SCSC
ScanSource, Inc.
SCSC's fundamentals are mixed: revenue grew 15%, but free cash flow fell 41%. At 14x earnings, it's trading in line with its usual 13x. Analysts expect earnings growth.
SCSC Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Stable | |
| Under pressure | |
| Healthy |
SCSC's revenue and balance sheet are currently healthy, and its profitability is stable, but its cash flow is under pressure.
SCSC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 8.7x | $27.69 | -37% |
| Forward | 8.9x | $44.26 | — |
| Fair | 13x | $42.03 | -5% |
| Current | 14x | $44.26 | — |
| Expensive | 17x | $52.71 | +19% |
Historical ranges are pointers, not guarantees.
SCSC's PE is in its fair range at 14x. If earnings grow as analysts expect, today's price would be 8.9x next year's earnings, in its cheap range.
SCSC Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Growth | |
| Strong growth | |
| Stable | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for SCSC, with profitability holding steady.
SCSC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.00 | +58% |
| Q3 2026 | $3.17 | -0.9% |
| Q2 2026 | $3.64 | +21% |
| Q1 2026 | $3.29 | +18% |
| Q4 2025 | $3.25 | +27% |
| Q3 2025 | $3.20 | +1.9% |
| Q2 2025 | $3.00 | -2% |
| Q1 2025 | $2.79 | -12% |
| Q4 2024 | $2.55 | -27% |
SCSC earned $3.17 per share over the past year, about the same as the year before.
SCSC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $962.3M | +30% |
| Q2 2026 | $953.1M | +17% |
| Q1 2026 | $766.8M | +8.8% |
| Q4 2025 | $766.5M | +2.5% |
| Q3 2025 | $739.7M | -4.6% |
| Q2 2025 | $812.9M | +8.9% |
| Q1 2025 | $704.8M | -6.3% |
| Q4 2024 | $747.5M | -16% |
SCSC's revenue has grown year over year for four quarters in a row: $962M last quarter, up 30% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 1.3% | -2.2 points |
| Q2 2026 | 3.3% | 0 points |
| Q1 2026 | 3% | -0.1 points |
| Q4 2025 | 2.3% | -0.1 points |
| Q3 2025 | 3.5% | +1.2 points |
| Q2 2025 | 3.3% | +0.4 points |
| Q1 2025 | 3.2% | +0.8 points |
| Q4 2024 | 2.5% | -0.6 points |
SCSC's operating margin was 1.3% last quarter, down 2.2 points from the same quarter a year ago.
SCSC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | -$44.1M | -312% |
| Q2 2026 | -$4.8M | -193% |
| Q1 2026 | $69M | +6.7% |
| Q4 2025 | $28.9M | +$37M |
| Q3 2025 | $20.8M | -51% |
| Q2 2025 | $5.1M | -90% |
| Q1 2025 | $64.6M | -59% |
| Q4 2024 | -$8.2M | -113% |
SCSC usually generates cash, though not every quarter: the latest was −$44M, but it generated $49M over the past year.
SCSC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -4.6% | -1M shares |
| 1 year | -7.7% | -1.7M shares |
| 3 years | -18% | -4.5M shares |
| 5 years | -20% | -5M shares |
| Available history | -18% | -4.7M shares |
SCSC has 21M diluted shares, down 7.7% from a year ago, with $81M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $4.8M |
| Q2 2026 | $26.5M |
| Q1 2026 | $32.7M |
| Q4 2025 | $17.4M |
| Q3 2025 | $21.3M |
| Q2 2025 | $25.3M |
| Q1 2025 | $28.9M |
| Q4 2024 | $24.2M |
SCSC spent $81M buying back its own shares over the past year, down 18% from the year before.
SCSC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.5x | Very low |
| Q2 2026 | 0.1x | Very low |
| Q1 2026 | -0.2x | Net Cash |
| Q4 2025 | 0.2x | Very low |
| Q3 2025 | 0.1x | Very low |
| Q2 2025 | 0.1x | Very low |
| Q1 2025 | -0.1x | Net Cash |
| Q4 2024 | 0.3x | Very low |
SCSC's net debt is less than a year of its operating earnings (EBITDA).
SCSC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 37.4 | Neutral |
| Stochastic | 24.2 | Neutral |
SCSC's weekly RSI is 37 (neutral) and its Stochastic is 24 (neutral).
SCSC PE vs Technology Sector
| Metric | SCSC | Sector median | Relative |
|---|---|---|---|
| PE | 14x | 28x | 50% below |
| PE % | 53 | 35 | 18 pts above |
SCSC is trading at 14x earnings, a 50% discount to the Technology sector's median of 28x.
SCSC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $55.9 | 21% below |
| 20 week MA | $55.5 | 20% below |
| 50 week MA | $46.8 | 5.4% below |
| 100 week MA | $43.8 | 1.1% above |
| 200 week MA | $41.0 | 7.9% above |
SCSC has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 7.9% above its 200-week average.
SCSC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $36.6 | $26.2 | -28% |
| 2021 | $26.2 | $34.6 | +32% |
| 2022 | $34.6 | $29.1 | -16% |
| 2023 | $29.1 | $39.6 | +36% |
| 2024 | $39.6 | $47.8 | +21% |
| 2025 | $47.8 | $39.7 | -17% |
| 2026 YTD | $39.7 | $44.3 | +11% |
SCSC has finished lower in three of the last six years. It's up 11% so far in 2026.