SCANSOURCE INC (SCSC) Fundamental Analysis & Valuation

NASDAQ:SCSC • US8060371072

Current stock price

40.66 USD
+0.23 (+0.57%)
At close:
40.66 USD
0 (0%)
After Hours:

This SCSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. SCSC Profitability Analysis

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.
  • The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple years.
SCSC Yearly Net Income VS EBIT VS OCF VS FCFSCSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • With a decent Return On Assets value of 4.24%, SCSC is doing good in the industry, outperforming 66.13% of the companies in the same industry.
  • SCSC's Return On Equity of 8.11% is fine compared to the rest of the industry. SCSC outperforms 64.52% of its industry peers.
  • SCSC has a better Return On Invested Capital (6.59%) than 67.74% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SCSC is in line with the industry average of 8.09%.
Industry RankSector 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%
SCSC Yearly ROA, ROE, ROICSCSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • SCSC has a Profit Margin (2.44%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of SCSC has declined.
  • Looking at the Operating Margin, with a value of 3.07%, SCSC is in line with its industry, outperforming 55.65% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SCSC has grown nicely.
  • With a Gross Margin value of 13.75%, SCSC is not doing good in the industry: 75.00% 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 RankSector 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%
SCSC Yearly Profit, Operating, Gross MarginsSCSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

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6

2. SCSC Health Analysis

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
  • Compared to 1 year ago, SCSC has an improved debt to assets ratio.
SCSC Yearly Shares OutstandingSCSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
SCSC Yearly Total Debt VS Total AssetsSCSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 3.81 indicates that SCSC is not in any danger for bankruptcy at the moment.
  • SCSC has a Altman-Z score (3.81) which is in line with 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 86.29% of the companies in the same industry.
  • SCSC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • SCSC has a Debt to Equity ratio (0.11) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.86
Altman-Z 3.81
ROIC/WACC0.67
WACC9.82%
SCSC Yearly LT Debt VS Equity VS FCFSCSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.96 indicates that SCSC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.96, SCSC is doing worse than 60.48% of the companies in the same industry.
  • 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 RankSector Rank
Current Ratio 1.96
Quick Ratio 1.22
SCSC Yearly Current Assets VS Current LiabilitesSCSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SCSC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.61% over the past year.
  • The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
  • SCSC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.07%.
  • SCSC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.
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 Y12.91%
EPS Next 2Y12.9%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year1.79%
Revenue Next 2Y2.89%
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.
SCSC Yearly Revenue VS EstimatesSCSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
SCSC Yearly EPS VS EstimatesSCSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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8

4. SCSC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.87, which indicates a very decent valuation of SCSC.
  • 94.35% of the companies in the same industry are more expensive than SCSC, based on the Price/Earnings ratio.
  • SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
  • A Price/Forward Earnings ratio of 8.94 indicates a reasonable valuation of SCSC.
  • Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.12. SCSC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.87
Fwd PE 8.94
SCSC Price Earnings VS Forward Price EarningsSCSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 95.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.31
EV/EBITDA 7.46
SCSC Per share dataSCSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

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)0.84
PEG (5Y)0.93
EPS Next 2Y12.9%
EPS Next 3Y22.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SCSC Dividend Analysis

5.1 Amount

  • No dividends for SCSC!.
Industry RankSector Rank
Dividend Yield 0%

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SCSC Fundamentals: All Metrics, Ratios and Statistics

SCANSOURCE INC

NASDAQ:SCSC (4/27/2026, 8:17:08 PM)

After market: 40.66 0 (0%)

40.66

+0.23 (+0.57%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners102.37%
Inst Owner Change1.62%
Ins Owners1.81%
Ins Owner Change-5.28%
Market Cap873.38M
Revenue(TTM)3.02B
Net Income(TTM)73.89M
Analysts80
Price Target52.7 (29.61%)
Short Float %4.16%
Short Ratio4.22
Dividend
Industry RankSector 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)-2.52%
PT rev (3m)-2.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-6.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.65%
Valuation
Industry RankSector Rank
PE 10.87
Fwd PE 8.94
P/S 0.29
P/FCF 7.31
P/OCF 6.84
P/B 0.96
P/tB 1.47
EV/EBITDA 7.46
EPS(TTM)3.74
EY9.2%
EPS(NY)4.55
Fwd EY11.19%
FCF(TTM)5.56
FCFY13.68%
OCF(TTM)5.95
OCFY14.63%
SpS140.78
BVpS42.41
TBVpS27.67
PEG (NY)0.84
PEG (5Y)0.93
Graham Number59.7368 (46.92%)
Profitability
Industry RankSector 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 RankSector 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 3.81
F-Score7
WACC9.82%
ROIC/WACC0.67
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 Y12.91%
EPS Next 2Y12.9%
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 Year1.79%
Revenue Next 2Y2.89%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y9%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year28.44%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SCANSOURCE INC?

ChartMill assigns a fundamental rating of 5 / 10 to SCSC.


What is the valuation status of SCANSOURCE INC (SCSC) stock?

ChartMill assigns a valuation rating of 8 / 10 to SCANSOURCE INC (SCSC). This can be considered as Undervalued.


Can you provide the profitability details for SCANSOURCE INC?

SCANSOURCE INC (SCSC) has a profitability rating of 5 / 10.


What is the earnings growth outlook for SCANSOURCE INC?

The Earnings per Share (EPS) of SCANSOURCE INC (SCSC) is expected to grow by 12.91% in the next year.