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 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!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
SCSC had positive earnings in each of the past 5 years.
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 4.34%, SCSC is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
With a decent Return On Equity value of 8.15%, SCSC is doing good in the industry, outperforming 68.29% of the companies in the same industry.
SCSC's Return On Invested Capital of 6.46% is fine compared to the rest of the industry. SCSC outperforms 68.29% 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 8.82%.

		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

Looking at the Profit Margin, with a value of 2.48%, SCSC is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
In the last couple of years the Profit Margin of SCSC has declined.
Looking at the Operating Margin, with a value of 3.12%, SCSC is in line with its industry, outperforming 56.91% of the companies in the same industry.
SCSC's Operating Margin has improved in the last couple of years.
SCSC has a worse Gross Margin (13.79%) than 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCSC is destroying value.
SCSC has less shares outstanding than it did 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

An Altman-Z score of 3.94 indicates that SCSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.94, SCSC is in line with its industry, outperforming 58.54% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.62, SCSC belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
SCSC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
SCSC has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: SCSC outperforms 52.03% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.62
Altman-Z	3.94

ROIC/WACC0.78

WACC8.28%

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.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.18% over the past year.
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.
Looking at the last year, SCSC shows a decrease in Revenue. The Revenue has decreased by -4.88% in the last year.
SCSC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.

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

The Earnings Per Share is expected to grow by 24.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCSC will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.23, which indicates a very decent valuation of SCSC.
Based on the Price/Earnings ratio, SCSC is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
SCSC is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.82, the valuation of SCSC can be described as very reasonable.
95.12% of the companies in the same industry are more expensive than SCSC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.72. SCSC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.23
Fwd PE	8.82

4.2 Price Multiples

95.94% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
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	11.33
EV/EBITDA	7.48

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.