC can be described as reasonable.
94.35% of the companies in the same industry are more expensive than SCSC, based on the Price/Earnings ratio.
SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
The Price/Forward Earnings ratio is 8.19, which indicates a very decent valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 93.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.52 | ||
| EV/EBITDA | 7.23 |
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.
SCSC's earnings are expected to grow with 24.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.89
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% |
39.53
-0.49 (-1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.62%
Inst Owner Change-1.08%
Ins Owners1.97%
Ins Owner Change12.53%
Market Cap867.29M
Revenue(TTM)3.00B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (36.76%)
Short Float %1.99%
Short Ratio2.67
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)10.02%
Min EPS beat(2)8.3%
Max EPS beat(2)11.74%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-8.09%
Max EPS beat(4)11.74%
EPS beat(8)4
Avg EPS beat(8)-2.86%
EPS beat(12)6
Avg EPS beat(12)-3.26%
EPS beat(16)9
Avg EPS beat(16)1.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-7.9%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-8.36%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.78%
Revenue beat(12)3
Avg Revenue beat(12)-5.69%
Revenue beat(16)6
Avg Revenue beat(16)-3.32%
PT rev (1m)0%
PT rev (3m)-8.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)3.85%
EPS NY rev (3m)12.25%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.29 | ||
| P/FCF | 10.52 | ||
| P/OCF | 9.56 | ||
| P/B | 0.95 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)3.79
EY9.59%
EPS(NY)4.83
Fwd EY12.21%
FCF(TTM)3.76
FCFY9.5%
OCF(TTM)4.14
OCFY10.46%
SpS136.96
BVpS41.66
TBVpS28.46
PEG (NY)0.5
PEG (5Y)0.89
Graham Number59.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.15% | ||
| ROCE | 8.44% | ||
| ROIC | 6.46% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 10.3% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.48% | ||
| GM | 13.79% | ||
| FCFM | 2.74% |
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 Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 28.72% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.94% | ||
| Profit Quality | 110.71% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.91 |
F-Score7
WACC8.75%
ROIC/WACC0.74
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)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%-4.63%
Revenue Next Year5.12%
Revenue Next 2Y5.09%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.23%
EBIT Next 3Y18.83%
EBIT Next 5YN/A
FCF growth 1Y-13.87%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-14.57%
OCF growth 3YN/A
OCF growth 5Y-13.07%
SCANSOURCE INC / SCSC FAQ
Can you provide the ChartMill fundamental rating for SCANSOURCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SCSC.
Can you provide the valuation status for SCANSOURCE INC?
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.
How financially healthy is SCANSOURCE INC?
The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.
Can you provide the expected EPS growth for SCSC stock?
The Earnings per Share (EPS) of SCANSOURCE INC (SCSC) is expected to grow by 20.91% in the next year.