ScanSource (SCSC) AI Stock Analysis

• Market Cap: $939.94M
• Dividend Yield: N/A
• Average Volume (3M): 207.03K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.32
• Revenue Growth: -6.72%
• EPS Growth: -1.14%
• Country: US
• Employees: 2,300
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.02
• Shares Outstanding: 21,884,508
• 10 Day Avg. Volume: 138,738
• 30 Day Avg. Volume: 207,027
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 7.37
• 1Y Price Target: $43.00
• Price Target Upside: 1.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $46.00 ▲(8.64% Upside)

ScanSource's overall stock score reflects solid financial performance and a reasonable valuation, but technical indicators suggest potential short-term weakness. The company's strategic initiatives and strong quarterly results are positive, but challenges in certain segments and macroeconomic uncertainties weigh on the outlook.

ScanSource Business Overview & Revenue Model

Company Description

ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, intrusion-related, and wireless and networking infrastructure products. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government. The company serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.

How the Company Makes Money

ScanSource generates revenue primarily through the distribution of technology products and solutions. Its revenue model is centered on purchasing products from manufacturers at wholesale prices and then reselling them to resellers and end-users at a markup. Key revenue streams include sales of hardware and accessories, software solutions, and related services such as training and technical support. The company also benefits from strong partnerships with leading manufacturers, which allows it to offer a diverse product portfolio and leverage joint marketing initiatives. Additionally, ScanSource's focus on value-added services, such as logistics and integration support, enhances its offering and contributes to recurring revenue streams, positioning it for sustainable growth in the technology distribution market.

ScanSource Financial Statement Overview

Summary

ScanSource exhibits a solid financial position with consistent revenue growth and stable profitability. The company has effectively managed its leverage, resulting in a strong balance sheet. However, cash flow management presents some challenges, particularly in terms of free cash flow growth. Continued focus on operational efficiency and cash conversion will be crucial for sustaining financial health.

Income Statement

ScanSource has demonstrated consistent revenue growth over the years, with a notable improvement in gross profit margin from 11.13% in 2021 to 13.44% in 2025. The net profit margin has remained relatively stable, indicating effective cost management. However, the EBIT and EBITDA margins have shown slight fluctuations, suggesting some variability in operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, which has decreased from 0.37 in 2023 to 0.16 in 2025, indicating improved leverage management. Return on equity has been stable, reflecting consistent profitability. The equity ratio is strong, suggesting a solid capital structure, but there is room for improvement in asset utilization.

Cash Flow

ScanSource's cash flow performance has been mixed, with a significant decline in free cash flow growth in 2025. The operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains robust, suggesting effective cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.04B	3.04B	3.26B	3.79B	3.53B	3.15B
Gross Profit	408.65M	408.65M	399.05M	449.24M	426.52M	350.72M
EBITDA	132.58M	132.60M	140.91M	170.29M	155.06M	97.98M
Net Income	71.55M	71.55M	77.06M	89.81M	88.80M	45.39M
Balance Sheet
Total Assets	1.79B	1.79B	1.78B	2.07B	1.94B	1.67B
Cash, Cash Equivalents and Short-Term Investments	126.16M	126.16M	185.46M	36.18M	37.99M	62.72M
Total Debt	147.11M	147.11M	153.96M	334.26M	271.17M	143.17M
Total Liabilities	879.20M	879.20M	854.78M	1.16B	1.13B	940.49M
Stockholders Equity	906.41M	906.41M	924.25M	905.30M	806.53M	731.19M
Cash Flow
Free Cash Flow	104.06M	104.06M	363.09M	-45.75M	-131.20M	138.58M
Operating Cash Flow	112.35M	112.35M	371.65M	-35.77M	-124.35M	140.94M
Investing Cash Flow	-62.39M	-62.39M	9.04M	-8.26M	-3.72M	31.93M
Financing Cash Flow	-110.91M	-110.91M	-227.77M	39.53M	108.11M	-148.32M

ScanSource Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCSC, the sentiment is Neutral. The current price of 42.34 is below the 20-day moving average (MA) of 42.66, below the 50-day MA of 43.43, and above the 200-day MA of 40.34, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCSC.

ScanSource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	76 Outperform	$12.62B	16.82	9.23%	1.16%	6.95%	19.19%
CNXN	74 Outperform	$1.58B	18.91	9.78%	0.88%	4.94%	-1.79%
ARW	70 Outperform	$6.46B	13.57	7.74%	―	-3.95%	-16.72%
SCSC	66 Neutral	$939.94M	14.07	7.82%	―	-6.72%	-1.14%
AVT	65 Neutral	$4.24B	18.98	4.83%	2.57%	-6.55%	-49.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	60 Neutral	$3.45B	26.12	8.67%	―	-7.61%	-50.01%

ScanSource Corporate Events

ScanSource Shareholders Approve 2024 Incentive Plan and Directors

At its annual meeting, ScanSource, Inc. received shareholder approval for its 2024 Omnibus Incentive Compensation Plan, which replaces the 2021 Plan and includes various stock-based awards for employees, officers, and directors. The approval signifies continuity in the company’s incentive structure and reflects shareholder support for the proposed compensation plans and the election of directors, as well as the ratification of Grant Thornton LLP as independent auditors for fiscal 2025.