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Upturn AI Summary - About
ScanSource Inc(SCSC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SCSC
11/09/2026: SCSC (2-star) is a SELL. SELL for 3 days. Simulated Profits (-22.11%). Updated daily EoD!
ScanSource is a specialized technology distributor that is successfully transitioning from a traditional hardware-heavy model to one increasingly focused on high-margin recurring services and cloud connectivity. The company maintains a leading position in niche technology distribution, leveraging deep partner relationships to drive value. Its primary investment story hinges on the continued scaling of its service-oriented platform, which offers more predictable cash flows. However, the company faces risks from IT spending cyclicality, supplier concentration, and competition from larger global distributors. Given its lack of a dividend and exposure to hardware cycles, it may best suit value-oriented investors watching for successful execution in its service-led transformation.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | ScanSource provides exposure to digital transformation trends but operates in a mature, low-growth distribution industry. |
| Momentum investor | Mixed fit | The stock can exhibit trends based on management execution and channel demand, requiring positive signal confirmation. |
| Value investor | Strong fit | The company often trades at modest valuation multiples relative to earnings, offering potential for value-oriented investors. |
| Dividend investor | Weak fit | ScanSource does not pay a regular dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | While the business is established, exposure to cyclical IT spending and supplier concentration introduces notable volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | As a small-to-mid-cap stock in the tech sector, shares can react sharply to quarterly earnings and macro sentiment. |
| Valuation risk | Medium | While often moderately valued, changes in growth expectations for the service segment can lead to multiple compression. |
| Competition risk (Distributor consolidation) | High | Large global distributors possess significant economies of scale that challenge ScanSource's pricing power. |
| Business quality | Medium | The business model is transitioning to higher quality services, but remains tied to lower-margin hardware distribution. |
| Dividend income | Low / none | The absence of a dividend removes the income safety net for long-term holders. |
| Execution risk | Medium | Success depends on the ongoing ability to migrate partners to higher-margin recurring revenue models. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -21.79% | Avg. Invested days 39 | Today’s Advisory SELL |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 869.51M USD | Price to earnings Ratio 13.5 | 1Y Target Price 64.5 |
Price to earnings Ratio 13.5 | 1Y Target Price 64.5 | ||
Volume (30-day avg) 325.3K shares | Beta 1.26 | 52 Weeks Range 33.76 - 66.78 | Updated Date 11/08/2026 |
52 Weeks Range 33.76 - 66.78 | Updated Date 11/08/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.17 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Specialty Hardware | Barcode, POS, and security hardware sales. | Traditional volume-based business with thin margins. |
| Cloud & Services | Recurring commissions and managed services. | Higher-margin segment driving the company's long-term transformation. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-11-05 | When Before Market | Estimate 1.12 | Actual 0.86 |
Profitability
Profit Margin 1.96% | Operating Margin (TTM) 1.9% |
Management Effectiveness
Return on Assets (TTM) 3.02% | Return on Equity (TTM) 7.4% |
Valuation
Trailing PE 13.5 | Forward PE 8.72 | Enterprise Value 1.15B | Price to Sales(TTM) 0.25 |
Enterprise Value 1.15B | Price to Sales(TTM) 0.25 | ||
Enterprise Value to Revenue 0.33 | Enterprise Value to EBITDA 9.58 | Shares Outstanding 20.33M | Shares Floating 19.79M |
Shares Outstanding 20.33M | Shares Floating 19.79M | ||
Percent Insiders 2.51 | Percent Institutions 108.63 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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