SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC - Nasdaq - US8060371072 - Common Stock - Currency: USD
Overall SCSC gets a fundamental rating of 5 out of 10. We evaluated SCSC against 124 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an excellent financial health rating, but there are some minor concerns on its profitability. SCSC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make SCSC a good candidate 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.
Of the past 5 years SCSC 4 years were 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 4.40%, SCSC is doing good in the industry, outperforming 69.17% of the companies in the same industry.
SCSC has a Return On Equity of 8.54%. This is in the better half of the industry: SCSC outperforms 70.00% of its industry peers.
The Return On Invested Capital of SCSC (6.22%) is better than 66.67% 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 8.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROIC | 6.22% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
1.3 Margins
Looking at the Profit Margin, with a value of 2.49%, SCSC is in line with its industry, outperforming 57.50% of the companies in the same industry.
In the last couple of years the Profit Margin of SCSC has grown nicely.
With a Operating Margin value of 2.95%, SCSC perfoms like the industry average, outperforming 55.83% of the companies in the same industry.
SCSC's Operating Margin has been stable in the last couple of years.
SCSC has a worse Gross Margin (12.48%) than 73.33% of its industry peers.
In the last couple of years the Gross Margin of SCSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% |
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
SCSC has less shares outstanding than it did 1 year ago.
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 4.03 indicates that SCSC is not in any danger for bankruptcy at the moment.
SCSC's Altman-Z score of 4.03 is fine compared to the rest of the industry. SCSC outperforms 65.00% of its industry peers.
SCSC has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
SCSC has a Debt to FCF ratio of 0.46. This is amongst the best in the industry. SCSC outperforms 83.33% of its industry peers.
SCSC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.15, SCSC perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.62
WACC10%
2.3 Liquidity
A Current Ratio of 2.03 indicates that SCSC has no problem at all paying its short term obligations.
SCSC's Current ratio of 2.03 is on the low side compared to the rest of the industry. SCSC is outperformed by 60.83% of its industry peers.
A Quick Ratio of 1.27 indicates that SCSC should not have too much problems paying its short term obligations.
SCSC has a Quick ratio of 1.27. This is in the lower half of the industry: SCSC underperforms 69.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
SCSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.66%.
SCSC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.73% yearly.
SCSC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.08%.
The Revenue has been growing slightly by 0.06% on average over the past years.
EPS 1Y (TTM)-9.66%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%13.51%
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-11.49%
3.2 Future
SCSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.26% yearly.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y18.01%
EPS Next 2Y13.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.34%
Revenue Next 2Y1.22%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.39, SCSC is valued correctly.
SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 88.33% of the companies in the same industry.
SCSC is valuated cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.78, the valuation of SCSC can be described as reasonable.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 88.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 82.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 97.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.23 | ||
| EV/EBITDA | 9.78 |
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.
A more expensive valuation may be justified as SCSC's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y13.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SCANSOURCE INC
NASDAQ:SCSC (1/30/2025, 5:27:02 PM)
After market: 42.59 0 (0%)42.59
-7.4 (-14.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.56%
Inst Owner Change-3.73%
Ins Owners2.16%
Ins Owner Change14.06%
Market Cap1.01B
Analysts45.71
Price Target58.14 (36.51%)
Short Float %7.96%
Short Ratio7.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-5.19%
Min EPS beat(2)-15.97%
Max EPS beat(2)5.58%
EPS beat(4)1
Avg EPS beat(4)-10.91%
Min EPS beat(4)-19.15%
Max EPS beat(4)5.58%
EPS beat(8)3
Avg EPS beat(8)-7.49%
EPS beat(12)6
Avg EPS beat(12)0.14%
EPS beat(16)10
Avg EPS beat(16)9.56%
Revenue beat(2)0
Avg Revenue beat(2)-9.09%
Min Revenue beat(2)-13.24%
Max Revenue beat(2)-4.95%
Revenue beat(4)0
Avg Revenue beat(4)-9.19%
Min Revenue beat(4)-13.24%
Max Revenue beat(4)-4.95%
Revenue beat(8)2
Avg Revenue beat(8)-4.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.64%
Revenue beat(16)8
Avg Revenue beat(16)0.04%
PT rev (1m)0%
PT rev (3m)9.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.32 | ||
| P/FCF | 3.23 | ||
| P/OCF | 3.14 | ||
| P/B | 1.1 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)3.18
EY7.47%
EPS(NY)3.95
Fwd EY9.28%
FCF(TTM)13.2
FCFY30.99%
OCF(TTM)13.56
OCFY31.84%
SpS132.62
BVpS38.66
TBVpS25.62
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROCE | 8.33% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 10.49% | ||
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% | ||
| FCFM | 9.95% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
ROICexc(3y)8.08%
ROICexc(5y)6.93%
ROICexgc(3y)10.86%
ROICexgc(5y)9.8%
ROCE(3y)10.01%
ROCE(5y)8.65%
ROICexcg growth 3Y2.78%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y8.23%
ROICexc growth 5Y7.82%
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
F-Score7
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 30.52% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 265.66% | ||
| Profit Quality | 399.92% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 4.03 |
F-Score7
WACC10%
ROIC/WACC0.62
Cap/Depr(3y)29.42%
Cap/Depr(5y)22.71%
Cap/Sales(3y)0.24%
Cap/Sales(5y)0.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.66%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%13.51%
EPS Next Y18.01%
EPS Next 2Y13.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-11.49%
Revenue Next Year-2.34%
Revenue Next 2Y1.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.42%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year21.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y354.74%
FCF growth 3Y37.89%
FCF growth 5YN/A
OCF growth 1Y378.67%
OCF growth 3Y38.17%
OCF growth 5YN/A