📊 SCSC Key Takeaways
Is Scansource, Inc.. (SCSC) a Good Investment?
ScanSource faces significant operational headwinds with declining revenue (-6.7% YoY) and net income (-7.2% YoY) in a structurally low-margin wholesale distribution business (2.4% net margin, 2.9% operating margin). Poor returns on capital (4.0% ROE, 2.1% ROA) indicate inefficient capital deployment, and the thin margin structure leaves minimal room for competitive pressures or cost absorption despite a fortress balance sheet.
Why Buy Scansource, Inc.. Stock? SCSC Key Strengths
- Strong balance sheet with minimal leverage (0.11x debt/equity ratio)
- Positive free cash flow generation of $49.7M with 3.3% FCF margin
- Adequate liquidity position with 1.96x current ratio providing financial flexibility
SCSC Stock Risks: Scansource, Inc.. Investment Risks
- Declining revenue (-6.7% YoY) and net income (-7.2% YoY) indicating market share loss or sector contraction
- Razor-thin margins (2.4% net, 2.9% operating) create vulnerability to pricing pressure or cost inflation with minimal buffer
- Severely poor returns on capital (4.0% ROE, 2.1% ROA) indicate capital is not being deployed efficiently in the business
Key Metrics to Watch
- Revenue growth stabilization - trending positive would signal end to decline cycle
- Gross margin trajectory - compression would be highly concerning given already-thin structure
- Return on equity improvement - need evidence of better capital efficiency to justify equity investment
Scansource, Inc.. (SCSC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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 |
| Q1 2024 | $876.3M | $15.4M | $0.61 |
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 rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCSC's key strengths?
Claude: Strong balance sheet with minimal leverage (0.11x debt/equity ratio). Positive free cash flow generation of $49.7M with 3.3% FCF margin.
What are the risks of investing in SCSC?
Claude: Declining revenue (-6.7% YoY) and net income (-7.2% YoY) indicating market share loss or sector contraction. Razor-thin margins (2.4% net, 2.9% operating) create vulnerability to pricing pressure or cost inflation with minimal buffer.
What is SCSC's revenue and growth?
Scansource, Inc.. reported revenue of $1.5B.
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 $1.63.
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 rating reflects both perspectives for balanced insights.
Is SCSC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Scansource, Inc.. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SCSC stock overvalued or undervalued?
Valuation metrics for SCSC: ROE of 4.0% (sector avg: 22%), net margin of 2.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SCSC stock in 2026?
Our dual AI analysis gives Scansource, Inc.. a combined SELL rating 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 $54.1M, with capital expenditures of $4.4M. FCF margin is 3.3%.
How does SCSC compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.4% (avg: 18%), ROE 4.0% (avg: 22%), current ratio 1.96 (avg: 2.5).