SCANSOURCE INC (SCSC) Stock Fundamental Analysis
USA - NASDAQ:SCSC - US8060371072 - Common Stock
45.07 USD
+0.05 (+0.1%)
45.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SCSC. SCSC was compared to 125 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 has a decent growth rate and is not valued too expensively.
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.
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 has a better Return On Assets (4.01%) than 68.80% of its industry peers.
SCSC has a Return On Equity of 7.89%. This is in the better half of the industry: SCSC outperforms 68.00% of its industry peers.
SCSC's Return On Invested Capital of 6.28% is fine compared to the rest of the industry. SCSC outperforms 67.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCSC is below the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROIC | 6.28% |
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
SCSC has a Profit Margin (2.35%) which is comparable to the rest of the industry.
SCSC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.98%, SCSC perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
SCSC's Operating Margin has improved in the last couple of years.
The Gross Margin of SCSC (13.44%) is worse than 73.60% of its industry peers.
SCSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% |
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
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
SCSC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCSC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.81 indicates that SCSC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.81, SCSC perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
The Debt to FCF ratio of SCSC is 1.31, which is an excellent value as it means it would take SCSC, only 1.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCSC (1.31) is better than 80.80% 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.
The Debt to Equity ratio of SCSC (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.69
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.01 indicates that SCSC has no problem at all paying its short term obligations.
SCSC has a Current ratio of 2.01. This is comparable to the rest of the industry: SCSC outperforms 41.60% of its industry peers.
SCSC has a Quick Ratio of 1.30. 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 1.30, SCSC is doing worse than 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
SCSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.91%, which is quite good.
SCSC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
The Revenue has decreased by -6.72% in the past year.
The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
3.2 Future
SCSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
SCSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y7.71%
EPS Next 2Y11.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.84%
Revenue Next 2Y5.03%
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 stable.
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
Based on the Price/Earnings ratio of 12.62, the valuation of SCSC can be described as correct.
Based on the Price/Earnings ratio, SCSC is valued cheaper than 96.00% 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 27.20.
A Price/Forward Earnings ratio of 11.72 indicates a reasonable valuation of SCSC.
94.40% 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 22.71. SCSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
95.20% of the companies in the same industry are more expensive than SCSC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SCSC is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.64
PEG (5Y)1.08
EPS Next 2Y11.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.07
+0.05 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.26%
Inst Owner Change-6.77%
Ins Owners2.02%
Ins Owner Change15.12%
Market Cap986.13M
Analysts82.5
Price Target59.16 (31.26%)
Short Float %1.93%
Short Ratio1.52
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)2
Avg EPS beat(2)8.55%
Min EPS beat(2)8.3%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)3.65%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.79%
EPS beat(8)3
Avg EPS beat(8)-6.79%
EPS beat(12)6
Avg EPS beat(12)-4.22%
EPS beat(16)9
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-6.01%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)2.58%
Revenue beat(4)1
Avg Revenue beat(4)-7.62%
Min Revenue beat(4)-14.59%
Max Revenue beat(4)2.58%
Revenue beat(8)1
Avg Revenue beat(8)-8.63%
Revenue beat(12)4
Avg Revenue beat(12)-4.9%
Revenue beat(16)7
Avg Revenue beat(16)-2.61%
PT rev (1m)16%
PT rev (3m)19.18%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.32 | ||
| P/FCF | 9.48 | ||
| P/OCF | 8.78 | ||
| P/B | 1.09 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)3.57
EY7.92%
EPS(NY)3.85
Fwd EY8.53%
FCF(TTM)4.76
FCFY10.55%
OCF(TTM)5.13
OCFY11.39%
SpS138.98
BVpS41.43
TBVpS28
PEG (NY)1.64
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 7.89% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 10.15% | ||
| OM | 2.98% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.44% | ||
| FCFM | 3.42% |
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%
ROICexcg growth 3Y-5.14%
ROICexcg 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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 11.97 | ||
| Cash Conversion | 93.02% | ||
| Profit Quality | 145.45% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.81 |
F-Score6
WACC9.15%
ROIC/WACC0.69
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)15.91%
EPS 3Y-3.4%
EPS 5Y11.73%
EPS Q2Q%27.5%
EPS Next Y7.71%
EPS Next 2Y11.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-4.85%
Revenue growth 5Y-0.05%
Sales Q2Q%8.95%
Revenue Next Year5.84%
Revenue Next 2Y5.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.35%
EBIT growth 3Y-9.5%
EBIT growth 5Y10.29%
EBIT Next Year36.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.34%
FCF growth 3YN/A
FCF growth 5Y-13.9%
OCF growth 1Y-69.77%
OCF growth 3YN/A
OCF growth 5Y-13.07%