ScanSource Profitability Analysis

SCSC Stock  USD 42.17  0.91  2.21%   
Based on the measurements of profitability obtained from ScanSource's financial statements, ScanSource is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in February. Profitability indicators assess ScanSource's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1993-03-31
Previous Quarter
20.1 M
Current Value
19.9 M
Quarterly Volatility
21.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, ScanSource's EV To Sales is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.03, whereas Days Sales Outstanding is forecasted to decline to 50.06. At present, ScanSource's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 13.6 M, whereas Accumulated Other Comprehensive Income is projected to grow to (97.8 M). At present, ScanSource's Operating Profit Margin is projected to increase slightly based on the last few years of reporting.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.15
Fairly Down
Very volatile
For ScanSource profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ScanSource to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ScanSource utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ScanSource's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ScanSource over time as well as its relative position and ranking within its peers.

ScanSource's Revenue Breakdown by Earning Segment

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For information on how to trade ScanSource Stock refer to our How to Trade ScanSource Stock guide.The next projected EPS of ScanSource is estimated to be 0.9905 with future projections ranging from a low of 0.87 to a high of 1.172. ScanSource's most recent 12-month trailing earnings per share (EPS TTM) is at 3.2. Please be aware that the consensus of earnings estimates for ScanSource is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
ScanSource is projected to generate 0.9905 in earnings per share on the 31st of March 2026. ScanSource earnings estimates show analyst consensus about projected ScanSource EPS (Earning Per Share). It derives the highest and the lowest estimates based on ScanSource's historical volatility. Many public companies, such as ScanSource, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

ScanSource Revenue Breakdown by Earning Segment

By analyzing ScanSource's earnings estimates, investors can diagnose different trends across ScanSource's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ScanSource. If investors know ScanSource will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ScanSource listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.29
Earnings Share
3.2
Revenue Per Share
131.162
Quarterly Revenue Growth
(0.05)
Return On Assets
0.0352
The market value of ScanSource is measured differently than its book value, which is the value of ScanSource that is recorded on the company's balance sheet. Investors also form their own opinion of ScanSource's value that differs from its market value or its book value, called intrinsic value, which is ScanSource's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ScanSource's market value can be influenced by many factors that don't directly affect ScanSource's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ScanSource's value and its price as these two are different measures arrived at by different means. Investors typically determine if ScanSource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ScanSource's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ScanSource Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ScanSource's current stock value. Our valuation model uses many indicators to compare ScanSource value to that of its competitors to determine the firm's financial worth.
ScanSource is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about  0.43  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for ScanSource is roughly  2.30 . At present, ScanSource's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ScanSource's earnings, one of the primary drivers of an investment's value.

ScanSource's Earnings Breakdown by Geography

ScanSource Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

ScanSource

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0811
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

ScanSource

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0352
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

ScanSource Return On Asset Comparison

ScanSource is currently under evaluation in return on asset category among its peers.

ScanSource Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ScanSource, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ScanSource will eventually generate negative long term returns. The profitability progress is the general direction of ScanSource's change in net profit over the period of time. It can combine multiple indicators of ScanSource, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-103 M-97.8 M
Operating Income98 M63.9 M
Net Income82.3 M41.2 M
Income Before Tax108.6 M64.7 M
Total Other Income Expense Net8.3 M8.7 M
Income Tax Expense26.3 M22.2 M
Net Income Applicable To Common Shares103.3 M108.4 M
Net Income From Continuing Ops64.4 M45.1 M
Non Operating Income Net Other6.6 M3.7 M
Interest Income12.9 M13.6 M
Net Interest Income2.9 M3.1 M
Change To Netincome14.4 M13.7 M
Net Income Per Share 2.75  2.88 
Income Quality 1.41  1.48 
Net Income Per E B T 0.68  0.57 

ScanSource Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ScanSource. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ScanSource position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ScanSource's important profitability drivers and their relationship over time.

ScanSource Profitability Trends

ScanSource profitability trend refers to the progression of profit or loss within a business. An upward trend means that ScanSource's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is ScanSource's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

ScanSource Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between ScanSource different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards ScanSource in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down ScanSource's future profitability.

