SCANSOURCE INC (SCSC) Stock Fundamental Analysis
NASDAQ:SCSC • US8060371072
36.58 USD
+0.86 (+2.41%)
At close: Feb 17, 2026
36.58 USD
0 (0%)
After Hours: 2/17/2026, 8:00:02 PM
Taking everything into account, SCSC scores 6 out of 10 in our fundamental rating. SCSC was compared to 122 industry peers in the Electronic Equipment, Instruments & Components industry. While SCSC has a great health rating, its profitability is only average at the moment. 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
- SCSC had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 4.34%, SCSC is doing good in the industry, outperforming 68.85% 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 66.39% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.46%, SCSC is doing good in the industry, outperforming 65.57% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SCSC is in line with the industry average of 8.80%.
| 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 decent Profit Margin value of 2.48%, SCSC is doing good in the industry, outperforming 61.48% of the companies in the same industry.
- SCSC's Profit Margin has declined in the last couple of years.
- SCSC's Operating Margin of 3.12% is in line compared to the rest of the industry. SCSC outperforms 55.74% of its industry peers.
- SCSC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 13.79%, SCSC is doing worse than 72.13% of the companies in the same industry.
- 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%
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 3.83. This indicates that SCSC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SCSC (3.83) is better than 63.93% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.62, SCSC belongs to the top of the industry, outperforming 81.97% 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.
- Looking at the Debt to Equity ratio, with a value of 0.14, SCSC is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.7
WACC9.27%
2.3 Liquidity
- A Current Ratio of 2.16 indicates that SCSC has no problem at all paying its short term obligations.
- SCSC has a Current ratio of 2.16. This is comparable to the rest of the industry: SCSC outperforms 42.62% of its industry peers.
- A Quick Ratio of 1.32 indicates that SCSC should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.32, SCSC is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.61% 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.
- SCSC shows a decrease in Revenue. In the last year, the revenue decreased by -6.72%.
- SCSC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
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 22.48% on average per year.
- Based on estimates for the next years, SCSC will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
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
- A Price/Earnings ratio of 9.78 indicates a reasonable valuation of SCSC.
- Based on the Price/Earnings ratio, SCSC is valued cheaper than 93.44% of the companies in the same industry.
- SCSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.16.
- With a Price/Forward Earnings ratio of 7.58, the valuation of SCSC can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 95.90% of the companies listed in the same industry.
- SCSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCSC is valued cheaply inside the industry as 96.72% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCSC indicates a rather cheap valuation: SCSC is cheaper than 94.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 6.33 |
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 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.83
EPS Next 2Y16.28%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- No dividends for SCSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
36.58
+0.86 (+2.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners102.36%
Inst Owner Change0.49%
Ins Owners1.86%
Ins Owner Change13.14%
Market Cap785.74M
Revenue(TTM)3.04B
Net Income(TTM)74.45M
Analysts80
Price Target54.06 (47.79%)
Short Float %3.31%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)10.02%
Min EPS beat(2)8.3%
Max EPS beat(2)11.74%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-8.09%
Max EPS beat(4)11.74%
EPS beat(8)4
Avg EPS beat(8)-2.86%
EPS beat(12)6
Avg EPS beat(12)-3.26%
EPS beat(16)9
Avg EPS beat(16)1.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-7.9%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-8.36%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.78%
Revenue beat(12)3
Avg Revenue beat(12)-5.69%
Revenue beat(16)6
Avg Revenue beat(16)-3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.26 | ||
| P/FCF | 9.53 | ||
| P/OCF | 8.66 | ||
| P/B | 0.86 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 6.33 |
EPS(TTM)3.74
EY10.22%
EPS(NY)4.83
Fwd EY13.2%
FCF(TTM)3.84
FCFY10.49%
OCF(TTM)4.22
OCFY11.55%
SpS139.89
BVpS42.55
TBVpS29.07
PEG (NY)0.47
PEG (5Y)0.83
Graham Number59.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.15% | ||
| ROCE | 8.44% | ||
| ROIC | 6.46% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 10.3% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.48% | ||
| GM | 13.79% | ||
| FCFM | 2.74% |
ROA(3y)4.23%
ROA(5y)3.58%
ROE(3y)8.72%
ROE(5y)7.73%
ROIC(3y)6.97%
ROIC(5y)7%
ROICexc(3y)7.76%
ROICexc(5y)7.61%
ROICexgc(3y)10.54%
ROICexgc(5y)10.66%
ROCE(3y)9.12%
ROCE(5y)9.15%
ROICexgc growth 3Y-5.14%
ROICexgc growth 5Y7.76%
ROICexc growth 3Y-6.26%
ROICexc growth 5Y9.54%
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%
F-Score7
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 28.72% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.94% | ||
| Profit Quality | 110.71% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.83 |
F-Score7
WACC9.27%
ROIC/WACC0.7
Cap/Depr(3y)30.98%
Cap/Depr(5y)24.57%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.61%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%-5.88%
EPS Next Y20.91%
EPS Next 2Y16.28%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%2.54%
Revenue Next Year4.57%
Revenue Next 2Y4.95%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year37.15%
EBIT Next 3Y18.83%
EBIT Next 5YN/A
FCF growth 1Y-13.87%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-14.57%
OCF growth 3YN/A
OCF growth 5Y-13.07%
SCANSOURCE INC / SCSC FAQ
Can you provide the ChartMill fundamental rating for SCANSOURCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SCSC.
What is the valuation status of SCANSOURCE INC (SCSC) stock?
ChartMill assigns a valuation rating of 9 / 10 to SCANSOURCE INC (SCSC). This can be considered as Undervalued.
How profitable is SCANSOURCE INC (SCSC) stock?
SCANSOURCE INC (SCSC) has a profitability rating of 5 / 10.
Can you provide the financial health for SCSC stock?
The financial health rating of SCANSOURCE INC (SCSC) is 7 / 10.