NasdaqGS:SCSC

Stock Analysis Report

Executive Summary

ScanSource, Inc. distributes technology products and solutions in the United States, Canada, Brazil, Latin America, and Europe.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has ScanSource's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.6%

SCSC

4.0%

US Electronic

1.8%

US Market


1 Year Return

-17.3%

SCSC

13.3%

US Electronic

7.3%

US Market

Return vs Industry: SCSC underperformed the US Electronic industry which returned 13.3% over the past year.

Return vs Market: SCSC underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SCSCIndustryMarket
7 Day7.6%4.0%1.8%
30 Day1.8%1.1%-0.7%
90 Day-3.1%4.2%0.06%
1 Year-17.3%-17.3%14.4%13.3%9.7%7.3%
3 Year-13.1%-13.1%54.7%50.4%46.3%36.9%
5 Year-10.8%-10.8%88.7%79.6%64.5%46.5%

Price Volatility Vs. Market

How volatile is ScanSource's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ScanSource undervalued compared to its fair value and its price relative to the market?

13.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SCSC ($31.2) is trading above our estimate of fair value ($19.18)

Significantly Undervalued: SCSC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCSC is good value based on its PE Ratio (13.9x) compared to the Electronic industry average (19.2x).

PE vs Market: SCSC is good value based on its PE Ratio (13.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SCSC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SCSC is good value based on its PB Ratio (0.9x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCSC's forecast earnings growth (16.5% per year) is above the savings rate (2.7%).

Earnings vs Market: SCSC's earnings (16.5% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: SCSC's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCSC's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SCSC's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SCSC's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has ScanSource performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCSC's earnings have declined by -10.9% per year over the past 5 years.

Accelerating Growth: SCSC's earnings growth over the past year (73.7%) exceeds its 5-year average (-10.9% per year).

Earnings vs Industry: SCSC earnings growth over the past year (73.7%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: SCSC's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: SCSC's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: SCSC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ScanSource's financial position?


Financial Position Analysis

Short Term Liabilities: SCSC's short term assets ($1.5B) exceeds its short term liabilities ($700.9M)

Long Term Liabilities: SCSC's short term assets (1.5B) exceeds its long term liabilities (452.2M)


Debt to Equity History and Analysis

Debt Level: SCSC's debt to equity ratio (39.8%) is considered satisfactory

Reducing Debt: SCSC's debt to equity ratio has increased from 0.7% to 39.8% over the past 5 years.

Debt Coverage: SCSC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SCSC's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: SCSC has a high level of physical assets or inventory.

Debt Coverage by Assets: SCSC's debt is covered by short term assets (assets are 4.058440x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SCSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SCSC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SCSC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SCSC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCSC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Mike Baur (62yo)

19.8yrs

Tenure

US$4,456,168

Compensation

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 serves as the P ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD4.46M) is above average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.4yrs

Average Tenure

61yo

Average Age

Experienced Management: SCSC's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

9.8yrs

Average Tenure

71yo

Average Age

Experienced Board: SCSC's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$122,76015 May 19
Michael Grainger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$30.69
SellUS$86,10014 Nov 18
Michael Grainger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceUS$41.00
SellUS$239,40014 Nov 18
Charles Whitchurch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,700
Max PriceUS$42.00

Ownership Breakdown


Management Team

  • Mike Baur (62yo)

    Founder

    • Tenure: 19.8yrs
    • Compensation: US$4.46m
  • Greg Dixon

    Chief Technology Officer

    • Tenure: 26.8yrs
  • Buck Baker (61yo)

    Senior Executive Vice President of Supplier Services

    • Tenure: 0.4yrs
  • R. Benbenek (63yo)

    Senior Executive Vice President of Worldwide Operations & Integration

    • Tenure: 0.4yrs
    • Compensation: US$889.74k
  • Paul Constantine (51yo)

    President of Europe

    • Tenure: 0.4yrs
  • Matt Dean

    Senior Executive VP & General Counsel

    • Tenure: 1.8yrs
  • Mary Gentry

    Vice President of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Gerry Lyons (56yo)

    Senior Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: US$933.09k
  • John Harvey

    Senior Executive Vice President of Worldwide Human Resources

    • Tenure: 0.4yrs
  • Frank Blackwell

    Vice President of Sales for Communications

    • Tenure: 0yrs

Board Members

  • Mike Grainger (67yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$153.94k
  • Mike Baur (62yo)

    Founder

    • Tenure: 19.8yrs
    • Compensation: US$4.46m
  • Charles Whitchurch (72yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$177.94k
  • Peter Browning (78yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$167.94k
  • Jim Foody (89yo)

    Chairman Emeritus

    • Tenure: 9.8yrs
    • Compensation: US$36.00k
  • Jack Reilly (71yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$155.94k
  • Betty Temple (53yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$155.19k

Company Information

ScanSource, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ScanSource, Inc.
  • Ticker: SCSC
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$787.523m
  • Shares outstanding: 25.24m
  • Website: https://www.scansource.com

Number of Employees


Location

  • ScanSource, Inc.
  • 6 Logue Court
  • Greenville
  • South Carolina
  • 29615
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1994
SC3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994

Biography

ScanSource, Inc. distributes technology products and solutions in the United States, Canada, Brazil, Latin America, and Europe. It operates in two segments, Worldwide Barcode, Networking & Security; and Wo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.