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ScanSource

Nasdaq:SCSC
Snowflake Description

Very undervalued with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SCSC
Nasdaq
$973M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

ScanSource, Inc. distributes technology products and solutions in North America, Latin America, and Europe. The last earnings update was 43 days ago. More info.


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SCSC Share Price and Events
7 Day Returns
0%
NasdaqGS:SCSC
0.7%
US Electronic
1.2%
US Market
1 Year Returns
10.5%
NasdaqGS:SCSC
-0.3%
US Electronic
3%
US Market
SCSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ScanSource (SCSC) 0% -3.8% 9.3% 10.5% -4% -1.9%
US Electronic 0.7% 1.1% 21.2% -0.3% 59.3% 59.2%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • SCSC outperformed the Electronic industry which returned -0.3% over the past year.
  • SCSC outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SCSC
Industry
5yr Volatility vs Market
Related Companies

SCSC Value

 Is ScanSource undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ScanSource to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ScanSource.

NasdaqGS:SCSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SCSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (38.28%))
1.265
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.265 * 5.96%)
10.27%

Discounted Cash Flow Calculation for NasdaqGS:SCSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ScanSource is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SCSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.27%)
2019 88.60 Analyst x2 80.35
2020 141.95 Analyst x2 116.75
2021 205.16 Est @ 44.53% 153.03
2022 270.80 Est @ 31.99% 183.18
2023 333.66 Est @ 23.21% 204.68
2024 390.60 Est @ 17.07% 217.31
2025 440.47 Est @ 12.77% 222.23
2026 483.44 Est @ 9.76% 221.20
2027 520.41 Est @ 7.65% 215.95
2028 552.54 Est @ 6.17% 207.93
Present value of next 10 years cash flows $1,822.60
NasdaqGS:SCSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $552.54 × (1 + 2.73%) ÷ (10.27% – 2.73%)
$7,531.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,531.51 ÷ (1 + 10.27%)10
$2,834.27
NasdaqGS:SCSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,822.60 + $2,834.27
$4,656.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,656.87 / 25.70
$181.18
NasdaqGS:SCSC Discount to Share Price
Calculation Result
Value per share (USD) From above. $181.18
Current discount Discount to share price of $37.85
= -1 x ($37.85 - $181.18) / $181.18
79.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ScanSource is available for.
Intrinsic value
>50%
Share price is $37.85 vs Future cash flow value of $181.18
Current Discount Checks
For ScanSource to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ScanSource's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ScanSource's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ScanSource's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ScanSource's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SCSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.16
NasdaqGS:SCSC Share Price ** NasdaqGS (2019-03-20) in USD $37.85
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.54x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ScanSource.

NasdaqGS:SCSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SCSC Share Price ÷ EPS (both in USD)

= 37.85 ÷ 2.16

17.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScanSource is good value based on earnings compared to the US Electronic industry average.
  • ScanSource is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does ScanSource's expected growth come at a high price?
Raw Data
NasdaqGS:SCSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
28.4%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:SCSC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.51x ÷ 28.4%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScanSource is good value based on expected growth next year.
Price based on value of assets
What value do investors place on ScanSource's assets?
Raw Data
NasdaqGS:SCSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $35.00
NasdaqGS:SCSC Share Price * NasdaqGS (2019-03-20) in USD $37.85
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGS:SCSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SCSC Share Price ÷ Book Value per Share (both in USD)

= 37.85 ÷ 35.00

1.08x

* Primary Listing of ScanSource.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScanSource is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess ScanSource's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. ScanSource has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SCSC Future Performance

