SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
42.34 USD
-0.61 (-1.42%)
42.34 USD
0 (0%)
Overall SCSC gets a fundamental rating of 5 out of 10. We evaluated SCSC against 123 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has only an average score on both its financial health and profitability. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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.
1.2 Ratios
SCSC's Return On Assets of 4.01% is fine compared to the rest of the industry. SCSC outperforms 66.67% of its industry peers.
SCSC has a Return On Equity of 7.89%. This is in the better half of the industry: SCSC outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 6.28%, SCSC is doing good in the industry, outperforming 65.85% 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 below the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROIC | 6.28% |
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 2.35% is in line compared to the rest of the industry. SCSC outperforms 58.54% of its industry peers.
In the last couple of years the Profit Margin of SCSC has declined.
The Operating Margin of SCSC (2.98%) is comparable to the rest of the industry.
SCSC's Operating Margin has improved in the last couple of years.
SCSC has a worse Gross Margin (13.44%) than 73.98% of its industry peers.
SCSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% |
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.
Compared to 1 year ago, SCSC has less shares outstanding
Compared to 5 years ago, SCSC has less shares outstanding
SCSC has a better debt/assets ratio than last year.
2.2 Solvency
SCSC has an Altman-Z score of 3.77. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a Altman-Z score (3.77) which is comparable to the rest of the industry.
The Debt to FCF ratio of SCSC is 1.31, which is an excellent value as it means it would take SCSC, only 1.31 years of fcf income to pay off all of its debts.
SCSC has a better Debt to FCF ratio (1.31) than 78.86% of its industry peers.
SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, SCSC is in line with its industry, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.7
WACC8.96%
2.3 Liquidity
A Current Ratio of 2.01 indicates that SCSC has no problem at all paying its short term obligations.
The Current ratio of SCSC (2.01) is comparable to the rest of the industry.
SCSC has a Quick Ratio of 1.30. 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 Quick ratio, with a value of 1.30, SCSC is doing worse than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.91%, which is quite good.
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 -6.72% in the past year.
The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
3.2 Future
SCSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.59% yearly.
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y12.95%
EPS Next 2Y12.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.84%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 11.86 indicates a reasonable valuation of SCSC.
SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.12% of the companies in the same industry.
SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.57.
SCSC is valuated reasonably with a Price/Forward Earnings ratio of 10.50.
SCSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.12% of the companies in the same industry.
SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 7.86 |
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 12.59% in the coming years.
PEG (NY)0.92
PEG (5Y)1.01
EPS Next 2Y12.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.34
-0.61 (-1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.36%
Inst Owner Change-0.71%
Ins Owners2.8%
Ins Owner Change12.93%
Market Cap926.40M
Revenue(TTM)3.04B
Net Income(TTM)71.55M
Analysts82.5
Price Target59.16 (39.73%)
Short Float %2.41%
Short Ratio1.84
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)2
Avg EPS beat(2)8.55%
Min EPS beat(2)8.3%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)3.65%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.79%
EPS beat(8)3
Avg EPS beat(8)-6.79%
EPS beat(12)6
Avg EPS beat(12)-4.22%
EPS beat(16)9
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-7.62%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.63%
Revenue beat(12)4
Avg Revenue beat(12)-4.9%
Revenue beat(16)7
Avg Revenue beat(16)-2.61%
PT rev (1m)0%
PT rev (3m)16%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)4.86%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.3 | ||
| P/FCF | 8.9 | ||
| P/OCF | 8.25 | ||
| P/B | 1.02 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)3.57
EY8.43%
EPS(NY)4.03
Fwd EY9.52%
FCF(TTM)4.76
FCFY11.23%
OCF(TTM)5.13
OCFY12.13%
SpS138.98
BVpS41.43
TBVpS28
PEG (NY)0.92
PEG (5Y)1.01
Graham Number57.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 10.15% | ||
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% | ||
| FCFM | 3.42% |
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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 11.97 | ||
| Cash Conversion | 93.02% | ||
| Profit Quality | 145.45% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.77 |
F-Score6
WACC8.96%
ROIC/WACC0.7
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)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
EPS Next Y12.95%
EPS Next 2Y12.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
Revenue Next Year5.84%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.35%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.34%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-69.77%
OCF growth 3YN/A
OCF growth 5Y-13.07%