SCANSOURCE INC (SCSC) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SCSC • US8060371072

36.36 USD
-7.97 (-17.98%)
Last: Feb 5, 2026, 08:00 PM
Fundamental Rating

6

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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SCSC may be a bit undervalued, certainly considering the very reasonable score on growth This makes SCSC very considerable for value investing!


Dividend Valuation Growth Profitability Health

5

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.
  • In the past 5 years SCSC has always been profitable.
  • The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple years.
SCSC Yearly Net Income VS EBIT VS OCF VS FCFSCSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.34%, SCSC is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 8.15%, SCSC is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 6.46%, SCSC is doing good in the industry, outperforming 65.85% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SCSC is in line with the industry average of 8.89%.
Industry RankSector 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%
SCSC Yearly ROA, ROE, ROICSCSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • With a decent Profit Margin value of 2.48%, SCSC is doing good in the industry, outperforming 60.98% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SCSC has declined.
  • The Operating Margin of SCSC (3.12%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of SCSC has grown nicely.
  • Looking at the Gross Margin, with a value of 13.79%, SCSC is doing worse than 73.17% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SCSC has grown nicely.
Industry RankSector 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%
SCSC Yearly Profit, Operating, Gross MarginsSCSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • SCSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for SCSC has been reduced compared to 1 year ago.
  • Compared to 5 years ago, SCSC has less shares outstanding
  • SCSC has a better debt/assets ratio than last year.
SCSC Yearly Shares OutstandingSCSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
SCSC Yearly Total Debt VS Total AssetsSCSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • SCSC has an Altman-Z score of 3.85. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SCSC (3.85) is better than 62.60% 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.
  • The Debt to FCF ratio of SCSC (1.62) is better than 81.30% of its industry peers.
  • A Debt/Equity ratio of 0.14 indicates that SCSC is not too dependend on debt financing.
  • SCSC has a Debt to Equity ratio (0.14) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.62
Altman-Z 3.85
ROIC/WACC0.46
WACC14.13%
SCSC Yearly LT Debt VS Equity VS FCFSCSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

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.
  • The Current ratio of SCSC (2.16) is comparable to the rest of the industry.
  • SCSC has a Quick Ratio of 1.32. 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 Quick ratio of 1.32. This is in the lower half of the industry: SCSC underperforms 62.60% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.32
SCSC Yearly Current Assets VS Current LiabilitesSCSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 17.61% 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.
  • The Revenue has decreased by -6.72% in the past 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)-6.72%
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.
  • SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
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.
SCSC Yearly Revenue VS EstimatesSCSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
SCSC Yearly EPS VS EstimatesSCSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • SCSC is valuated reasonably with a Price/Earnings ratio of 9.72.
  • 91.87% 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 27.67. SCSC is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.53 indicates a rather cheap valuation of SCSC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.94% of the companies listed in the same industry.
  • SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.72
Fwd PE 7.53
SCSC Price Earnings VS Forward Price EarningsSCSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaper than 96.75% of the companies in the same industry.
  • 93.50% of the companies in the same industry are more expensive than SCSC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.68
EV/EBITDA 6.57
SCSC Per share dataSCSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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 22.48% in the coming years.
PEG (NY)0.47
PEG (5Y)0.83
EPS Next 2Y16.28%
EPS Next 3Y22.48%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SCSC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SCANSOURCE INC

NASDAQ:SCSC (2/5/2026, 8:00:02 PM)

36.36

-7.97 (-17.98%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners102.36%
Inst Owner Change1.38%
Ins Owners1.86%
Ins Owner Change12.53%
Market Cap797.74M
Revenue(TTM)3.04B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (48.68%)
Short Float %2.72%
Short Ratio3.2
Dividend
Industry RankSector 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)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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
Industry RankSector Rank
PE 9.72
Fwd PE 7.53
P/S 0.27
P/FCF 9.68
P/OCF 8.79
P/B 0.87
P/tB 1.28
EV/EBITDA 6.57
EPS(TTM)3.74
EY10.29%
EPS(NY)4.83
Fwd EY13.28%
FCF(TTM)3.76
FCFY10.33%
OCF(TTM)4.14
OCFY11.37%
SpS136.96
BVpS41.66
TBVpS28.46
PEG (NY)0.47
PEG (5Y)0.83
Graham Number59.21
Profitability
Industry RankSector 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 RankSector 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 3.85
F-Score7
WACC14.13%
ROIC/WACC0.46
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 Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year37.15%
EBIT Next 3Y18.83%
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.


What is the valuation status of SCANSOURCE INC (SCSC) stock?

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.


Can you provide the financial health for SCSC stock?

The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.