ScanSource Inc. Common Stock (SCSC)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses I can understand and buy at a sensible price. ScanSource is a technology distributor focused on barcode, mobility, point-of-sale, payments, and advisory services, with 2,100 employees. Distribution is a tough game: thin margins, limited pricing power, and constant competition. The filed numbers show why. In FY2026, ended 2026-06-30, revenue was $3.2B, net income $78.9M, and diluted EPS $3.64. In FY2025, ended 2025-06-30, revenue was $3.0B, net income $71.5M, and EPS $3.00. So annual profits improved, but the supplied profit-growth figure is -3.28%, and filed quarterly results are modest: in fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $766.8M, net income $16.9M, and EPS $0.78. Financial health is decent. Debt-to-equity is 0.12, trailing free cash flow is $113.8M, and the FCF yield is 9.1%. But returns are modest: ROE 8.68% and ROCE 3.49%. Piotroski is 4/9 and Altman is 2.42. The Lynch classification is STALWART because profits grew 48.8% a year over five years while revenue grew only 0.5%; that suggests margin or mix improvement, not rapid expansion. At the 2026-10-13 close of $61.97, FairStock calculations show a P/E of 17.02, P/B of 1.37, EV/EBITDA of 9.49, and a Graham Number of $60.82, leaving a -1.89% margin of safety. The FairStock Score is 57/100. This is not a bargain-bin Graham net-net or a wide-moat compounder. It is a fairly priced, cash-generative distributor with low debt and limited growth. I would want evidence that recent profit pressure reverses before calling it clearly cheap.

In plain English: ScanSource sells and supports technology products such as barcode scanners, payment systems, and related advisory services, mainly through distribution. The company has little debt and steady cash flow, but it earns thin profits and its recent profit growth has been uneven. At $61.97, the stock looks roughly fair to slightly full compared with the company's earnings, book value, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer