📊 SCSC Key Takeaways
Is Scansource, Inc.. (SCSC) a Good Investment?
ScanSource demonstrates operational stability with strong free cash flow generation ($118.6M) and a conservative balance sheet (0.11x debt/equity), but faces significant headwinds from 6.7% revenue decline and anemic profitability (2.3% net margin). The capital-light model and healthy liquidity provide downside protection, though weak ROE (5.9%) and ROA (2.9%) indicate poor returns on shareholder capital in a commoditized wholesale distribution sector.
Scansource, Inc.. Key Strengths (SCSC)
- Strong free cash flow generation ($118.6M) with 5.2% FCF margin despite thin operating margins
- Conservative financial structure with low leverage (0.11x debt/equity) and solid liquidity (1.86x current ratio)
- Capital-light business model requiring minimal CapEx ($6.8M) limiting reinvestment burden
SCSC Stock Risks: Scansource, Inc.. Investment Risks
- Declining revenue (-6.7% YoY) signals competitive pressure and sector weakness in wholesale computer equipment distribution
- Extremely thin profit margins (2.3% net, 2.9% operating) limit ability to invest in growth or weather margin compression
- Weak returns on capital (5.9% ROE, 2.9% ROA) indicate value destruction relative to cost of equity in low-growth environment
Key Metrics to Watch
- Revenue trend reversal - stabilization of top-line decline is critical
- Gross margin expansion - ability to improve 14% gross margin through pricing or mix shift
- Free cash flow sustainability - ensure cash generation isn't being consumed by working capital swings
Scansource, Inc.. (SCSC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Scansource, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SCSC Profit Margin, ROE & Profitability Analysis
SCSC vs Technology Sector: How Scansource, Inc.. Compares
How Scansource, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Scansource, Inc.. Stock Overvalued? SCSC Valuation Analysis 2026
Based on fundamental analysis, Scansource, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Scansource, Inc.. Balance Sheet: SCSC Debt, Cash & Liquidity
SCSC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Scansource, Inc..'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.54 reflects profitable operations.
SCSC Revenue Growth, EPS Growth & YoY Performance
SCSC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $704.8M | $16.5M | $0.74 |
| Q2 2026 | $747.5M | $16.5M | $0.70 |
| Q1 2026 | $739.7M | $17.0M | $0.69 |
| Q3 2025 | $704.8M | $12.8M | $0.50 |
| Q2 2025 | $747.5M | $15.4M | $0.70 |
| Q1 2025 | $775.6M | $15.4M | $0.61 |
| Q3 2024 | $752.6M | $12.8M | $0.50 |
| Q2 2024 | $884.8M | $15.4M | $1.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Scansource, Inc.. Dividends, Buybacks & Capital Allocation
SCSC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Scansource, Inc.. (CIK: 0000918965)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SCSC
What is the AI rating for SCSC?
Scansource, Inc.. (SCSC) has an AI grade of B with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCSC's key strengths?
Claude: Strong free cash flow generation ($118.6M) with 5.2% FCF margin despite thin operating margins. Conservative financial structure with low leverage (0.11x debt/equity) and solid liquidity (1.86x current ratio).
What are the risks of investing in SCSC?
Claude: Declining revenue (-6.7% YoY) signals competitive pressure and sector weakness in wholesale computer equipment distribution. Extremely thin profit margins (2.3% net, 2.9% operating) limit ability to invest in growth or weather margin compression.
What is SCSC's revenue and growth?
Scansource, Inc.. reported revenue of $2.3B.
Does SCSC pay dividends?
Scansource, Inc.. does not currently pay dividends.
Where can I find SCSC SEC filings?
Official SEC filings for Scansource, Inc.. (CIK: 0000918965) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCSC's EPS?
Scansource, Inc.. has a diluted EPS of $2.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SCSC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Scansource, Inc.. has a B grade with 62% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SCSC stock overvalued or undervalued?
Valuation metrics for SCSC: ROE of 5.9% (sector avg: 22%), net margin of 2.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SCSC's AI grade for 2026?
Our dual AI analysis gives Scansource, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SCSC's free cash flow?
Scansource, Inc..'s operating cash flow is $125.4M, with capital expenditures of $6.8M. FCF margin is 5.2%.
How does SCSC compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.3% (avg: 18%), ROE 5.9% (avg: 22%), current ratio 1.86 (avg: 2.5).