ScanSource Earnings Estimation Breakdown

The calculation of ScanSource's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of ScanSource is estimated to be 0.9905 with the future projection ranging from a low of 0.87 to a high of 1.172. Please be aware that this consensus of annual earnings estimates for ScanSource is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.87
Lowest
Expected EPS
0.9905
1.17
Highest

ScanSource Earnings Projection Consensus

Suppose the current estimates of ScanSource's value are higher than the current market price of the ScanSource stock. In this case, investors may conclude that ScanSource is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and ScanSource's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
487.46%
0.0
0.9905
3.2

ScanSource Earnings History

Earnings estimate consensus by ScanSource analysts from Wall Street is used by the market to judge ScanSource's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only ScanSource's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

ScanSource Quarterly Gross Profit

107.47 Million

At present, ScanSource's Price Earnings Ratio is projected to increase based on the last few years of reporting. The current year's Net Income Applicable To Common Shares is expected to grow to about 108.4 M, whereas Common Stock Shares Outstanding is forecasted to decline to about 25.6 M.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ScanSource's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
40.5442.1743.80
Details
Intrinsic
Valuation
LowRealHigh
37.9547.1348.76
Details
4 Analysts
Consensus
LowTargetHigh
48.2353.0058.83
Details
Earnings
Estimates (0)
LowProjected EPSHigh
0.870.991.17
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of ScanSource assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards ScanSource. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving ScanSource's stock price in the short term.

ScanSource Earnings per Share Projection vs Actual

Actual Earning per Share of ScanSource refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering ScanSource predict the company's earnings will be in the future. The higher the earnings per share of ScanSource, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

ScanSource Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as ScanSource, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of ScanSource should always be considered in relation to other companies to make a more educated investment decision.

