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. While SCSC has a great health rating, its profitability is only average at the moment. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! This makes SCSC very considerable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SCSC had positive earnings in the past year.
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

With a decent Return On Assets value of 4.34%, SCSC is doing good in the industry, outperforming 69.11% of the companies in the same industry.
With a decent Return On Equity value of 8.15%, SCSC is doing good in the industry, outperforming 67.48% of the companies in the same industry.
The Return On Invested Capital of SCSC (6.46%) is better than 65.85% 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 8.85%.

		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 fine compared to the rest of the industry. SCSC outperforms 60.98% of its industry peers.
In the last couple of years the Profit Margin of SCSC has declined.
With a Operating Margin value of 3.12%, SCSC perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
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 73.17% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCSC is destroying value.
Compared to 1 year ago, SCSC has less shares outstanding
SCSC has less shares outstanding than it did 5 years ago.
SCSC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.96 indicates that SCSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, SCSC is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
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.
SCSC has a Debt to FCF ratio of 1.62. This is amongst the best in the industry. SCSC outperforms 81.30% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
SCSC has a Debt to Equity ratio (0.14) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.62
Altman-Z	3.96

ROIC/WACC0.45

WACC14.34%

2.3 Liquidity

A Current Ratio of 2.16 indicates that SCSC has no problem at all paying its short term obligations.
The Current ratio of SCSC (2.16) 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 has a Quick ratio of 1.32. This is in the lower half of the industry: SCSC underperforms 62.60% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.16
Quick Ratio	1.32

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.18% 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.
Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -4.88% in the last year.
SCSC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.

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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.34, the valuation of SCSC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 93.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.32, SCSC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.91, which indicates a very decent valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 95.12% of the companies in the same industry.
SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	11.34
Fwd PE	8.91

4.2 Price Multiples

SCSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.50% 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 93.50% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	11.44
EV/EBITDA	7.76

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.