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Upturn AI SWOT - About
SCSC 
ScanSource Inc (SCSC)
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Upturn Advisory Summary
07/02/2025: SCSC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $50
1 Year Target Price $50
| 3 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -11.95% | Avg. Invested days 34 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/02/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 958.51M USD | Price to earnings Ratio 15.26 | 1Y Target Price 50 |
Price to earnings Ratio 15.26 | 1Y Target Price 50 | ||
Volume (30-day avg) 4 | Beta 1.39 | 52 Weeks Range 28.75 - 53.90 | Updated Date 07/2/2025 |
52 Weeks Range 28.75 - 53.90 | Updated Date 07/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.78 |
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 - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.27% | Operating Margin (TTM) 3.33% |
Management Effectiveness
Return on Assets (TTM) 3.22% | Return on Equity (TTM) 7.32% |
Valuation
Trailing PE 15.26 | Forward PE 11.26 | Enterprise Value 936233414 | Price to Sales(TTM) 0.32 |
Enterprise Value 936233414 | Price to Sales(TTM) 0.32 | ||
Enterprise Value to Revenue 0.31 | Enterprise Value to EBITDA 7.34 | Shares Outstanding 22595600 | Shares Floating 20638828 |
Shares Outstanding 22595600 | Shares Floating 20638828 | ||
Percent Insiders 8.56 | Percent Institutions 105.31 |
Upturn AI SWOT
ScanSource Inc
Company Overview
History and Background
ScanSource, Inc. was founded in 1992 and has grown from a regional distributor of bar code scanners to a global provider of technology products and solutions. Initially focused on automatic identification and data capture (AIDC) technologies, it expanded into networking, communications, and other IT infrastructure solutions through organic growth and strategic acquisitions.
Core Business Areas
- Modern Workplace & Collaboration: Focuses on solutions for unified communications, collaboration, and modern workplace technologies, including video conferencing, cloud communications, and related hardware and software. This segment supports businesses transitioning to remote and hybrid work environments.
- Networking & Security: This segment encompasses network infrastructure, cybersecurity solutions, and related services. It caters to businesses seeking to enhance their network performance, protect data, and secure their IT environment.
- Automatic Identification and Data Capture (AIDC): This encompasses barcode scanners, mobile computers, and RFID solutions for retail, healthcare, and supply chain applications. This is the original and still relevant offering.
Leadership and Structure
The leadership team includes the CEO, CFO, and other key executives overseeing different business units and functional areas. The organizational structure is typically hierarchical, with regional and product-specific teams reporting to senior management.
Top Products and Market Share
Key Offerings
- Unified Communications Solutions: ScanSource offers a range of unified communications solutions, including VoIP phones, video conferencing systems, and collaboration software. Market share data varies by specific product category and region, and are highly fragmented. Major competitors include larger distributors such as Ingram Micro (IMDG) and Tech Data (SNX, now TD SYNNEX).
- Networking Equipment: ScanSource distributes networking equipment from leading vendors such as Cisco and Juniper Networks. The networking equipment market is highly competitive, with significant market share held by direct sales and other distributors. Competitors include Ingram Micro (IMDG) and TD SYNNEX (SNX).
- Barcode Scanners and Mobile Computers: ScanSource distributes barcode scanners and mobile computers used in retail, healthcare, and logistics. Major competitors include BlueStar and other specialized AIDC distributors.
Market Dynamics
Industry Overview
The technology distribution industry is characterized by consolidation, increasing specialization, and a shift towards cloud-based solutions. Distributors like ScanSource play a crucial role in connecting technology vendors with resellers and end-users.
Positioning
ScanSource positions itself as a value-added distributor (VAD) that provides not only products but also support, training, and other services to its reseller partners. This differentiates it from broader-line distributors.
Total Addressable Market (TAM)
The TAM for ScanSource's core markets (Unified Communications, Networking, and AIDC) is estimated to be hundreds of billions of dollars globally. ScanSource captures a portion of this market through its reseller network.
Upturn SWOT Analysis
Strengths
- Strong reseller network
- Value-added services and support
- Focus on specialized technology areas
- Established relationships with leading vendors
Weaknesses
- Reliance on reseller channel
- Exposure to vendor concentration risk
- Smaller scale compared to larger distributors
- Inventory management complexities
Opportunities
- Expansion into new technology areas (e.g., IoT, AI)
- Growth in cloud-based solutions
- Increased demand for cybersecurity solutions
- Geographic expansion
Threats
- Consolidation in the distribution industry
- Direct sales by vendors
- Economic downturn
- Disruptive technologies
Competitors and Market Share
Key Competitors
- TD SYNNEX (SNX)
- Ingram Micro (IMDG)
- D&H Distributing (Private)
Competitive Landscape
ScanSource competes primarily on its value-added services, specialized product expertise, and strong reseller relationships. Larger distributors have greater scale and broader product portfolios, while smaller, niche distributors may offer more focused expertise in specific areas.
Major Acquisitions
Canpango
- Year: 2018
- Acquisition Price (USD millions): 22
- Strategic Rationale: Strengthens Salesforce service capabilities to accelerate cloud and recurring revenue.
Growth Trajectory and Initiatives
Historical Growth: ScanSource's historical growth has been driven by acquisitions, organic expansion into new product categories, and growth in its core markets.
Future Projections: Analyst estimates should be consulted for projections of future revenue growth, earnings, and other key financial metrics.
Recent Initiatives: Recent initiatives might include acquisitions, partnerships with new vendors, or investments in new technologies.
Summary
ScanSource is a specialized distributor in the technology space, exhibiting strength in value-added services and reseller networks. However, it faces challenges from larger competitors and vendor concentration. Their absence of dividends may deter some investors, but strategic acquisitions could boost future growth. Monitoring market trends and adapting to new technologies will be crucial for sustained success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Analyst Reports
- Industry Publications
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share data and other estimates may not be precise and are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ScanSource Inc
Exchange NASDAQ | Headquaters Greenville, SC, United States | ||
IPO Launch date 1994-03-18 | Founder, Chairman, CEO & President Mr. Michael L. Baur | ||
Sector Technology | Industry Electronics & Computer Distribution | Full time employees 2300 | Website https://www.scansource.com |
Full time employees 2300 | Website https://www.scansource.com | ||
ScanSource, Inc. engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, and intrusion-related devices; networking products comprising wireless and networking infrastructure products; other software-as-a-service (SaaS) products; and engages in hardware rental activities. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cybersecurity, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government. The company serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.
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