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SCANSOURCE INC (SCSC) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SCSC - US8060371072 - Common Stock

40.71 USD
-0.74 (-1.79%)
Last: 1/23/2026, 8:00:02 PM
40.71 USD
0 (0%)
After Hours: 1/23/2026, 8:00:02 PM
Fundamental Rating

6

Overall SCSC gets a fundamental rating of 6 out of 10. We evaluated SCSC against 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. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! This makes SCSC very considerable for value investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • SCSC had positive earnings in the past year.
  • SCSC had a positive operating cash flow in the past year.
  • 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.
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 4.34%, SCSC is doing good in the industry, outperforming 69.35% of the companies in the same industry.
  • The Return On Equity of SCSC (8.15%) is better than 69.35% 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 67.74% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SCSC is in line with the industry average of 8.83%.
Industry RankSector 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%
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

  • The Profit Margin of SCSC (2.48%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of SCSC has declined.
  • Looking at the Operating Margin, with a value of 3.12%, SCSC is in line with its industry, outperforming 56.45% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SCSC has grown nicely.
  • The Gross Margin of SCSC (13.79%) is worse than 73.39% of its industry peers.
  • In the last couple of years the Gross Margin of SCSC has grown nicely.
Industry RankSector 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%
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

7

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
  • 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 3.94. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
  • SCSC has a Altman-Z score (3.94) which is in line with its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 1.62, SCSC belongs to the top of the industry, outperforming 80.65% 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 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 RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.62
Altman-Z 3.94
ROIC/WACC0.45
WACC14.25%
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 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 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.
  • SCSC's Quick ratio of 1.32 is on the low side compared to the rest of the industry. SCSC is outperformed by 62.10% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.32
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

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 19.18% 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.
  • Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -4.88% in the last 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

  • The Earnings Per Share is expected to grow by 24.78% on average over the next years. This is a very strong growth
  • SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

8

4. Valuation

4.1 Price/Earnings Ratio

  • SCSC is valuated reasonably with a Price/Earnings ratio of 10.74.
  • Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 93.55% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.21, SCSC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 8.43 indicates a reasonable valuation of SCSC.
  • Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SCSC is valued rather cheaply.
Industry RankSector Rank
PE 10.74
Fwd PE 8.43
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

  • SCSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.16% of the companies in the same industry.
  • 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 RankSector Rank
P/FCF 10.84
EV/EBITDA 7.48
SCSC Per share dataSCSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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.
  • A more expensive valuation may be justified as SCSC's earnings are expected to grow with 24.78% in the coming years.
PEG (NY)0.51
PEG (5Y)0.92
EPS Next 2Y16.28%
EPS Next 3Y24.78%

0

5. Dividend

5.1 Amount

  • No dividends for SCSC!.
Industry RankSector 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.