40.2 USD
+0.69 (+1.75%)
40.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SCSC. SCSC was compared to 123 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SCSC. This makes SCSC very considerable for value investing!
1. Profitability
1.1 Basic Checks
SCSC had positive earnings in the past year.
SCSC had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of SCSC (4.34%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 8.15%, SCSC is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.46%, SCSC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCSC is below the industry average of 9.11%.
| 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's Profit Margin of 2.48% is in line compared to the rest of the industry. SCSC outperforms 56.91% of its industry peers.
SCSC's Profit Margin has declined in the last couple of years.
SCSC has a Operating Margin (3.12%) which is in line with its industry peers.
SCSC's Operating Margin has improved in the last couple of years.
SCSC's Gross Margin of 13.79% is on the low side compared to the rest of the industry. SCSC is outperformed by 73.98% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
Compared to 1 year ago, SCSC has less shares outstanding
The number of shares outstanding for SCSC has been reduced compared to 5 years ago.
Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
SCSC has an Altman-Z score of 3.90. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, SCSC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.62, SCSC is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
SCSC has a Debt to Equity ratio of 0.14. This is comparable 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 | 3.9 |
ROIC/WACC0.71
WACC9.08%
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.
A Quick Ratio of 1.32 indicates that SCSC should not have too much problems paying its short term obligations.
The Quick ratio of SCSC (1.32) is worse than 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
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.
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.
The Revenue has decreased by -4.88% in the past year.
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)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
Based on estimates for the next years, SCSC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.78% on average per year.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y16.43%
EPS Next 2Y16.13%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue Next Year5.64%
Revenue Next 2Y5.15%
Revenue Next 3Y5.71%
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. Valuation
4.1 Price/Earnings Ratio
SCSC is valuated reasonably with a Price/Earnings ratio of 10.61.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 92.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (25.65), we can say SCSC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.35, the valuation of SCSC can be described as reasonable.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 94.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 95.12% of the companies in the same industry.
SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 7.12 |
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.
PEG (NY)0.65
PEG (5Y)0.9
EPS Next 2Y16.13%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.2
+0.69 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.36%
Inst Owner Change-1.08%
Ins Owners2.8%
Ins Owner Change14.07%
Market Cap879.58M
Revenue(TTM)3.00B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (34.48%)
Short Float %1.83%
Short Ratio2.06
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)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)-8.62%
PT rev (3m)-1.85%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.29 | ||
| P/FCF | 10.67 | ||
| P/OCF | 9.69 | ||
| P/B | 0.96 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)3.79
EY9.43%
EPS(NY)4.81
Fwd EY11.98%
FCF(TTM)3.77
FCFY9.37%
OCF(TTM)4.15
OCFY10.32%
SpS137.33
BVpS41.77
TBVpS28.54
PEG (NY)0.65
PEG (5Y)0.9
Graham Number59.69
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 | 3.9 |
F-Score7
WACC9.08%
ROIC/WACC0.71
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)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
EPS Next Y16.43%
EPS Next 2Y16.13%
EPS Next 3Y24.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%-4.63%
Revenue Next Year5.64%
Revenue Next 2Y5.15%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.47%
EBIT Next 3YN/A
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.
Can you provide the valuation status for SCANSOURCE INC?
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.
How financially healthy is SCANSOURCE INC?
The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.
Can you provide the expected EPS growth for SCSC stock?
The Earnings per Share (EPS) of SCANSOURCE INC (SCSC) is expected to grow by 16.43% in the next year.