SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC - Nasdaq - US8060371072 - Common Stock - Currency: USD
Taking everything into account, SCSC scores 5 out of 10 in our fundamental rating. SCSC was compared to 125 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 has a bad growth rate and is valued cheaply. These ratings could make SCSC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SCSC was profitable.
SCSC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.92%, SCSC is doing good in the industry, outperforming 68.80% of the companies in the same industry.
SCSC has a better Return On Equity (7.49%) than 68.80% of its industry peers.
With a decent Return On Invested Capital value of 5.88%, SCSC is doing good in the industry, outperforming 66.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCSC is in line with the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 7.49% | ||
| ROIC | 5.88% |
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 2.27% is fine compared to the rest of the industry. SCSC outperforms 63.20% of its industry peers.
In the last couple of years the Profit Margin of SCSC has grown nicely.
The Operating Margin of SCSC (2.90%) 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 has a worse Gross Margin (13.48%) than 72.80% of its industry peers.
SCSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.9% | ||
| PM (TTM) | 2.27% | ||
| GM | 13.48% |
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
SCSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SCSC has less shares outstanding
Compared to 5 years ago, SCSC has less shares outstanding
Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
SCSC has an Altman-Z score of 3.90. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
SCSC has a Altman-Z score of 3.90. 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 0.91, which is an excellent value as it means it would take SCSC, only 0.91 years of fcf income to pay off all of its debts.
SCSC has a better Debt to FCF ratio (0.91) than 83.20% of its industry peers.
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 (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.66
WACC8.95%
2.3 Liquidity
SCSC has a Current Ratio of 2.07. This indicates that SCSC is financially healthy and has no problem in meeting its short term obligations.
SCSC has a Current ratio of 2.07. This is comparable to the rest of the industry: SCSC outperforms 41.60% 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 64.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
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 -14.06% in the past year. This is quite bad
The Revenue has been growing slightly by 0.06% on average over the past years.
EPS 1Y (TTM)10.2%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%24.64%
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-6.34%
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 11.27% on average per year.
SCSC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.58% yearly.
EPS Next Y15.25%
EPS Next 2Y11.74%
EPS Next 3Y11.27%
EPS Next 5YN/A
Revenue Next Year-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.58%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.81, the valuation of SCSC can be described as correct.
SCSC's Price/Earnings ratio is rather cheap when compared to the industry. SCSC is cheaper than 93.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of SCSC to the average of the S&P500 Index (27.45), we can say SCSC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.16, the valuation of SCSC can be described as very reasonable.
93.60% 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 21.90. SCSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 8.29 |
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)0.84
PEG (5Y)N/A
EPS Next 2Y11.74%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.9
+0.14 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.12%
Inst Owner Change-7.09%
Ins Owners2.06%
Ins Owner Change-2.71%
Market Cap969.54M
Analysts82.5
Price Target51 (18.88%)
Short Float %7.21%
Short Ratio7.23
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)0.35%
Min EPS beat(2)-8.09%
Max EPS beat(2)8.79%
EPS beat(4)2
Avg EPS beat(4)-2.42%
Min EPS beat(4)-15.97%
Max EPS beat(4)8.79%
EPS beat(8)2
Avg EPS beat(8)-7.91%
EPS beat(12)5
Avg EPS beat(12)-5.58%
EPS beat(16)9
Avg EPS beat(16)6.33%
Revenue beat(2)0
Avg Revenue beat(2)-14.07%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)-13.54%
Revenue beat(4)0
Avg Revenue beat(4)-11.58%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)-4.95%
Revenue beat(8)1
Avg Revenue beat(8)-8.52%
Revenue beat(12)4
Avg Revenue beat(12)-4.75%
Revenue beat(16)7
Avg Revenue beat(16)-1.9%
PT rev (1m)-0.99%
PT rev (3m)-0.99%
EPS NQ rev (1m)3.44%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)3.57%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-5.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.33 | ||
| P/FCF | 6.36 | ||
| P/OCF | 6.08 | ||
| P/B | 1.08 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 8.29 |
EPS(TTM)3.35
EY7.81%
EPS(NY)3.85
Fwd EY8.96%
FCF(TTM)6.74
FCFY15.72%
OCF(TTM)7.06
OCFY16.45%
SpS131.59
BVpS39.9
TBVpS26.77
PEG (NY)0.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 7.49% | ||
| ROCE | 7.87% | ||
| ROIC | 5.88% | ||
| ROICexc | 6.79% | ||
| ROICexgc | 9.89% | ||
| OM | 2.9% | ||
| PM (TTM) | 2.27% | ||
| GM | 13.48% | ||
| FCFM | 5.12% |
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 Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 23.55% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.47% | ||
| Profit Quality | 225.6% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.9 |
F-Score6
WACC8.95%
ROIC/WACC0.66
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)10.2%
EPS 3Y3.98%
EPS 5Y-1.73%
EPS Q2Q%24.64%
EPS Next Y15.25%
EPS Next 2Y11.74%
EPS Next 3Y11.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y1.14%
Revenue growth 5Y0.06%
Sales Q2Q%-6.34%
Revenue Next Year-10.48%
Revenue Next 2Y-3.07%
Revenue Next 3Y-0.58%
Revenue Next 5YN/A
EBIT growth 1Y-13.63%
EBIT growth 3Y10.17%
EBIT growth 5Y0%
EBIT Next Year16.8%
EBIT Next 3Y12.03%
EBIT Next 5YN/A
FCF growth 1Y239.56%
FCF growth 3Y37.89%
FCF growth 5YN/A
OCF growth 1Y260.73%
OCF growth 3Y38.17%
OCF growth 5YN/A