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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SCSC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, SCSC could be worth investigating further for value investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

SCSC's Return On Assets of 4.34% is fine compared to the rest of the industry. SCSC outperforms 69.11% of its industry peers.
SCSC has a better Return On Equity (8.15%) than 67.48% of its industry peers.
SCSC has a better Return On Invested Capital (6.46%) than 65.85% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This 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 has a better Profit Margin (2.48%) than 60.98% of its industry peers.
SCSC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.12%, SCSC perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Operating Margin of SCSC has grown nicely.
Looking at the Gross Margin, with a value of 13.79%, SCSC is doing worse than 73.17% of the companies in the same industry.
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

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
SCSC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SCSC has been reduced compared to a year ago.

2.2 Solvency

SCSC has an Altman-Z score of 3.96. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a better Altman-Z score (3.96) than 64.23% 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.
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 comparable to the rest of the industry.

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

ROIC/WACC0.78

WACC8.28%

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's Quick ratio of 1.32 is on the low side compared to the rest of the industry. SCSC is outperformed by 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

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.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
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

SCSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.78% yearly.
The Revenue is expected to grow by 5.71% on average over the next years.

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

A Price/Earnings ratio of 11.34 indicates a reasonable valuation of SCSC.
SCSC's Price/Earnings 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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
A Price/Forward Earnings ratio of 8.91 indicates a reasonable valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 95.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SCSC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.34
Fwd PE	8.91

4.2 Price Multiples

93.50% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
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	11.44
EV/EBITDA	7.76

4.3 Compensation for Growth

SCSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SCSC's earnings are expected to grow with 24.78% in the coming years.