SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC • US8060371072
36.87 USD
+0.68 (+1.88%)
At close: Feb 25, 2026
36.87 USD
0 (0%)
After Hours: 2/25/2026, 8:00:02 PM
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. Both the profitability and the financial health of SCSC get a neutral evaluation. Nothing too spectacular is happening here. SCSC scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
- Each year in the past 5 years SCSC has been profitable.
- In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of SCSC (4.24%) is better than 69.35% of its industry peers.
- The Return On Equity of SCSC (8.11%) is better than 66.94% of its industry peers.
- With a decent Return On Invested Capital value of 6.59%, SCSC is doing good in the industry, outperforming 67.74% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SCSC is in line with the industry average of 8.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.11% | ||
| ROIC | 6.59% |
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 2.44% is fine compared to the rest of the industry. SCSC outperforms 61.29% of its industry peers.
- SCSC's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 3.07%, SCSC perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
- SCSC's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 13.75%, SCSC is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of SCSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.07% | ||
| PM (TTM) | 2.44% | ||
| GM | 13.75% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
- SCSC has an Altman-Z score of 3.74. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
- SCSC's Altman-Z score of 3.74 is fine compared to the rest of the industry. SCSC outperforms 66.13% of its industry peers.
- The Debt to FCF ratio of SCSC is 0.86, which is an excellent value as it means it would take SCSC, only 0.86 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.86, SCSC belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
- A Debt/Equity ratio of 0.11 indicates that SCSC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.11, SCSC is in line with its industry, outperforming 50.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.74 |
ROIC/WACC0.73
WACC9%
2.3 Liquidity
- SCSC has a Current Ratio of 1.96. This is a normal value and indicates that SCSC is financially healthy and should not expect problems in meeting its short term obligations.
- SCSC's Current ratio of 1.96 is on the low side compared to the rest of the industry. SCSC is outperformed by 62.10% of its industry peers.
- A Quick Ratio of 1.22 indicates that SCSC should not have too much problems paying its short term obligations.
- SCSC has a Quick ratio of 1.22. This is in the lower half of the industry: SCSC underperforms 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.61% 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 been growing slightly by 0.07% in the past year.
- The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
3.2 Future
- SCSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.48% yearly.
- SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y3.57%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 9.86, which indicates a very decent valuation of SCSC.
- Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 92.74% of the companies are valued more expensively.
- SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.05.
- A Price/Forward Earnings ratio of 7.64 indicates a rather cheap valuation of SCSC.
- Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 94.35% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 7.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 96.77% 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 94.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.63 | ||
| EV/EBITDA | 6.66 |
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.
- SCSC's earnings are expected to grow with 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.84
EPS Next 2Y16.28%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
36.87
+0.68 (+1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners102.36%
Inst Owner Change-0.18%
Ins Owners1.86%
Ins Owner Change8.74%
Market Cap791.97M
Revenue(TTM)3.02B
Net Income(TTM)73.89M
Analysts80
Price Target54.06 (46.62%)
Short Float %3.31%
Short Ratio3.2
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)1
Avg EPS beat(2)-5.31%
Min EPS beat(2)-22.36%
Max EPS beat(2)11.74%
EPS beat(4)3
Avg EPS beat(4)1.62%
Min EPS beat(4)-22.36%
Max EPS beat(4)11.74%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)5
Avg EPS beat(12)-5.15%
EPS beat(16)8
Avg EPS beat(16)-1.07%
Revenue beat(2)0
Avg Revenue beat(2)-5.74%
Min Revenue beat(2)-7.9%
Max Revenue beat(2)-3.58%
Revenue beat(4)1
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.19%
Revenue beat(12)2
Avg Revenue beat(12)-6.54%
Revenue beat(16)6
Avg Revenue beat(16)-3.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-6.11%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)-4.92%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 7.64 | ||
| P/S | 0.26 | ||
| P/FCF | 6.63 | ||
| P/OCF | 6.2 | ||
| P/B | 0.87 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 6.66 |
EPS(TTM)3.74
EY10.14%
EPS(NY)4.83
Fwd EY13.09%
FCF(TTM)5.56
FCFY15.08%
OCF(TTM)5.95
OCFY16.13%
SpS140.78
BVpS42.41
TBVpS27.67
PEG (NY)0.47
PEG (5Y)0.84
Graham Number59.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.11% | ||
| ROCE | 8.62% | ||
| ROIC | 6.59% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 10.49% | ||
| OM | 3.07% | ||
| PM (TTM) | 2.44% | ||
| GM | 13.75% | ||
| FCFM | 3.95% |
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 Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 31.08% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.8% | ||
| Profit Quality | 161.66% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.74 |
F-Score7
WACC9%
ROIC/WACC0.73
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)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)0.07%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year2.61%
Revenue Next 2Y3.57%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y9%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year37.15%
EBIT Next 3Y18.83%
EBIT Next 5YN/A
FCF growth 1Y-35.67%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-34.9%
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.
What is the valuation status of SCANSOURCE INC (SCSC) stock?
ChartMill assigns a valuation rating of 9 / 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 6 / 10.