ScanSource Story

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SCSC -- USA Stock  

USD 18.89  0.41  2.12%

ScanSource Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 24,531.8. The current year Revenue Per Employee is expected to grow to about 1.9 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 103.9 M. ScanSource is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 31st of August 2020. While many fundamental traders are getting carried away by overanalyzing balance sheets and income statements, it is reasonable to go over ScanSource against its basic efficiency ratios. We will cover the possibilities of making ScanSource into a steady grower in September. ScanSource chance of financial distress is under 31 percent. Will ScanSource investors continue to buy in September?
Published over three weeks ago
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Are investors happy with ScanSource (NASDAQ:SCSC) basic indicators?
We consider ScanSource very steady. ScanSource owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0172, which indicates the firm had 0.0172% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for ScanSource, which you can use to evaluate future volatility of the company. Please validate ScanSource Risk Adjusted Performance of 0.0268, semi deviation of 3.45, and Coefficient Of Variation of 6511.75 to confirm if the risk estimate we provide is consistent with the expected return of 0.0505%.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include ScanSource income statement, its balance sheet, and the statement of cash flows. Potential ScanSource investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although ScanSource investors may use 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. The goal of ScanSource fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of ScanSource performance into the future periods or doing a reasonable stock valuation. The intrinsic value of ScanSource shares is the value that is considered the true value of the share. If the intrinsic value ScanSource is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares ScanSource. Please read more on our fundamental analysis page.

Are ScanSource Earnings Expected to grow?

The future earnings power of ScanSource involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of ScanSource factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. ScanSource stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of ScanSource expected earnings.

How ScanSource utilizes its cash?

To perform a cash flow analysis of ScanSource, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ScanSource is receiving and how much cash it distributes out in a given period. The ScanSource cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. ScanSource Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 182.03 Million

ScanSource Gross Profit

ScanSource Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ScanSource previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ScanSource Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Purchase by Michael Grainger of 2700 shares of ScanSource

Legal trades by ScanSource insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
ScanSource insider trading alert for perchase of common stock by Michael Grainger, the corporate stakeholder, on 16th of September 2020. This event was filed by Scansource Inc with SEC on 2020-09-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

There are few distinct groups of ScanSource stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of ScanSource is distributed among investors.

Ownership Allocation

ScanSource shows a total of twenty-five million three hundred fifty thousand outstanding shares. The majority of ScanSource outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in ScanSource to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in ScanSource. Please pay attention to any change in the institutional holdings of ScanSource as this could imply that something significant has changed or about to change at the company. Also note that roughly two hundred fifty-three thousand five hundred invesors are currently shorting ScanSource expressing very little confidence in its future performance.

Institutions
99.09%
Retail Investors-1.11
Insiders2.02
Institutions99.09

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ScanSource has an asset utilization ratio of 255.5 percent. This suggests that the company is making $2.56 for each dollar of assets. An increasing asset utilization means that ScanSource is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
1.2 B
Current Assets1.19 Billion73.83
Assets Non Current254.69 Million15.78
Goodwill139.68 Million8.65
Tax Assets27.98 Million1.73

Will ScanSource growth be feasible after the rise?

Current Market Risk Adjusted Performance is up to 0.03. Price may slip again. ScanSource shows above-average downside volatility for the selected time horizon. We advise investors to inspect ScanSource further and ensure that all market timing and asset allocation strategies are consistent with the estimation of ScanSource future alpha.

Our Conclusion on ScanSource

Whereas some firms within the electronics & computer distribution industry are still a little expensive, even after the recent corrections, ScanSource may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of ScanSource nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ScanSource.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of ScanSource. Please refer to our Terms of Use for any information regarding our disclosure principles.

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