Quality Investor

ScanSource, Inc.

Rank #305Capital ReturnWatchlistCompare with other stocks

SCSC · Nasdaq · Technology

ScanSource, Inc. (SCSC) — Rank #305 by gross profitability (GP/assets 0.23) · ROE 8.7% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · CIK 0000918965 · all metrics point-in-time as of the filing date.

About

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States, Brazil, and internationally.

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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 voice, video, communication platform integration, and contact center solutions; managed connectivity and wireless enablement solutions. This segment offers applications that have evolved from traditional uses, such as inventory control, materials handling, distribution, shipping and warehouse management, and healthcare applications. The Intelisys & Advisory segment offers connectivity and software-defined networking, CX (unified communications as a service and contact center as a service), cloud/data center, security, managed AI, and wireless and IOT. This segment helps channel sales partners service various end users, including businesses of all sizes. It 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.

Industry
Electronics & Computer Distribution
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

2,100

Industry

Electronics & Computer Distribution

Exchange

Nasdaq

11/12

Flags passed

SCSC fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Balance sheet deteriorating

    Net cash collapsed with receivables or inventory outpacing revenue

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.23
Return on equity
8.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.12
Current ratio
1.76×
Net cash
-$13.04M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.4%

Growth

2/2 pass
Revenue growth
6.1%
Piotroski F-Score
7 / 9
Share dilution
-9.0%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.23

Gross profitability (GP / assets)

0.23

Primary signal (Novy-Marx).

9th of 9 SIC 50 peers

Return on equity

8.7%

Gross margin

13.6%

9th of 9 SIC 50 peers

Revenue growth (YoY)

6.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-5.2%

Revenue CAGR (5Y)

0.5%

Earnings CAGR (3Y)

-4.2%

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 44% above net income

Free cash flow

$113.84M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

44.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Warning: Balance sheet deteriorating · net debt $13.04M, F-Score 7/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.12

9th of 9 SIC 50 peers (best = lowest)

Current ratio

1.76×

9th of 9 SIC 50 peers

Quick ratio

1.00×

Net cash

-$13.04M

Cash & equivalents minus total debt.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.7 / 5

Good
Share count trend(net buybacks)
-9.0%5/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-0.2%3/5 Good

Lifecycle Phase History

20212026
Value
Op. Leverage
Capital Return
Decline

Price History

SCSC+61.2% · +10.0% CAGRSPY+82.9% · +12.8% CAGR