SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
37.72 USD
-0.81 (-2.1%)
37.72 USD
0 (0%)
Overall SCSC gets a fundamental rating of 6 out of 10. We evaluated SCSC against 123 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an excellent financial health rating, but there are some minor concerns on its 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.
SCSC had positive earnings in each 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 4.34%. This is in the better half of the industry: SCSC outperforms 68.29% of its industry peers.
SCSC's Return On Equity of 8.15% is fine compared to the rest of the industry. SCSC outperforms 69.92% of its industry peers.
SCSC has a better Return On Invested Capital (6.46%) than 66.67% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This is below the industry average of 9.10%.
| 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 58.54% of its industry peers.
SCSC's Profit Margin has declined in the last couple of years.
SCSC has a Operating Margin (3.12%) which is in line with its industry peers.
SCSC's Operating Margin has improved in the last couple of years.
SCSC's Gross Margin of 13.79% is on the low side compared to the rest of the industry. SCSC is outperformed by 73.98% of its industry peers.
SCSC's Gross Margin has improved in the last couple of years.
| 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.
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
An Altman-Z score of 3.87 indicates that SCSC is not in any danger for bankruptcy at the moment.
SCSC has a Altman-Z score of 3.87. This is in the better half of the industry: SCSC outperforms 65.04% of 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 is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
The Debt to Equity ratio of SCSC (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.72
WACC8.98%
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.
SCSC has a worse Quick ratio (1.32) than 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.18%, which is quite good.
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
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y16.43%
EPS Next 2Y16.13%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue Next Year5.64%
Revenue Next 2Y5.15%
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
With a Price/Earnings ratio of 9.95, the valuation of SCSC can be described as very reasonable.
Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.07. SCSC is valued rather cheaply when compared to this.
SCSC is valuated cheaply with a Price/Forward Earnings ratio of 7.83.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
SCSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.12% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 93.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 6.8 |
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 24.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.85
EPS Next 2Y16.13%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.72
-0.81 (-2.1%)
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-1.78%
Ins Owners2.8%
Ins Owner Change13.84%
Market Cap825.31M
Revenue(TTM)3.00B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (43.32%)
Short Float %1.83%
Short Ratio2.06
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)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)-8.62%
PT rev (3m)6%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)2%
EPS NY rev (1m)3.08%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 7.83 | ||
| P/S | 0.27 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.1 | ||
| P/B | 0.9 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)3.79
EY10.05%
EPS(NY)4.81
Fwd EY12.76%
FCF(TTM)3.77
FCFY9.99%
OCF(TTM)4.15
OCFY10.99%
SpS137.33
BVpS41.77
TBVpS28.54
PEG (NY)0.61
PEG (5Y)0.85
Graham Number59.69
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 | 3.87 |
F-Score7
WACC8.98%
ROIC/WACC0.72
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 Y16.43%
EPS Next 2Y16.13%
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 Year5.64%
Revenue Next 2Y5.15%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.47%
EBIT Next 3YN/A
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 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.
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 16.43% in the next year.