ScanSource Stock Analysis, Valuation (NASDAQ:SCSC)

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$41.35 $0.75 (1.85%) SCSC stock closing price Jun 15, 2018 (Closing)

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 2.5/5

Amigobulls SCSC stock analysis uses latest quarter 2018 Q3 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?

  • With a debt/equity ratio of 0.32, ScanSource is comparatively less leveraged than its peers in the -sectordesc- sector.
  • The price to earnings multiple of 13.7 is attractive when compared with the sector average PE ratio of 21.2.
  • The lower PS ratio 0.3 for SCSC stock versus Industrial Products sector average of 1.4 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 8.8.

Should you sell SCSC stock?

  • ScanSource had an unimpressive average operating margin of 1.86 during the Last Twelve Months (LTM).
  • ScanSource's Net margins were poor at 1.1% in the last twelve months.
  • ScanSource provides a low return on invested capital of 3.8.
  • ScanSource has a low return on equity of 4.9 over the last twelve months.

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.