 How is ScanSource expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ScanSource expected to grow at an attractive rate?
  • ScanSource's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ScanSource's earnings growth is expected to exceed the United States of America market average.
  • ScanSource's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SCSC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SCSC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 28.4%
NasdaqGS:SCSC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3.2%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SCSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SCSC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 4,117 155 87 3
2019-06-30 3,997 101 70 3
NasdaqGS:SCSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,908 63 55
2018-09-30 3,895 71 43
2018-06-30 3,846 28 33
2018-03-31 3,770 5 42
2017-12-31 3,688 -28 44
2017-09-30 3,560 51 59
2017-06-30 3,568 95 69
2017-03-31 3,528 112 63
2016-12-31 3,513 128 65
2016-09-30 3,602 116 62
2016-06-30 3,540 52 64
2016-03-31 3,519 73 67

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ScanSource's earnings are expected to grow significantly at over 20% yearly.
  • ScanSource's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SCSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from ScanSource Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SCSC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 3.20 3.41 2.84 3.00
2019-06-30 2.70 2.83 2.54 3.00
NasdaqGS:SCSC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.16
2018-09-30 1.69
2018-06-30 1.30
2018-03-31 1.64
2017-12-31 1.71
2017-09-30 2.32
2017-06-30 2.74
2017-03-31 2.49
2016-12-31 2.54
2016-09-30 2.41
2016-06-30 2.40
2016-03-31 2.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ScanSource will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ScanSource's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ScanSource has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SCSC Past Performance

  How has ScanSource performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ScanSource's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ScanSource's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • ScanSource's 1-year earnings growth exceeds its 5-year average (27.2% vs -6.7%)
  • ScanSource's earnings growth has not exceeded the US Electronic industry average in the past year (27.2% vs 61%).
Earnings and Revenue History
ScanSource's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ScanSource Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SCSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,908.41 55.34 310.73
2018-09-30 3,894.60 43.33 303.22
2018-06-30 3,846.26 33.15 299.80
2018-03-31 3,769.70 41.74 291.32
2017-12-31 3,687.60 43.51 282.48
2017-09-30 3,560.18 58.58 274.60
2017-06-30 3,568.19 69.25 264.68
2017-03-31 3,528.37 63.20 243.41
2016-12-31 3,513.23 64.82 241.25
2016-09-30 3,601.96 62.44 241.33
2016-06-30 3,540.23 63.62 239.82
2016-03-31 3,519.44 67.14 255.14
2015-12-31 3,484.24 66.04 251.68
2015-09-30 3,297.74 62.21 236.37
2015-06-30 3,218.63 65.42 210.99
2015-03-31 3,120.06 76.08 207.00
2014-12-31 3,039.85 80.08 195.47
2014-09-30 2,973.45 81.56 193.11
2014-06-30 2,913.63 81.79 192.49
2014-03-31 2,868.20 41.37 190.37
2013-12-31 2,868.17 38.40 190.40
2013-09-30 2,875.26 36.46 190.50
2013-06-30 2,876.96 34.66 190.02
2013-03-31 2,918.76 67.76 189.53
2012-12-31 2,943.67 68.54 189.50
2012-09-30 2,978.64 73.55 188.58
2012-06-30 3,015.30 74.29 188.09
2012-03-31 2,995.72 74.16 186.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ScanSource has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ScanSource used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • ScanSource's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ScanSource's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ScanSource has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SCSC Health

 How is ScanSource's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ScanSource's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ScanSource is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ScanSource's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ScanSource's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ScanSource Company Filings, last reported 2 months ago.

