ScanSource Story

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SCSC -- USA Stock  

USD 19.03  0.14  0.74%

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. As many millenniums are excited about technology space, it is only fair to go over ScanSource. We will check if it is still possible for ScanSource to minimize net losses this year. Here I will also go over some basic indicators that ScanSource investors should consider in September.
Published over three weeks ago
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What are the odds of ScanSource slipping in September?
ScanSource is undervalued at 27.00 per share with modest projections ahead. ScanSource has performance score of 1 on a scale of 0 to 100. The entity has a beta of 0.1828, which indicates not very significant fluctuations relative to the market. Let's try to break down what ScanSource's beta means in this case. As returns on the market increase, ScanSource returns are expected to increase less than the market. However, during the bear market, the loss on holding ScanSource will be expected to be smaller as well. Although it is extremely important to respect ScanSource current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting ScanSource technical indicators, you can presently evaluate if the expected return of 0.0505% will be sustainable into the future. ScanSource right now has a risk of 2.93%. Please validate ScanSource treynor ratio, and the relationship between the standard deviation and downside variance to decide if ScanSource will be following its existing price patterns.

How important is ScanSource's Liquidity

ScanSource financial leverage refers to using borrowed capital as a funding source to finance ScanSource ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ScanSource financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ScanSource's total debt and its cash.

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

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

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.
 2019 2020 (projected)
Consolidated Income57.26 M49.91 M
Direct Expenses3.08 B2.81 B

Ownership Breakdown

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

Over 3 percent rise for ScanSource. What does it mean for investors?

Current expected short fall indicator falls down to -1.8. Possible price jump? 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 Final Take On ScanSource

Whereas other companies 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. The inconsistency in the assessment between current ScanSource valuation and our trade advice on ScanSource is due to the recent market swings and your selection of investing horizon. 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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