ScanSource Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact ScanSource's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
null
nullnullnullnull
2025-11-06
2025-09-300.91.060.1617 
2025-08-21
2025-06-300.931.020.09
2025-05-05
2025-03-310.7750.860.08510 
2025-02-04
2024-12-310.90670.85-0.0567
2024-11-07
2024-09-300.770.840.07
2024-08-20
2024-06-300.920.8-0.1213 
2024-05-07
2024-03-310.840.69-0.1517 
2024-02-06
2023-12-310.970.85-0.1212 
2023-11-09
2023-09-300.90.74-0.1617 
2023-08-22
2023-06-300.750.760.01
2023-05-09
2023-03-310.910.960.05
2023-02-07
2022-12-311.041.060.02
2022-11-08
2022-09-301.051.070.02
2022-08-23
2022-06-300.970.91-0.06
2022-05-10
2022-03-310.671.040.3755 
2022-02-08
2021-12-310.851.020.1720 
2021-11-09
2021-09-300.720.990.2737 
2021-08-24
2021-06-300.570.960.3968 
2021-05-10
2021-03-310.530.710.1833 
2021-02-02
2020-12-310.530.650.1222 
2020-11-09
2020-09-300.350.420.0720 
2020-08-31
2020-06-300.210.19-0.02
2020-05-11
2020-03-310.460.37-0.0919 
2020-02-04
2019-12-310.810.77-0.04
2019-11-12
2019-09-300.730.72-0.01
2019-08-20
2019-06-300.820.71-0.1113 
2019-05-09
2019-03-310.780.77-0.01
2019-02-05
2018-12-310.970.990.02
2018-11-06
2018-09-300.870.890.02
2018-08-28
2018-06-300.770.770.0
2018-05-08
2018-03-310.70.68-0.02
2018-02-06
2017-12-310.810.90.0911 
2017-11-06
2017-09-300.780.76-0.02
2017-08-29
2017-06-300.680.680.0
2017-05-09
2017-03-310.670.65-0.02
2017-02-07
2016-12-310.720.750.03
2016-11-07
2016-09-300.660.680.02
2016-08-29
2016-06-300.710.51-0.228 
2016-05-10
2016-03-310.650.64-0.01
2016-02-09
2015-12-310.740.880.1418 
2015-10-29
2015-09-300.560.680.1221 
2015-08-20
2015-06-300.580.660.0813 
2015-04-30
2015-03-310.560.580.02
2015-01-29
2014-12-310.660.680.02
2014-10-30
2014-09-300.610.750.1422 
2014-08-21
2014-06-300.590.60.01
2014-05-01
2014-03-310.540.590.05
2014-01-30
2013-12-310.650.64-0.01
2013-10-24
2013-09-300.580.690.1118 
2013-08-22
2013-06-300.610.710.116 
2013-04-25
2013-03-310.490.530.04
2013-01-24
2012-12-310.620.640.02
2012-10-25
2012-09-300.590.630.04
2012-08-16
2012-06-300.620.710.0914 
2012-04-26
2012-03-310.540.53-0.01
2012-01-26
2011-12-310.690.770.0811 
2011-10-27
2011-09-300.640.750.1117 
2011-08-18
2011-06-300.650.710.06
2011-04-28
2011-03-310.580.60.02
2011-01-27
2010-12-310.610.80.1931 
2010-10-28
2010-09-300.520.580.0611 
2010-08-19
2010-06-300.470.520.0510 
2010-04-22
2010-03-310.420.450.03
2010-01-28
2009-12-310.450.44-0.01
2009-10-22
2009-09-300.440.41-0.03
2009-08-20
2009-06-300.350.470.1234 
2009-04-23
2009-03-310.240.350.1145 
2009-01-22
2008-12-310.330.430.130 
2008-10-23
2008-09-300.460.470.01
2008-08-21
2008-06-300.470.540.0714 
2008-04-24
2008-03-310.480.42-0.0612 
2008-01-24
2007-12-310.480.590.1122 
2007-10-25
2007-09-300.480.560.0816 
2007-08-23
2007-06-300.440.480.04
2007-06-18
2007-03-310.410.450.04
2006-10-26
2006-09-300.40.440.0410 
2006-08-17
2006-06-300.390.460.0717 
2006-04-27
2006-03-310.340.360.02
2006-01-26
2005-12-310.390.36-0.03
2005-10-27
2005-09-300.350.360.01
2005-08-18
2005-06-300.340.370.03
2005-04-28
2005-03-310.320.320.0
2005-01-27
2004-12-310.340.350.01
2004-10-28
2004-09-300.330.340.01
2004-08-12
2004-06-300.310.350.0412 
2004-04-22
2004-03-310.260.320.0623 
2004-01-22
2003-12-310.280.290.01
2003-10-23
2003-09-300.230.30.0730 
2003-08-14
2003-06-300.20.250.0525 
2003-04-24
2003-03-310.180.180.0
2003-01-23
2002-12-310.220.230.01
2002-10-24
2002-09-300.220.240.02
2002-08-15
2002-06-300.20.210.01
2002-04-25
2002-03-310.180.20.0211 
2002-01-24
2001-12-310.160.160.0
2001-10-25
2001-09-300.180.180.0
2001-08-16
2001-06-300.170.180.01
2001-04-26
2001-03-310.160.170.01
2001-01-25
2000-12-310.160.160.0
2000-10-26
2000-09-300.140.160.0214 
2000-08-17
2000-06-300.130.210.0861 
2000-04-24
2000-03-310.120.130.01
2000-01-27
1999-12-310.110.120.01
1999-10-28
1999-09-300.10.120.0220 
1999-08-12
1999-06-300.090.10.0111 
1999-04-29
1999-03-310.080.090.0112 
1999-01-28
1998-12-310.070.080.0114 
1998-10-29
1998-09-300.070.070.0
1998-08-13
1998-06-300.060.070.0116 
1998-04-24
1998-03-310.060.060.0
1998-01-29
1997-12-310.060.060.0
1997-10-27
1997-09-300.050.060.0120 

Use ScanSource in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ScanSource position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ScanSource will appreciate offsetting losses from the drop in the long position's value.

ScanSource Pair Trading

ScanSource Pair Trading Analysis

The ability to find closely correlated positions to ScanSource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ScanSource when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ScanSource - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ScanSource to buy it.
The correlation of ScanSource is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ScanSource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ScanSource moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ScanSource can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ScanSource position

In addition to having ScanSource in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Rentals Thematic Idea Now

Rentals
Rentals Theme
Companies providing rental and leasing services to public and business. The Rentals theme has 36 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rentals Theme or any other thematic opportunities.
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When determining whether ScanSource offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ScanSource's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Scansource Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Scansource Stock:
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For information on how to trade ScanSource Stock refer to our How to Trade ScanSource Stock guide.
You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project ScanSource's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ScanSource at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ScanSource's income statement, its balance sheet, and the statement of cash flows.
Potential ScanSource investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ScanSource investors may work on each financial statement separately, they are all related. The changes in ScanSource's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ScanSource's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.