NasdaqGS:SCSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 899.50 372.41 22.75
2018-09-30 877.90 281.86 18.86
2018-06-30 866.38 249.43 27.13
2018-03-31 877.80 282.16 35.36
2017-12-31 860.79 360.93 35.44
2017-09-30 852.98 285.76 23.62
2017-06-30 837.15 97.30 56.12
2017-03-31 808.72 113.93 62.19
2016-12-31 787.54 141.67 45.07
2016-09-30 773.16 166.14 45.13
2016-06-30 774.50 76.86 61.40
2016-03-31 757.37 79.84 40.85
2015-12-31 754.79 115.12 39.44
2015-09-30 764.69 94.47 41.24
2015-06-30 808.99 8.83 121.65
2015-03-31 799.05 11.87 93.58
2014-12-31 818.75 5.43 121.51
2014-09-30 810.27 5.43 139.86
2014-06-30 802.64 5.43 194.85
2014-03-31 772.79 5.43 183.56
2013-12-31 751.45 5.43 157.13
2013-09-30 723.75 5.43 193.77
2013-06-30 695.96 5.43 148.16
2013-03-31 709.91 5.43 93.91
2012-12-31 696.96 27.78 31.46
2012-09-30 676.14 17.64 38.73
2012-06-30 652.31 9.70 29.17
2012-03-31 642.45 46.92 34.30
  • ScanSource's level of debt (41.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.7% vs 41.4% today).
  • Debt is not well covered by operating cash flow (17%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.2x coverage).
X
Financial health checks
We assess ScanSource's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ScanSource has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SCSC Dividends

 What is ScanSource's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from ScanSource dividends.
If you bought $2,000 of ScanSource shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate ScanSource's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate ScanSource's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SCSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SCSC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as ScanSource has not reported any payouts.
  • Unable to verify if ScanSource's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of ScanSource's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ScanSource has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ScanSource's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ScanSource afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ScanSource has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SCSC Management

 What is the CEO of ScanSource's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Baur
COMPENSATION $4,456,168
AGE 61
TENURE AS CEO 19.2 years
CEO Bio

Mr. Michael L. Baur, also known as Mike, Founded ScanSource, Inc. in December 1992 and has been its Chief Executive Officer since January 2000 and Chairman since February, 1, 2019. Mr. Baur served as the President of ScanSource, Inc., from December 1992 to June 2007. Prior to Scansource Inc., Mr. Baur served in various positions at Argent Technologies, Inc., including President and General Manager from April 1991 to November 1992. In September 1989, he joined Gates as Product Manager and served as Merchandising Director from February 1990 to March 1991. He has been an Executive Director of ScanSource, Inc. since December 1995.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year.
  • Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ScanSource management team in years:

5.7
Average Tenure
57.5
Average Age
  • The average tenure for the ScanSource management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Baur

TITLE
Founder
COMPENSATION
$4M
AGE
61
TENURE
19.2 yrs

Gerry Lyons

TITLE
Executive VP & CFO
COMPENSATION
$933K
AGE
55

James Sommese

TITLE
Vice President of Operations
AGE
47
TENURE
15.9 yrs

Greg Dixon

TITLE
Chief Technology Officer
TENURE
26.3 yrs

Blake Zemp

TITLE
Chief Information Officer
TENURE
4.9 yrs

Mary Gentry

TITLE
Vice President of Investor Relations & Treasurer

Matt Dean

TITLE
VP & General Counsel
TENURE
1.2 yrs

Buck Baker

TITLE
President of Worldwide Communications & Services
AGE
60
TENURE
5.7 yrs

Christy Thompson

TITLE
Vice President of Worldwide Marketing
TENURE
5.3 yrs

Frank Blackwell

TITLE
Vice President of Sales for Communications
Board of Directors Tenure

Average tenure and age of the ScanSource board of directors in years:

9.3
Average Tenure
70
Average Age
  • The tenure for the ScanSource board of directors is about average.
Board of Directors

Jim Foody

TITLE
Chairman Emeritus
COMPENSATION
$36K
AGE
88
TENURE
9.3 yrs

Mike Baur

TITLE
Founder
COMPENSATION
$4M
AGE
61
TENURE
0.1 yrs

Jack Reilly

TITLE
Director
COMPENSATION
$156K
AGE
70
TENURE
17.8 yrs

Mike Grainger

TITLE
Director
COMPENSATION
$154K
AGE
66
TENURE
14.4 yrs

Charles Whitchurch

TITLE
Director
COMPENSATION
$178K
AGE
71
TENURE
10.1 yrs

Peter Browning

TITLE
Lead Independent Director
COMPENSATION
$168K
AGE
77
TENURE
0.1 yrs

Betty Temple

TITLE
Director
COMPENSATION
$155K
AGE
53
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 18 Sell Michael Grainger Individual 13. Nov 18 13. Nov 18 -2,100 $41.00 $-86,100
14. Nov 18 Sell Charles Whitchurch Individual 09. Nov 18 09. Nov 18 -5,700 $42.00 $-239,400
X
Management checks
We assess ScanSource's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ScanSource has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SCSC News

Simply Wall St News

The ScanSource Share Price Has Gained 11% And Shareholders Are Hoping For More

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This EPS growth is significantly higher than the 11% increase in the share price. … So it seems like the market has cooled on ScanSource, despite the growth.

Simply Wall St -

Is ScanSource, Inc. (NASDAQ:SCSC) Overpaying Its CEO?

Mike Baur became the CEO of ScanSource, Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mike Baur's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Here's What ScanSource, Inc.'s (NASDAQ:SCSC) P/E Ratio Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … ScanSource has a price to earnings ratio of 17.79, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

With A 4.9% Return On Equity, Is ScanSource, Inc. (NASDAQ:SCSC) A Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.049 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Worried About Insider Transactions At ScanSource, Inc. (NASDAQ:SCSC)?

So shareholders might well want to know whether insiders have been buying or selling shares in ScanSource, Inc. … In the last twelve months, the biggest single sale by an insider was when Director Charles Whitchurch sold US$239k worth of shares at a price of US$42.00 per share. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

ScanSource, Inc. (NASDAQ:SCSC) Is Trading At A 44.69% Discount

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

How Financially Strong Is ScanSource Inc (NASDAQ:SCSC)?

While small-cap stocks, such as ScanSource Inc (NASDAQ:SCSC) with its market cap of US$974m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

ScanSource Inc (NASDAQ:SCSC): Assessing Capital Returns

and want a simplistic look at the return on ScanSource Inc (NASDAQ:SCSC) stock. … Therefore, looking at how efficiently ScanSource is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

How Should Investors React To ScanSource Inc's (NASDAQ:SCSC) CEO Pay?

How Does Mike Baur's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$1m. … Thus we can conclude that Mike Baur receives more in total compensation than the median of a group of companies in the same market, and of similar size to ScanSource Inc

Simply Wall St -

Are ScanSource Inc's (NASDAQ:SCSC) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like ScanSource Inc (NASDAQ:SCSC), with a market cap of US$1.09b. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

SCSC Company Info

Description

ScanSource, Inc. distributes technology products and solutions in North America, Latin America, and Europe. It operates in two segments, Worldwide Barcode, Networking & Security (WW Barcode, Networking & Security); and Worldwide Communications & Services (WW Communications & Services). The WW Barcode, Networking & Security segment offers a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, intrusion-related, and wireless and networking infrastructure products; and video conferencing, cloud, POS portal, and other services. The WW Communications & Services segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets comprising education, healthcare, and government. It also provides professional, contact center, and infrastructure services; and distributes communications technologies, digital networks, and cyber security products. The company also offers pre-sale business tools and value-added services that include market and technology solution, education and training, product configuration tool, technical support, logistics, and channel financial services. ScanSource, Inc. was founded in 1992 and is headquartered in Greenville, South Carolina.

Details
Name: ScanSource, Inc.
SCSC
Exchange: NasdaqGS
Founded: 1992
$972,833,644
25,702,342
Website: http://www.scansource.com
Address: ScanSource, Inc.
6 Logue Court,
Greenville,
South Carolina, 29615,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SCSC Common Stock Nasdaq Global Select US USD 18. Mar 1994
DB SC3 Common Stock Deutsche Boerse AG DE EUR 18. Mar 1994
Number of employees
Current staff
Staff numbers
2,600
ScanSource employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:45
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/06
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.