SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
40.6 USD
-0.59 (-1.43%)
40.6 USD
0 (0%)
Taking everything into account, SCSC scores 5 out of 10 in our fundamental rating. SCSC was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has only an average score on both its financial health and profitability. SCSC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make SCSC suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SCSC was profitable.
SCSC had a positive operating cash flow in the past year.
SCSC had positive earnings in each of the past 5 years.
In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
SCSC's Return On Assets of 4.01% is fine compared to the rest of the industry. SCSC outperforms 66.13% of its industry peers.
SCSC has a Return On Equity of 7.89%. This is in the better half of the industry: SCSC outperforms 67.74% of its industry peers.
The Return On Invested Capital of SCSC (6.28%) is better than 65.32% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This is below the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROIC | 6.28% |
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 has a Profit Margin (2.35%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SCSC has declined.
With a Operating Margin value of 2.98%, SCSC perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
SCSC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.44%, SCSC is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SCSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% |
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.
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 3.75 indicates that SCSC is not in any danger for bankruptcy at the moment.
SCSC has a Altman-Z score of 3.75. This is comparable to the rest of the industry: SCSC outperforms 58.06% of its industry peers.
SCSC has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
SCSC's Debt to FCF ratio of 1.31 is fine compared to the rest of the industry. SCSC outperforms 79.03% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.14, SCSC perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.7
WACC9.01%
2.3 Liquidity
A Current Ratio of 2.01 indicates that SCSC has no problem at all paying its short term obligations.
SCSC's Current ratio of 2.01 is in line compared to the rest of the industry. SCSC outperforms 41.13% of its industry peers.
A Quick Ratio of 1.30 indicates that SCSC should not have too much problems paying its short term obligations.
SCSC has a Quick ratio of 1.30. This is in the lower half of the industry: SCSC underperforms 63.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.18% over the past year.
SCSC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -6.72% 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)19.18%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%26.19%
Revenue 1Y (TTM)-6.72%
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.
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
Based on the Price/Earnings ratio of 10.71, 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/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. SCSC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of SCSC can be described as reasonable.
SCSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 95.16% of the companies 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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
95.16% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.54 | ||
| EV/EBITDA | 7.54 |
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)0.91
EPS Next 2Y16.13%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.6
-0.59 (-1.43%)
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-1.06%
Ins Owners2.8%
Ins Owner Change12.93%
Market Cap888.33M
Revenue(TTM)3.04B
Net Income(TTM)71.55M
Analysts80
Price Target54.06 (33.15%)
Short Float %1.84%
Short Ratio1.62
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)8.55%
Min EPS beat(2)8.3%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)3.65%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.79%
EPS beat(8)3
Avg EPS beat(8)-6.79%
EPS beat(12)6
Avg EPS beat(12)-4.22%
EPS beat(16)9
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-7.62%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.63%
Revenue beat(12)4
Avg Revenue beat(12)-4.9%
Revenue beat(16)7
Avg Revenue beat(16)-2.61%
PT rev (1m)-8.62%
PT rev (3m)6%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)3.08%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 8.43 | ||
| P/S | 0.29 | ||
| P/FCF | 8.54 | ||
| P/OCF | 7.91 | ||
| P/B | 0.98 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)3.79
EY9.33%
EPS(NY)4.81
Fwd EY11.86%
FCF(TTM)4.76
FCFY11.71%
OCF(TTM)5.13
OCFY12.65%
SpS138.98
BVpS41.43
TBVpS28
PEG (NY)0.65
PEG (5Y)0.91
Graham Number59.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 10.15% | ||
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% | ||
| FCFM | 3.42% |
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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 11.97 | ||
| Cash Conversion | 93.02% | ||
| Profit Quality | 145.45% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.75 |
F-Score6
WACC9.01%
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)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)-6.72%
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 1Y-4.35%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.34%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-69.77%
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.
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 6 / 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.