SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC • US8060371072
35.72 USD
+1.06 (+3.06%)
At close: Feb 13, 2026
35.72 USD
0 (0%)
After Hours: 2/13/2026, 8:00:01 PM
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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes SCSC very considerable for value investing!
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.
- SCSC had positive earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple 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 66.67% of its industry peers.
- SCSC has a better Return On Invested Capital (6.46%) than 65.04% 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 8.97%.
| 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
- The Profit Margin of SCSC (2.48%) is better than 61.79% of its industry peers.
- SCSC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 3.12%, SCSC is in line with its industry, outperforming 55.28% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCSC has grown nicely.
- SCSC has a worse Gross Margin (13.79%) than 72.36% 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
- 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.
- The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
- SCSC has an Altman-Z score of 3.83. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
- SCSC's Altman-Z score of 3.83 is fine compared to the rest of the industry. SCSC outperforms 63.41% of its industry peers.
- The Debt to FCF ratio of SCSC is 1.62, which is an excellent value as it means it would take SCSC, only 1.62 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of SCSC (1.62) is better than 81.30% of its industry peers.
- SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- SCSC's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. SCSC outperforms 50.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.7
WACC9.2%
2.3 Liquidity
- A Current Ratio of 2.16 indicates that SCSC has no problem at all paying its short term obligations.
- With a Current ratio value of 2.16, SCSC perfoms like the industry average, outperforming 43.09% of the companies in the same industry.
- 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.
- With a Quick ratio value of 1.32, SCSC is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.61% 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 -6.72% in the last year.
- The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)-6.72%
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.
- Based on estimates for the next years, SCSC will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.55, the valuation of SCSC can be described as reasonable.
- Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.68. SCSC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 7.40 indicates a rather cheap valuation of SCSC.
- SCSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.94% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. SCSC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 7.4 |
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 96.75% of the companies listed in the same industry.
- SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.31 | ||
| EV/EBITDA | 6.33 |
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)0.46
PEG (5Y)0.81
EPS Next 2Y16.28%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
35.72
+1.06 (+3.06%)
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 Owners102.36%
Inst Owner Change0.49%
Ins Owners1.86%
Ins Owner Change13.14%
Market Cap767.27M
Revenue(TTM)3.04B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (51.34%)
Short Float %2.72%
Short Ratio3.2
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)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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.26 | ||
| P/FCF | 9.31 | ||
| P/OCF | 8.46 | ||
| P/B | 0.84 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 6.33 |
EPS(TTM)3.74
EY10.47%
EPS(NY)4.83
Fwd EY13.51%
FCF(TTM)3.84
FCFY10.74%
OCF(TTM)4.22
OCFY11.83%
SpS139.89
BVpS42.55
TBVpS29.07
PEG (NY)0.46
PEG (5Y)0.81
Graham Number59.84
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 | 3.83 |
F-Score7
WACC9.2%
ROIC/WACC0.7
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 Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year37.15%
EBIT Next 3Y18.83%
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.
What is the valuation status of SCANSOURCE INC (SCSC) stock?
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.
Can you provide the financial health for SCSC stock?
The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.