ScanSource, Inc.

Valuation Analysis

About the Company

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and barcode, including mobile computing; barcode scanners and imagers, radio frequency identification devices, barcode printing and related services; point of sale systems and integrated pos software platforms; payment terminals, such as self-service kiosks, payment terminals and mobile payment devices; physical security comprising video surveillance and analytics, and video management software and access control; networking, such as switching, and routing and wireless products and software; communications, including vo

ScanSource, Inc. Stock at a Glance

ScanSource, Inc. (SCSC) is currently trading at $50.01 with a market capitalization of $1B. The trailing P/E ratio stands at 15.2x, with a forward P/E of 11.33x. The 52-week range spans from $33.76 to $50.43; the current price is 0.8% below the yearly high. Year-over-year revenue growth stands at +8.8%. The net profit margin stands at 2.38%.

💰 Dividend

ScanSource, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

3 analysts rate ScanSource, Inc. (SCSC) on consensus: None. The average price target is $54.67, implying +9.31% from the current price. Analyst price targets range from $43.00 to $71.00.

ScanSource, Inc.: The Investment Case in Detail

ScanSource, Inc. (SCSC) operates in the Technology — specifically Electronics & Computer Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

With a net margin of just 2.38%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

With a PEG ratio of 0.76, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 8.29x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 11.33x is meaningfully below the trailing 15.2x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 97.5% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (8.44%).

Trading Data

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