ScanSource Stock Analysis, Valuation (NASDAQ:SCSC)

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$40.7 $0.05 (0.12%) SCSC stock closing price Sep 19, 2017 (Closing)
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ScanSource
Updated on : Sep 19, 2017
previous close
SCSC 40.7 (0%)
S&P 500 2506.7 (0%)
Closing Price On: Sep 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Industrial Services
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.5%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
97.3M
Debt/Equity Ratio:
 0.12
Compared to the industry
Cash Flow
Operating cash flow:
$10.8M
Net Income:
$19M
PROS      CONS
Low Debt Burden
PE Valuation
PS Valuation
Operating Margins
Net Margins
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SCSC PS :
0.3
Industry PS :
1.4
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.2%
Return on Equity:
8.7%
Free Cash Flow Margin:
0.9%
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ScanSource Analysis Video

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View ScanSource stock analysis video. This is our SCSC analyst opinion covering the buy and sell arguments for SCSC stock.

ScanSource, Inc. Stock Rating (3.1/5)

Our ScanSource stock opinion is based on fundamentals of the company. This ScanSource stock analysis is based on latest 2017 Q4 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy SCSC stock?

  • ScanSource has a lower debt burden than its peers in the Industrial Products sector, with a debt/equity ratio of  0.12.
  • The price to earnings multiple of 14.7 is attractive when compared with the industry average PE ratio of 22.9.
  • The lower PS ratio 0.3 for SCSC stock versus Industrial Services industry average of 1.4 is a positive for the company.

Should you sell SCSC stock?

  • ScanSource had an unimpressive average operating margin of 2.5% during the Last Twelve Months (LTM).
  • ScanSource's LTM Net margins were poor at 1.9%.
  • Cash flow from operations is low at 0.6 times the net income.
  • The company has an anaemic Free Cash Flow (FCF) margin of 0.9%.

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