ScoreWhy is ScanSource, Inc. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.82
2
Poor long term growth as Net Sales has grown by an annual rate of 2.77% over the last 5 years
3
Flat results in Dec 25
- OPERATING CASH FLOW(Y) Lowest at USD 127.75 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 1,284.48
- OPERATING PROFIT(Q) Lowest at USD 25 MM
4
With ROCE of 10.18%, it has a very attractive valuation with a 0.84 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 -2.52%, its profits have risen by 15.4% ; the PEG ratio of the company is 0.4
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.87% over the previous quarter.
6
Below par performance in long term as well as near term
- Along with generating -2.52% 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 ReportHow 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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
ScanSource, Inc.
-2.52%
-0.58
39.62%
S&P 500
18.34%
0.95
19.22%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.77%
EBIT Growth (5y)
13.01%
EBIT to Interest (avg)
10.82
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
3.00
Tax Ratio
24.60%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
10.46%
ROE (avg)
9.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.84
EV to EBIT
8.25
EV to EBITDA
6.44
EV to Capital Employed
0.84
EV to Sales
0.26
PEG Ratio
0.39
Dividend Yield
NA
ROCE (Latest)
10.18%
ROE (Latest)
8.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.13% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 5.36 times
DEBTORS TURNOVER RATIO(HY)
Highest at 5.24 times
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 127.75 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 1,284.48
OPERATING PROFIT(Q)
Lowest at USD 25 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.26 %
PRE-TAX PROFIT(Q)
At USD 20.41 MM has Fallen at -20.21%
Here's what is working for ScanSource, Inc.
Inventory Turnover Ratio
Highest at 5.36 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 5.24 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.13% (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 Coverage Ratio
Lowest at 1,284.48
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 127.75 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit
Lowest at USD 25 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 3.26 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At USD 20.41 MM has Fallen at -20.21%
over average net sales of the previous four periods of USD 25.59 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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