SCANSOURCE INC (SCSC)
US8060371072 - Common Stock
SCSC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 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 These ratings could make SCSC a good candidate 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.
SCSC had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SCSC reported negative operating cash flow in multiple years.
1.2 Ratios
SCSC has a better Return On Assets (4.40%) than 70.40% of its industry peers.
The Return On Equity of SCSC (8.54%) is better than 70.40% of its industry peers.
SCSC has a better Return On Invested Capital (6.22%) than 68.00% 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 9.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROIC | 6.22% |
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
Looking at the Profit Margin, with a value of 2.49%, SCSC is in line with its industry, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Profit Margin of SCSC has grown nicely.
SCSC has a Operating Margin (2.95%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCSC has remained more or less at the same level.
SCSC's Gross Margin of 12.48% is on the low side compared to the rest of the industry. SCSC is outperformed by 74.40% of its industry peers.
SCSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% |
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.
SCSC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SCSC has been reduced compared to 5 years ago.
The debt/assets ratio for SCSC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.00 indicates that SCSC is not in any danger for bankruptcy at the moment.
SCSC has a Altman-Z score of 4.00. This is in the better half of the industry: SCSC outperforms 64.00% of its industry peers.
The Debt to FCF ratio of SCSC is 0.46, which is an excellent value as it means it would take SCSC, only 0.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.46, SCSC belongs to the top of the industry, outperforming 84.80% of the companies in the same industry.
SCSC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, SCSC is in line with its industry, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 4 |
ROIC/WACC0.63
WACC9.82%
2.3 Liquidity
SCSC has a Current Ratio of 2.03. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
SCSC's Current ratio of 2.03 is on the low side compared to the rest of the industry. SCSC is outperformed by 61.60% of its industry peers.
A Quick Ratio of 1.27 indicates that SCSC should not have too much problems paying its short term obligations.
The Quick ratio of SCSC (1.27) is worse than 70.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for SCSC have decreased by -9.66% in the last year.
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.
Looking at the last year, SCSC shows a very negative growth in Revenue. The Revenue has decreased by -15.08% in the last year.
The Revenue has been growing slightly by 0.06% on average over the past years.
EPS 1Y (TTM)-9.66%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%13.51%
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-11.49%
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 13.26% on average per year.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y18.01%
EPS Next 2Y13.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.34%
Revenue Next 2Y1.22%
Revenue Next 3YN/A
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.10 indicates a correct valuation of SCSC.
Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 88.80% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (27.29), we can say SCSC is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.15 indicates a correct 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 91.20% of the companies listed in the same industry.
SCSC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
SCSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCSC is cheaper than 84.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 97.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.64 | ||
| EV/EBITDA | 9.4 |
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 13.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y13.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SCANSOURCE INC
NASDAQ:SCSC (12/23/2024, 8:00:01 PM)
After market: 48.01 0 (0%)48.01
+0.43 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.56%
Inst Owner Change-0.02%
Ins Owners2.16%
Ins Owner Change14.06%
Market Cap1.14B
Analysts45.71
Price Target58.14 (21.1%)
Short Float %8.4%
Short Ratio10.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-5.19%
Min EPS beat(2)-15.97%
Max EPS beat(2)5.58%
EPS beat(4)1
Avg EPS beat(4)-10.91%
Min EPS beat(4)-19.15%
Max EPS beat(4)5.58%
EPS beat(8)3
Avg EPS beat(8)-7.49%
EPS beat(12)6
Avg EPS beat(12)0.14%
EPS beat(16)10
Avg EPS beat(16)9.56%
Revenue beat(2)0
Avg Revenue beat(2)-9.09%
Min Revenue beat(2)-13.24%
Max Revenue beat(2)-4.95%
Revenue beat(4)0
Avg Revenue beat(4)-9.19%
Min Revenue beat(4)-13.24%
Max Revenue beat(4)-4.95%
Revenue beat(8)2
Avg Revenue beat(8)-4.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.64%
Revenue beat(16)8
Avg Revenue beat(16)0.04%
PT rev (1m)9.62%
PT rev (3m)14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)5.42%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.15 | ||
| P/S | 0.36 | ||
| P/FCF | 3.64 | ||
| P/OCF | 3.54 | ||
| P/B | 1.24 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)3.18
EY6.62%
EPS(NY)3.95
Fwd EY8.23%
FCF(TTM)13.2
FCFY27.49%
OCF(TTM)13.56
OCFY28.24%
SpS132.62
BVpS38.66
TBVpS25.62
PEG (NY)0.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.54% | ||
| ROCE | 8.33% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 10.49% | ||
| OM | 2.95% | ||
| PM (TTM) | 2.49% | ||
| GM | 12.48% | ||
| FCFM | 9.95% |
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-Score7
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 30.52% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 265.66% | ||
| Profit Quality | 399.92% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 4 |
F-Score7
WACC9.82%
ROIC/WACC0.63
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)-9.66%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%13.51%
EPS Next Y18.01%
EPS Next 2Y13.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.08%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-11.49%
Revenue Next Year-2.34%
Revenue Next 2Y1.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.42%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year20.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y354.74%
FCF growth 3Y37.89%
FCF growth 5YN/A
OCF growth 1Y378.67%
OCF growth 3Y38.17%
OCF growth 5YN/A