SCANSOURCE INC (SCSC) Fundamental Analysis & Valuation
NASDAQ:SCSC • US8060371072
36.08 USD
-0.11 (-0.3%)
At close: Mar 9, 2026
36.06 USD
-0.02 (-0.06%)
After Hours: 3/9/2026, 4:30:02 PM
This SCSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to SCSC. SCSC was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an average financial health and profitability rating. SCSC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SCSC could be worth investigating further for value investing!.
1. SCSC Profitability Analysis
1.1 Basic Checks
- SCSC had positive earnings in the past year.
- SCSC had a positive operating cash flow in the past year.
- In the past 5 years SCSC has always been profitable.
- In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SCSC has a better Return On Assets (4.24%) than 67.74% of its industry peers.
- The Return On Equity of SCSC (8.11%) is better than 65.32% of its industry peers.
- SCSC has a better Return On Invested Capital (6.59%) than 68.55% 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 8.67%.
| 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 60.48% of its industry peers.
- In the last couple of years the Profit Margin of SCSC has declined.
- SCSC has a Operating Margin (3.07%) which is in line with its industry peers.
- SCSC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 13.75%, SCSC is doing worse than 73.39% of the companies in the same industry.
- 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. SCSC Health Analysis
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.
- 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 3.74. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SCSC (3.74) is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of SCSC (0.86) is better than 84.68% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that SCSC is not too dependend on debt financing.
- SCSC's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. SCSC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.74 |
ROIC/WACC0.75
WACC8.82%
2.3 Liquidity
- A Current Ratio of 1.96 indicates that SCSC should not have too much problems paying its short term obligations.
- The Current ratio of SCSC (1.96) is worse than 61.29% of its industry peers.
- SCSC has a Quick Ratio of 1.22. 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 Quick ratio of 1.22 is on the low side compared to the rest of the industry. SCSC is outperformed by 65.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 |
3. SCSC Growth Analysis
3.1 Past
- SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.61%, which is quite good.
- 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%.
- 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)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
- Based on estimates for the next years, SCSC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.48% on average per year.
- SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y13.24%
EPS Next 2Y11.87%
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
- 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. SCSC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.65, 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.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, SCSC is valued rather cheaply.
- SCSC is valuated reasonably with a Price/Forward Earnings ratio of 8.08.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 93.55% of the companies listed in the same industry.
- SCSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.08 |
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 94.35% 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 95.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.49 | ||
| EV/EBITDA | 6.66 |
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.
- SCSC's earnings are expected to grow with 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)0.82
EPS Next 2Y11.87%
EPS Next 3Y22.48%
5. SCSC Dividend Analysis
5.1 Amount
- No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SCSC Fundamentals: All Metrics, Ratios and Statistics
36.08
-0.11 (-0.3%)
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 Owners102.31%
Inst Owner Change0.17%
Ins Owners1.92%
Ins Owner Change-5.13%
Market Cap775.00M
Revenue(TTM)3.02B
Net Income(TTM)73.89M
Analysts80
Price Target54.06 (49.83%)
Short Float %2.79%
Short Ratio2.64
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)-6.34%
EPS NY rev (3m)-6.34%
Revenue NQ rev (1m)-5.66%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-2.65%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.08 | ||
| P/S | 0.26 | ||
| P/FCF | 6.49 | ||
| P/OCF | 6.07 | ||
| P/B | 0.85 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 6.66 |
EPS(TTM)3.74
EY10.37%
EPS(NY)4.47
Fwd EY12.38%
FCF(TTM)5.56
FCFY15.41%
OCF(TTM)5.95
OCFY16.49%
SpS140.78
BVpS42.41
TBVpS27.67
PEG (NY)0.73
PEG (5Y)0.82
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
WACC8.82%
ROIC/WACC0.75
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 Y13.24%
EPS Next 2Y11.87%
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 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.
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.