SCANSOURCE INC (SCSC)
US8060371072 - Common Stock
We assign a fundamental rating of 5 out of 10 to SCSC. SCSC was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While SCSC has a great health rating, its profitability is only average at the moment. SCSC is not valued too expensively and it also shows a decent growth rate.
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.
SCSC had positive earnings in 4 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 4.40%. This is in the better half of the industry: SCSC outperforms 71.54% of its industry peers.
SCSC has a Return On Equity of 8.54%. This is in the better half of the industry: SCSC outperforms 71.54% of its industry peers.
SCSC's Return On Invested Capital of 6.22% is fine compared to the rest of the industry. SCSC outperforms 68.29% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 7.48%. This is in line with the industry average of 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROIC | 6.22% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
1.3 Margins
SCSC has a better Profit Margin (2.49%) than 60.98% of its industry peers.
SCSC's Profit Margin has improved in the last couple of years.
SCSC's Operating Margin of 2.95% is in line compared to the rest of the industry. SCSC outperforms 56.91% of its industry peers.
SCSC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 12.48%, SCSC is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SCSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% |
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
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.
Compared to 5 years ago, SCSC has less shares outstanding
Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
SCSC has an Altman-Z score of 4.02. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC's Altman-Z score of 4.02 is fine compared to the rest of the industry. SCSC outperforms 65.04% of its industry peers.
The Debt to FCF ratio of SCSC is 0.46, which is an excellent value as it means it would take SCSC, only 0.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCSC (0.46) is better than 83.74% of its industry peers.
SCSC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
SCSC has a Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 4.02 |
ROIC/WACC0.64
WACC9.72%
2.3 Liquidity
SCSC has a Current Ratio of 2.03. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
SCSC has a worse Current ratio (2.03) than 63.41% of its industry peers.
A Quick Ratio of 1.27 indicates that SCSC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, SCSC is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
SCSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.66%.
SCSC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.73% yearly.
The Revenue for SCSC has decreased by -15.08% in the past year. This is quite bad
Measured over the past years, SCSC shows a small growth in Revenue. The Revenue has been growing by 0.06% on average per year.
EPS 1Y (TTM)-9.66%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%13.51%
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-11.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.24% on average over the next years. This is quite good.
SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y11.94%
EPS Next 2Y11.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.92%
Revenue Next 2Y1%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 15.45, the valuation of SCSC can be described as correct.
84.55% of the companies in the same industry are more expensive than SCSC, based on the Price/Earnings ratio.
SCSC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
SCSC is valuated correctly with a Price/Forward Earnings ratio of 12.89.
SCSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 85.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (23.56), we can say SCSC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
84.55% 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 98.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.72 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
SCSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y11.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SCANSOURCE INC
NASDAQ:SCSC (11/20/2024, 8:00:02 PM)
Premarket: 49.5 +0.36 (+0.73%)49.14
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 12.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.66%
EPS 3Y3.98%
EPS 5Y
EPS Q2Q%
EPS Next Y11.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y