ScanSource, Inc. (SCSC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alliance Entertainment Holding Corp.

TD SYNNEX Corp.

Climb Global Solutions, Inc.

ScanSource, Inc.

Arrow Electronics, Inc.

Avnet, Inc.

Resideo Technologies, Inc.

Taitron Components, Inc.

Semantix, Inc.

BSQUARE Corp.

Recon Technology Ltd.

Why is ScanSource, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.82

Poor long term growth as Net Sales has grown by an annual rate of -0.16% over the last 5 years

Flat results in Jun 25

INTEREST(Q) At USD 2.1 MM has Grown at 14.32%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.29 times

With ROCE of 9.82%, it has a fair valuation with a 1.04 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.55%, its profits have fallen by -13.1%

High Institutional Holdings at 98.55%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -20.55% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ScanSource, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ScanSource, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ScanSource, Inc.

-21.38%

-0.30

37.60%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.16%

EBIT Growth (5y)

7.34%

EBIT to Interest (avg)

10.82

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

3.04

Tax Ratio

24.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.46%

ROE (avg)

9.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.04

EV to EBIT

10.59

EV to EBITDA

7.91

EV to Capital Employed

1.04

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

9.82%

ROE (Latest)

7.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.72% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.34 times

NET SALES(Q)

Highest at USD 812.89 MM

OPERATING PROFIT(Q)

Highest at USD 33.79 MM

PRE-TAX PROFIT(Q)

Highest at USD 29.06 MM

EPS(Q)

Highest at USD 0.88

-3What is not working for the Company

INTEREST(Q)

At USD 2.1 MM has Grown at 14.32%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.29 times

Here's what is working for ScanSource, Inc.

Net Sales

Highest at USD 812.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 33.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 29.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 5.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for ScanSource, Inc.

Interest

At USD 2.1 MM has Grown at 14.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 4.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio