ScanSource Stock Analysis, Valuation (NASDAQ:SCSC)

Add to My Stocks
$33.05 $0.2 (0.6%) SCSC stock closing price Feb 16, 2018 (Closing)
Watch Robo Advisor Video of SCSC Stock Analysis
ScanSource
Updated on : Feb 16, 2018
previous close
SCSC 33.1 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Industrial Services
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
4.6%
Operating Profit
Operating Margin:
2%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
360.9M
Debt/Equity Ratio:
 0.42
Compared to the industry
Cash Flow
Operating cash flow:
-$46.8M
Net Income:
$8M
PROS      CONS
Recent Growth
Long Term Growth
Low Debt Burden
PE Valuation
PS Valuation
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SCSC PS :
0.2
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.1%
Return on Equity:
5.2%
Free Cash Flow Margin:
-4.7%
Double Tap To Exit Full Screen
0:00
/

ScanSource Stock Analysis

27 5 2

Take a look at Amigobulls ScanSource stock analysis video. Our SCSC analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ScanSource, Inc. Stock Rating 2.7/5

Amigobulls SCSC stock analysis uses latest quarter 2018 Q2 financial data like ScanSource revenue growth, profit margins and cash flows. We compare ScanSource valuation with its sector peers to gauge relative attractiveness of SCSC stock. ScanSource stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SCSC stock?

  • ScanSource's revenue growth came in at 14.1% in 2018 Q2.
  • Revenue growth has been tremendous with a compounded annual growth of 4.6% over the last 5 years.
  • ScanSource has a lower debt burden than its peers in the Industrial Products sector, with a debt/equity ratio of  0.42.
  • The ScanSource stock currently trades at a price to earnings ratio of 11.1. We rate this as a positive, compared to the industry average of 22.8.
  • SCSC stock is trading at a favorable price to sales multiple of 0.2 as against the Industrial Services industry average multiple of 1.5.

Should you sell SCSC stock?

  • ScanSource's TTM operating margin of 2% was rather poor.
  • ScanSource's LTM Net margins were poor at 1.2%.
  • ScanSource has a poor return on invested capital of 4.1%.
  • ScanSource has a low return on equity of 5.2% over the last twelve months.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -4.7%.

ScanSource Related Company Stock Videos

Comments on this video and ScanSource stock

Amigobulls ScanSource stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, ScanSource revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about SCSC stock.