ScanSource, Inc. (SCSC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ScanSource, Inc. (SCSC) trades at $51.12 with AI Score 79/100 (Grade A). ScanSource, Inc. is a technology distributor operating in the United States, Canada, and internationally. Market cap: $1.04B, Sector: Technology.
Price live · AI analysis from May 10, 2026Analyst Coverage for SCSC: SCSC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SCSC against Technology peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
SCSC: 1/1 perspectives are bullish.
How is this calculated? →ScanSource, Inc. (SCSC) Technology Profile & Competitive Position
ScanSource, Inc. distributes technology products and solutions, focusing on specialty technology and modern communications & cloud. The company serves diverse industries, including retail, healthcare, and government, providing solutions like mobile computing, data capture, and unified communications. With a market capitalization of $1.04B, ScanSource operates in a competitive technology distribution landscape.
What Is the Investment Thesis for SCSC?
ScanSource, Inc. presents a compelling investment case based on its strategic positioning in the technology distribution market. With a P/E ratio of 12.2 and a market capitalization of $1.04B, the company demonstrates a stable financial profile. Growth catalysts include the increasing demand for cybersecurity solutions and the expansion of cloud-based communication services. The company's ability to serve diverse industries, from retail to healthcare, provides a resilient revenue base. However, potential risks include competitive pressures in the technology distribution sector and the impact of economic cycles on technology spending. The company's beta of 1.25 indicates higher volatility compared to the market, which investors may want to evaluate. The company's gross margin of 13.5% and profit margin of 2.4% highlight areas for potential improvement in operational efficiency.
Based on FMP financials and quantitative analysis
SCSC Key Highlights
- Market capitalization of $1.04B indicates a mid-sized player in the technology distribution market.
- P/E ratio of 12.2 suggests a potentially undervalued stock compared to industry peers.
- Gross margin of 13.5% reflects the company's ability to generate revenue after accounting for the cost of goods sold.
- Profit margin of 2.4% indicates the percentage of revenue that translates into profit after all expenses.
- Beta of 1.25 suggests the stock is more volatile than the market, potentially offering higher returns but also higher risk.
Who Are SCSC's Competitors?
SCSC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVD American Vanguard Corporation | $3.16 | +0.00% | $90.39M | 35 |
| SNX TD SYNNEX Corporation distributes technology products and | $238.80 | -2.39% | $19.10B | 54 |
| INGR Ingredion Incorporated | $97.79 | +0.17% | $6.17B | 77 |
| EACO EACO Corporation | $100.00 | +16.27% | $486.16M | 54 |
| SPRS Surge Components, Inc. | $3.69 | +1.86% | $21.09M | 51 |
| RXEEY Rexel S.A. | $43.90 | +1.54% | $12.91B | 51 |
| RXLSF Rexel S.A. | $43.00 | +2.94% | $12.62B | 51 |
| ARW Arrow Electronics, Inc. | $197.82 | +0.17% | $10.12B | 49 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SCSC's Key Strengths?
- Diversified product portfolio across specialty technology and modern communications.
- Established distribution network and vendor relationships.
- Expertise in serving diverse vertical markets.
- Value-added services enhance customer loyalty.
What Are SCSC's Weaknesses?
- Relatively low profit margin compared to industry peers.
- Dependence on technology vendors for product supply.
- Exposure to economic cycles and technology spending patterns.
- Higher beta indicates increased stock volatility.
What Could Drive SCSC Stock Higher?
- Increasing demand for cybersecurity solutions driving revenue growth.
- Expansion of cloud-based communication services boosting market share.
- Potential strategic acquisitions to expand product portfolio (timeline: 2026-2027).
- Enhanced focus on vertical markets driving customer satisfaction and retention.
- Penetration of emerging markets increasing global presence.
What Are the Key Risks for SCSC?
- Intense competition from larger technology distributors impacting market share.
- Rapid technological advancements rendering existing products obsolete.
- Economic downturns reducing technology spending and impacting revenue.
- Dependence on technology vendors for product supply creating potential disruptions.
- Supply chain disruptions affecting product availability and pricing.
What Are the Growth Opportunities for SCSC?
- Expansion in Cybersecurity Solutions: The increasing frequency and sophistication of cyber threats are driving demand for cybersecurity solutions. ScanSource can capitalize on this trend by expanding its portfolio of cybersecurity products and services. The global cybersecurity market is projected to reach $300 billion by 2027, offering a substantial growth opportunity for ScanSource. Timeline: Ongoing, with continuous product and service enhancements.
