Taking everything into account, SCSC scores 6 out of 10 in our fundamental rating. SCSC was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. SCSC has an excellent financial health rating, but there are some minor concerns on its profitability. SCSC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SCSC suitable for value investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SCSC was profitable.
SCSC had a positive operating cash flow in the past year.
Each year in the past 5 years SCSC has been profitable.
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's Return On Assets of 4.34% is fine compared to the rest of the industry. SCSC outperforms 69.11% of its industry peers.
The Return On Equity of SCSC (8.15%) is better than 68.29% of its industry peers.
SCSC's Return On Invested Capital of 6.46% is fine compared to the rest of the industry. SCSC outperforms 67.48% of its industry peers.
SCSC had an Average Return On Invested Capital over the past 3 years of 6.97%. This is in line with the industry average of 8.87%.

		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

With a Profit Margin value of 2.48%, SCSC perfoms like the industry average, outperforming 59.35% of the companies in the same 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.
SCSC's Operating Margin has improved in the last couple of years.
SCSC has a Gross Margin of 13.79%. This is in the lower half of the industry: SCSC underperforms 73.17% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCSC is destroying value.
The number of shares outstanding for SCSC has been reduced compared to 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

SCSC has an Altman-Z score of 3.92. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a Altman-Z score (3.92) which is comparable to the rest of the industry.
SCSC has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
SCSC has a Debt to FCF ratio of 1.62. This is amongst the best in the industry. SCSC outperforms 80.49% 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 Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.62
Altman-Z	3.92

ROIC/WACC0.78

WACC8.24%

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's Current ratio of 2.16 is in line compared to the rest of the industry. SCSC outperforms 43.09% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.32, SCSC is doing worse than 62.60% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.16
Quick Ratio	1.32

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
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

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.
SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.

EPS Next Y20.91%

EPS Next 2Y16.28%

EPS Next 3Y24.78%

EPS Next 5YN/A

Revenue Next Year4.57%

Revenue Next 2Y4.95%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

SCSC is valuated reasonably with a Price/Earnings ratio of 10.83.
Based on the Price/Earnings ratio, SCSC is valued cheaper than 93.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, SCSC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.50 indicates a reasonable valuation of SCSC.
Based on the Price/Forward Earnings ratio, SCSC is valued cheaper than 95.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. SCSC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	10.83
Fwd PE	8.5

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	10.93
EV/EBITDA	7.35

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.
SCSC's earnings are expected to grow with 24.78% in the coming years. This may justify a more expensive valuation.