SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC - Nasdaq - US8060371072 - Common Stock - Currency: USD
SCSC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, SCSC could be worth investigating further for value investing!.
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.
Of the past 5 years SCSC 4 years were profitable.
In multiple years SCSC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.70%, SCSC is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.99%, SCSC is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
SCSC has a Return On Invested Capital of 5.83%. 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 7.48%. This is in line with the industry average of 8.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 6.99% | ||
| ROIC | 5.83% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
1.3 Margins
SCSC's Profit Margin of 2.08% is in line compared to the rest of the industry. SCSC outperforms 56.91% of its industry peers.
In the last couple of years the Profit Margin of SCSC has grown nicely.
SCSC has a Operating Margin of 2.82%. This is comparable to the rest of the industry: SCSC outperforms 55.28% of its industry peers.
In the last couple of years the Operating Margin of SCSC has remained more or less at the same level.
SCSC has a worse Gross Margin (13.08%) than 72.36% of its industry peers.
SCSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.82% | ||
| PM (TTM) | 2.08% | ||
| GM | 13.08% |
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
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
Compared to 5 years ago, SCSC has less shares outstanding
SCSC has a better debt/assets ratio than last year.
2.2 Solvency
SCSC has an Altman-Z score of 3.91. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC's Altman-Z score of 3.91 is fine compared to the rest of the industry. SCSC outperforms 69.92% of its industry peers.
The Debt to FCF ratio of SCSC is 0.57, which is an excellent value as it means it would take SCSC, only 0.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.57, SCSC belongs to the top of the industry, outperforming 82.11% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that SCSC is not too dependend on debt financing.
SCSC's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. SCSC outperforms 54.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.7
WACC8.37%
2.3 Liquidity
A Current Ratio of 2.11 indicates that SCSC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.11, SCSC is in line with its industry, outperforming 44.72% of the companies in the same industry.
SCSC has a Quick Ratio of 1.30. This is a normal value and indicates that SCSC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SCSC (1.30) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
SCSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.93%.
Measured over the past years, SCSC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.73% on average per year.
The Revenue for SCSC has decreased by -15.91% in the past year. This is quite bad
SCSC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.06% yearly.
EPS 1Y (TTM)-3.93%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%0%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-15.52%
3.2 Future
Based on estimates for the next years, SCSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.88% on average per year.
The Revenue is expected to grow by 0.41% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y11.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.4%
Revenue Next 2Y0.41%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 11.55, which indicates a very decent valuation of SCSC.
93.50% 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 29.35. SCSC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.52, 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.
SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
91.06% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaper than 96.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.51 | ||
| EV/EBITDA | 7.79 |
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.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.72
+0.1 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change4.18%
Ins Owners2.03%
Ins Owner Change-1.01%
Market Cap861.45M
Analysts45.71
Price Target56.1 (52.78%)
Short Float %8.08%
Short Ratio6.84
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)1
Avg EPS beat(2)-1.25%
Min EPS beat(2)-8.09%
Max EPS beat(2)5.58%
EPS beat(4)1
Avg EPS beat(4)-9.41%
Min EPS beat(4)-19.15%
Max EPS beat(4)5.58%
EPS beat(8)2
Avg EPS beat(8)-8.53%
EPS beat(12)5
Avg EPS beat(12)-1.97%
EPS beat(16)9
Avg EPS beat(16)7.74%
Revenue beat(2)0
Avg Revenue beat(2)-9.24%
Min Revenue beat(2)-13.54%
Max Revenue beat(2)-4.95%
Revenue beat(4)0
Avg Revenue beat(4)-10.51%
Min Revenue beat(4)-13.54%
Max Revenue beat(4)-4.95%
Revenue beat(8)1
Avg Revenue beat(8)-6.88%
Revenue beat(12)5
Avg Revenue beat(12)-2.77%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)-3.51%
PT rev (3m)-3.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)-4.49%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.29 | ||
| P/FCF | 3.51 | ||
| P/OCF | 3.4 | ||
| P/B | 0.96 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)3.18
EY8.66%
EPS(NY)3.86
Fwd EY10.5%
FCF(TTM)10.46
FCFY28.5%
OCF(TTM)10.81
OCFY29.43%
SpS128.81
BVpS38.39
TBVpS25.58
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 6.99% | ||
| ROCE | 7.8% | ||
| ROIC | 5.83% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 9.34% | ||
| OM | 2.82% | ||
| PM (TTM) | 2.08% | ||
| GM | 13.08% | ||
| FCFM | 8.12% |
ROA(3y)4.42%
ROA(5y)0.5%
ROE(3y)9.76%
ROE(5y)0.47%
ROIC(3y)7.48%
ROIC(5y)6.47%
ROICexc(3y)8.08%
ROICexc(5y)6.93%
ROICexgc(3y)10.86%
ROICexgc(5y)9.8%
ROCE(3y)10.01%
ROCE(5y)8.65%
ROICexcg growth 3Y2.78%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y8.23%
ROICexc growth 5Y7.82%
OM growth 3Y8.93%
OM growth 5Y-0.07%
PM growth 3Y90.35%
PM growth 5Y5.93%
GM growth 3Y3.22%
GM growth 5Y0.25%
F-Score6
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 27.59% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 221.69% | ||
| Profit Quality | 390.11% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.91 |
F-Score6
WACC8.37%
ROIC/WACC0.7
Cap/Depr(3y)29.42%
Cap/Depr(5y)22.71%
Cap/Sales(3y)0.24%
Cap/Sales(5y)0.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.93%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%0%
EPS Next Y12.71%
EPS Next 2Y11.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-15.52%
Revenue Next Year-5.4%
Revenue Next 2Y0.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.26%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year16.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y284.86%
FCF growth 3Y37.89%
FCF growth 5YN/A
OCF growth 1Y303.97%
OCF growth 3Y38.17%
OCF growth 5YN/A