SCANSOURCE INC (SCSC) Fundamental Analysis & Valuation
NASDAQ:SCSC • US8060371072
Current stock price
39.37 USD
-0.18 (-0.46%)
At close:
39.37 USD
0 (0%)
After Hours:
This SCSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SCSC Profitability Analysis
1.1 Basic Checks
- In the past year SCSC was profitable.
- SCSC had a positive operating cash flow in the past year.
- 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 4.24% is fine compared to the rest of the industry. SCSC outperforms 66.94% of its industry peers.
- With a decent Return On Equity value of 8.11%, SCSC is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- SCSC has a Return On Invested Capital of 6.59%. This is in the better half of the industry: SCSC outperforms 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 8.09%.
| 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
- The Profit Margin of SCSC (2.44%) is comparable to the rest of the industry.
- SCSC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 3.07%, SCSC is in line with its industry, outperforming 55.65% 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 (13.75%) than 74.19% of its industry peers.
- SCSC's Gross Margin has improved in the last couple of years.
| 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
- 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.
- Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.79 indicates that SCSC is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 3.79, SCSC perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
- SCSC has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
- SCSC has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. SCSC outperforms 86.29% of its industry peers.
- SCSC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- SCSC has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.69
WACC9.62%
2.3 Liquidity
- SCSC has a Current Ratio of 1.96. This is a normal value and indicates that SCSC is financially healthy and should not expect problems in meeting its short term obligations.
- SCSC has a Current ratio (1.96) which is comparable to the rest of the industry.
- A Quick Ratio of 1.22 indicates that SCSC should not have too much problems paying its short term obligations.
- SCSC has a Quick ratio of 1.22. This is in the lower half of the industry: SCSC underperforms 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.
- 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 small growth in Revenue. The Revenue has grown by 0.07% 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)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.
- 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 Y12.91%
EPS Next 2Y12.9%
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
- 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. SCSC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.53, the valuation of SCSC can be described as reasonable.
- SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 94.35% 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 27.95.
- Based on the Price/Forward Earnings ratio of 8.65, the valuation of SCSC can be described as reasonable.
- 94.35% of the companies in the same industry are more expensive than SCSC, based on the Price/Forward Earnings ratio.
- SCSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 94.35% of the companies are valued more expensively.
- SCSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 7.23 |
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)0.82
PEG (5Y)0.9
EPS Next 2Y12.9%
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
39.37
-0.18 (-0.46%)
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)05-12 2026-05-12
Inst Owners102.37%
Inst Owner Change1.71%
Ins Owners1.81%
Ins Owner Change-5.28%
Market Cap845.67M
Revenue(TTM)3.02B
Net Income(TTM)73.89M
Analysts80
Price Target52.7 (33.86%)
Short Float %4.35%
Short Ratio3.91
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)-2.52%
PT rev (3m)-2.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-6.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.28 | ||
| P/FCF | 7.08 | ||
| P/OCF | 6.62 | ||
| P/B | 0.93 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)3.74
EY9.5%
EPS(NY)4.55
Fwd EY11.56%
FCF(TTM)5.56
FCFY14.13%
OCF(TTM)5.95
OCFY15.11%
SpS140.78
BVpS42.41
TBVpS27.67
PEG (NY)0.82
PEG (5Y)0.9
Graham Number59.7368 (51.73%)
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 | 3.79 |
F-Score7
WACC9.62%
ROIC/WACC0.69
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 Y12.91%
EPS Next 2Y12.9%
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 Fundamental Analysis 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.
Can you provide the profitability details for SCANSOURCE INC?
SCANSOURCE INC (SCSC) has a profitability rating of 5 / 10.
What is the earnings growth outlook for SCANSOURCE INC?
The Earnings per Share (EPS) of SCANSOURCE INC (SCSC) is expected to grow by 12.91% in the next year.