Lumida
/SCSC
⌘K
Scansource Inc

Scansource Inc

SCSC
$58.19USD↑+4.79%+2.66 today

MARKET CAP

1.2B

P/E (TTM)

17.7x

FWD P/E

—

DAY RANGE

$56 – $59

52W RANGE

$34
$67

AI Summary

Stalk
Buy NowMedium

The stock remains in a strong medium-term uptrend as indicated by Stage 2 structural patterns and supportive EMAs. Price is consolidating above the rising 9-, 20-, and 50-period moving averages with no sign of exhaustion, offering an attractive buy setup on continued demand. Momentum metrics (RSI and Options Score) are healthy but not extreme, supporting continued upside. Key risk is a failure below the 50-period SMA, which would invalidate the bullish posture.

  • ↑Earnings yield at 2.92% with book-to-price of 1.25 suggests undervaluation
  • ↑FY2026 free cash flow of $114M and 124% conversion fuel buybacks
  • ↓Revenue growth momentum weakens as large deals fragment timing
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor specializing in integrated technology solutions focusing on cloud computing, cybersecurity, and communication sectors. The company caters mainly to value-added resellers (VARs), assisting them in navigating complex technology decisions while enhancing their service capabilities. ScanSource is currently focused on strategic growth through acquisitions, exemplified by its recent purchase of MicroAge, aiming to broaden its total addressable market and reinforce its technological offerings amid competitive pressures.

Bull says

  • ↑Earnings yield at 2.92% with book-to-price of 1.25 suggests undervaluation
  • ↑FY2026 free cash flow of $114M and 124% conversion fuel buybacks
  • ↑Share repurchases of $98M underscore strong capital allocation
  • ↑MicroAge acquisition expands TAM into cloud and cybersecurity services
  • ↑Management guides 6–10% organic revenue growth on robust demand
  • ↑Recurring revenues at 34% of gross profit enhance predictability

Bear says

  • ↓Revenue growth momentum weakens as large deals fragment timing
  • ↓Elevated price volatility risk may deter investors
  • ↓Consensus earnings revisions trending downward undermine outlook
  • ↓MicroAge integration risks channel conflicts and execution challenges
  • ↓Macro headwinds could restrict tech spending and growth
  • ↓Competitive pricing pressures compress profit margins

Investment themes with SCSC

Buybacks↓ -0.29%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 08-20-2026neutral

Transcript signals

Bull points

  • We are excited about the growth opportunities ahead for our channel partners and the expanding role of technology distribution.
  • We believe end users face increasing complexity when making technology investment decisions.
  • end users are looking to the indirect channel for their technology solutions

Bear points

  • adjusted EBITDA for the segment declined 4% due to increasing investments in SG&A to drive future billings growth and expand our technical capabilities in emerging technologies like AI.
  • Full-year net sales totaled just over $3 billion, a year-over-year decline of 6.7%
  • sequentially the revenue is down in that segment, which is a first.
Read full transcript analysis ›