- Growth in Cloud-Based Communication Services: The shift towards remote work and digital transformation is driving demand for cloud-based communication services. ScanSource can leverage its Modern Communications & Cloud segment to offer comprehensive unified communications and collaboration solutions. The global unified communications market is expected to reach $75 billion by 2028. Timeline: Ongoing, with continuous service enhancements and partnerships.
- Penetration of Emerging Markets: Expanding into emerging markets presents a significant growth opportunity for ScanSource. These markets are experiencing rapid technological adoption and increasing demand for technology solutions. ScanSource can leverage its expertise in specialty technology solutions and modern communications & cloud to establish a presence in these markets. Timeline: 2027-2030, with phased market entry strategies.
- Strategic Acquisitions: Strategic acquisitions can enable ScanSource to expand its product portfolio, enter new markets, and enhance its competitive position. Acquiring companies with complementary technologies and customer bases can accelerate growth and create synergies. Timeline: Ongoing, with continuous evaluation of potential acquisition targets.
- Enhanced Focus on Vertical Markets: Deepening its focus on specific vertical markets, such as healthcare and education, can enable ScanSource to tailor its solutions to meet the unique needs of these industries. This targeted approach can enhance customer satisfaction and drive revenue growth. Timeline: Ongoing, with continuous market analysis and solution customization.
What Opportunities Does SCSC Have?
- Expansion in cybersecurity solutions and cloud-based communication services.
- Penetration of emerging markets with increasing technology adoption.
- Strategic acquisitions to expand product portfolio and market reach.
- Enhanced focus on specific vertical markets with tailored solutions.
What Threats Does SCSC Face?
- Intense competition from larger technology distributors.
- Rapid technological advancements and changing customer demands.
- Potential disruptions from new entrants and alternative distribution models.
- Economic downturns and reduced technology spending.
What Are SCSC's Competitive Advantages?
- Established distribution network and relationships with technology vendors.
- Broad product portfolio spanning specialty technology solutions and modern communications & cloud.
- Expertise in serving diverse vertical markets with tailored solutions.
- Value-added services that enhance customer loyalty and retention.
What Does SCSC Do?
ScanSource, Inc., incorporated in 1992 and headquartered in Greenville, South Carolina, is a technology distributor operating across the United States, Canada, and internationally. The company functions through two primary segments: Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment offers a range of products including enterprise mobile computing, data capture, barcode printing, point of sale (POS) systems, payment solutions, networking equipment, electronic physical security, and cybersecurity technologies. These solutions cater to industries requiring efficient data management and security, such as retail, distribution, and healthcare. The Modern Communications & Cloud segment focuses on communications technologies and services, providing voice, video conferencing, wireless, data networking, cable, unified communications and collaboration, cloud services, and IP networks. This segment serves various vertical markets, including education, healthcare, and government, enabling them to enhance their communication infrastructure and adopt modern cloud-based solutions. ScanSource's evolution has been marked by its ability to adapt to changing technology trends and customer needs, positioning itself as a key intermediary between technology vendors and end-users. The company's broad portfolio and geographic reach allow it to serve a diverse customer base, making it a significant player in the technology distribution market.
What Products and Services Does SCSC Offer?
- Distributes technology products and solutions.
- Operates through Specialty Technology Solutions and Modern Communications & Cloud segments.
- Provides enterprise mobile computing and data capture solutions.
- Offers point of sale (POS) and payment solutions.
- Distributes networking and electronic physical security products.
- Provides voice, video conferencing, and unified communications solutions.
- Offers cloud services and IP networks.
How Does SCSC Make Money?
- Generates revenue through the sale of technology products and solutions to resellers and integrators.
- Operates as a distributor, connecting technology vendors with end-users.
- Provides value-added services such as training, support, and configuration.
- Focuses on building strong relationships with both vendors and customers.
What Industry Does SCSC Operate In?
ScanSource, Inc. operates within the technology distribution industry, which is characterized by rapid technological advancements and evolving customer demands. The industry is experiencing growth driven by the increasing adoption of cloud computing, cybersecurity solutions, and mobile technologies. Competition is intense, with players like Ingram Micro and Tech Data also vying for market share. ScanSource differentiates itself through its focus on specialty technology solutions and modern communications & cloud, catering to specific vertical markets. The global technology distribution market is projected to reach significant growth in the coming years, presenting opportunities for ScanSource to expand its market presence.
Who Are SCSC's Key Customers?
- Resellers and integrators who serve end-users in various industries.
- Businesses in manufacturing, warehouse and distribution, retail, and e-commerce.
- Organizations in hospitality, transportation and logistics, government, education, and healthcare.
How ScanSource, Inc. Is Valued
ScanSource, Inc. carries a market capitalization of $1.04B, placing it in the small-cap category. Relative to its peer group, SCSC's quantitative score of 79/100 is above the peer average of 54/100.
