ScanSource, Inc.

ScanSource distributes technology products and solutions globally through two segments: Specialty Technology Solutions and Modern Communications & Cloud. The Specialty segment offers a range of solutions for enterprise mobile computing, data capture, POS, and other technologies. It also provides electronic physical security products, networking products, software as a service, and hardware rental services. The Modern segment focuses on communications technologies and services, including voice, video conferencing, wireless, data networking, cybersecurity, and cloud services. ScanSource serves various industries, including manufacturing, retail, healthcare, government, education, and hospitality.

Overview

Sector

Electronics & Computer Distribution

Target Price

89.2 USD

Current Price

42.0 USD

Potential

113%

Strengths

With an appreciation Potential of 113.03%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (13.18) is lower than the sector mean (27.42).
Price to book ratio (1.10) is lower than the sector mean (1.45).
The company has low debt. Net Debt to EBITDA Ratio is -0.32 and it is lower than the sector mean.
The company has high returns. ROIC (34.79%) is higher than the sector mean (18.05%).
EV/EBITDA (7.43) is lower than the sector mean (16.74).
EV/EBIT (8.63) is lower than the sector mean.
Price to free cash flow (2.80) is lower than the sector mean.

Weaknesses

EBITDA Margin (4.02%) appears relatively low.

Key Financial Data

Indicator	Value
PER	13.2
EV/EBITDA	7.4
Price/Free Cash Flow'	2.8
ROIC	34.8%
Net Debt/EBITDA	-0.3