SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
37.72 USD
-0.81 (-2.1%)
37.72 USD
0 (0%)
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 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.
In the past year SCSC had a positive cash flow from operations.
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
The Return On Assets of SCSC (4.34%) is better than 68.29% of its industry peers.
SCSC has a better Return On Equity (8.15%) than 69.92% of its industry peers.
SCSC has a Return On Invested Capital of 6.46%. This is in the better half of the industry: SCSC outperforms 66.67% 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 9.10%.
| 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 comparable to the rest of the industry.
SCSC's Profit Margin has declined in the last couple of years.
SCSC has a Operating Margin (3.12%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCSC has grown nicely.
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
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
SCSC has an Altman-Z score of 3.87. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a better Altman-Z score (3.87) than 65.04% 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.
SCSC has a better Debt to FCF ratio (1.62) than 79.67% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
SCSC's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. SCSC outperforms 51.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.72
WACC8.98%
2.3 Liquidity
SCSC has a Current Ratio of 2.16. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
SCSC has a Current ratio (2.16) which is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that SCSC should not have too much problems paying its short term obligations.
SCSC's Quick ratio of 1.32 is on the low side compared to the rest of the industry. SCSC is outperformed by 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.
SCSC shows a decrease in Revenue. In the last year, the revenue decreased by -4.88%.
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
SCSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.78% yearly.
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
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
The Price/Earnings ratio is 9.95, which indicates a very decent valuation of SCSC.
Compared to the rest of the industry, the Price/Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 93.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, SCSC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.83 indicates a rather cheap valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SCSC to the average of the S&P500 Index (34.08), we can say SCSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 95.12% 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 93.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 6.8 |
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 24.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.85
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 |
37.72
-0.81 (-2.1%)
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-1.78%
Ins Owners2.8%
Ins Owner Change13.84%
Market Cap825.31M
Revenue(TTM)3.00B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (43.32%)
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)6%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)2%
EPS NY rev (1m)3.08%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 7.83 | ||
| P/S | 0.27 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.1 | ||
| P/B | 0.9 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)3.79
EY10.05%
EPS(NY)4.81
Fwd EY12.76%
FCF(TTM)3.77
FCFY9.99%
OCF(TTM)4.15
OCFY10.99%
SpS137.33
BVpS41.77
TBVpS28.54
PEG (NY)0.61
PEG (5Y)0.85
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 | 3.87 |
F-Score7
WACC8.98%
ROIC/WACC0.72
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 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.
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.