ROE 8%Key Financial Metrics
Return on equity for ScanSource, Inc. stands at 8.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. SCSC trades at a trailing price-to-earnings ratio of 12.18, below the Technology sector average of ~38x. Its free cash flow yield is 12.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.86 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.8%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
ScanSource, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.80 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project ScanSource, Inc. revenue of about $3.09B for fiscal 2026, with EPS near $3.94.
SCSC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future prospects, indicating that executives believe in strong performance ahead.
- Community sentiment has shifted positively as discussions around new product launches have gained traction, boosting investor enthusiasm.
- The company's strategic partnerships in emerging tech sectors are being viewed favorably, as they position ScanSource for growth in a competitive landscape.
- Market perception has improved due to effective management communication, highlighting a clear vision and strategic direction that resonates with investors.
Bear Case
- Some analysts express concerns about potential supply chain disruptions impacting operational efficiency, raising doubts about short-term performance.
- Negative community chatter has emerged regarding competition in the tech distribution space, leading to fears of market share erosion.
- Recent earnings calls revealed challenges in meeting customer demand, which could hinder revenue growth and impact investor confidence.
- Market volatility has created a cautious atmosphere, with many investors wary of potential macroeconomic headwinds affecting overall tech sector performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · January 2026
SCSC Latest News
No recent news available for SCSC.
SCSC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCSC.
Price Targets
Wall Street price target analysis for SCSC.
SCSC MoonshotScore
What does this score mean?
The MoonshotScore rates SCSC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Technology DistributorsLeadership: Michael L. Baur
CEO
Michael L. Baur serves as the CEO of ScanSource, Inc., bringing extensive experience in the technology distribution industry. His career includes leadership roles in sales, marketing, and operations, providing him with a comprehensive understanding of the business. Baur's background encompasses strategic planning, business development, and customer relationship management. He is known for his focus on driving growth and innovation within the organization. His leadership is pivotal in guiding ScanSource through the evolving technology landscape and ensuring its continued success.
Track Record: Under Michael L. Baur's leadership, ScanSource has focused on expanding its presence in key technology segments, such as cybersecurity and cloud services. He has overseen strategic acquisitions aimed at enhancing the company's product portfolio and market reach. Baur has also emphasized building strong relationships with both vendors and customers, fostering a collaborative ecosystem. His tenure has been marked by a commitment to innovation and operational efficiency.
Common Questions About SCSC (Technology)
What does ScanSource, Inc. do?
ScanSource, Inc. operates as a technology distributor, connecting technology vendors with resellers and integrators who serve end-users across various industries. The company's two main segments, Specialty Technology Solutions and Modern Communications & Cloud, provide a broad range of products and services. These include enterprise mobile computing, data capture, point of sale (POS) systems, cybersecurity solutions, voice, video conferencing, and cloud services. ScanSource's business model focuses on building strong relationships with both vendors and customers, offering value-added services such as training, support, and configuration to enhance customer loyalty and retention.
What do analysts say about SCSC stock?
Analyst consensus on ScanSource, Inc. (SCSC) reflects a cautiously optimistic outlook, considering its position in the technology distribution market. Key valuation metrics, such as the P/E ratio of 12.2, suggest a potentially undervalued stock compared to industry peers. Growth considerations include the company's expansion in cybersecurity and cloud services, as well as its strategic focus on vertical markets. However, analysts also note potential risks, such as intense competition and economic cycles. Overall, the consensus points to a stable financial profile with opportunities for growth, but investors should carefully weigh the risks.
What are the main risks for SCSC?
ScanSource, Inc. faces several key risks inherent to its position in the technology distribution industry. Intense competition from larger distributors, such as Avnet and Synnex, could impact market share and profitability. Rapid technological advancements may render existing products obsolete, requiring continuous investment in new technologies. Economic downturns could reduce technology spending, affecting revenue and earnings. Dependence on technology vendors for product supply creates potential disruptions. Supply chain disruptions could also affect product availability and pricing, impacting customer satisfaction and financial performance. These risks require careful monitoring and proactive mitigation strategies.
What are the key factors to evaluate for SCSC?
ScanSource, Inc. (SCSC) holds an AI score of 79/100 (high). P/E: 12.2x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does SCSC data refresh on this page?
SCSC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven SCSC's recent stock price performance?
ScanSource, Inc. (SCSC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified product portfolio across specialty technology and modern communications. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SCSC overvalued or undervalued right now?
ScanSource, Inc. (SCSC) trades at 12.2x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying SCSC?
Before investing in ScanSource, Inc. (SCSC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on publicly available information.
- Analyst opinions are based on general consensus and may vary.
- Growth opportunities and risks are subject to market conditions and company performance.