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SCSC

💻 Technology

ScanSource, Inc.

Conservative #689Aggressive #1037Low RiskHigh 100
$36.87+1.88%
Day High$37.05
Day Low$36.03
Volume0.1M
Mkt Cap$809M
52W Low $2952W High $46
Market Cap
$817M
P/E Ratio
11.0
Sector avg: 87.8
Rev Growth
-6.7%
Sector avg: 14.8%
Earnings Growth
-7.2%
Profit Margin
2.4%
Sector avg: -110.0%
Debt/Equity
0.13

Why This Score

SCSC scores 45.7 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Attractively valued at 11.0x earnings, below the market average.
  • High conviction (100/100) — fundamental and ML signals agree on this stock.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 5-point penalty for execution risk.
  • Above-average volatility (10.1%) may not suit conservative risk tolerance.

Moderate penalties (-6.9 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score45.7
Fundamental Score48.0
ML Score51.0

Score by Horizon

3 Month
76.4
6 Month
85.4
Primary
1 Year
89.9

Quality Assessment

B
Earnings Grade
Solid fundamentals with minor quality concerns

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
45
Neutral
Analyst (6.4%)
50
Neutral
Tradability (post-hoc)
54
Grade C
Base
41.7
SHAP
+1.3
Factors
+0.9
Conviction
+1.9
Final
45.7
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)47.0
Technical (Momentum, Weinstein, Volatility)54.0
External (Sentiment, Analyst, Macro)74.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-0.2% to +6.5%
Medium-term
-0.1% to +10.1%
Long-term
+0.6% to +14.2%

ML Model Core Features100 trained inputs → ML Score: 51

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score50.0/100
Target Upside+18.5%
Coverage5 analysts
Market Sentiment
Sentiment Score44.8/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum-0.0%
6M Momentum-0.2%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+15.7%
Momentum ConsistencyWeak (0.13)
Relative Strength vs Sector-6.0%
Trend Strength (ADX Proxy)Weak (0.2)
Momentum Quality-0.020
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
59%
High risk — cheap + stagnating
Sector RevGr Rank
P10
Revenue growth vs Technology peers
Sector PE Rank
P72
Valuation vs Technology peers
Sector FCF Rank
P92
Free cash flow vs Technology peers
Growth Deviation
-0.4σ
Z-score vs sector median
Stagnation Flag
YES
Below-sector growth + cheap PE
Value trap warning: This stock scores in the top quartile for value trap risk. The combination of below-sector-median revenue growth, low PE, and high free cash flow yield suggests the market is pricing in stagnation. The ML model's sector-relative features (trained on 30 years of data) reduce this stock's score accordingly.

Analysis Signals

Scoring Factors
Fundamental score of 81 relative to sector peers81/100
Machine learning model ranks this stock at the 84th percentileP84
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.4pt (features align with model priorities)
Blend: 91% fund (80.6) + 9% ML (84.2) + SHAP(+2.4) = 83.3
Factor quality: +1.7pt (multi-factor composite)
Risk assessment: low. Annualized volatility 10.1%. Max drawdown 19% (-4.3 pts)Low
Market cap adjustment: -15.0 points ($0.8B market cap)-15.0 pts
Conviction bonus: +3.6pt (conviction=100)
Risk Factors
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by -5 pointsGrade B
Quality concern: High accrual ratio (-72.9%) — earnings quality concernFlag

Sector Peer Comparison(Technology — Rank #160 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
SCSC45.711.0-6.7%2.4%$817M
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Hold5 analysts
Hold: 5
Price Target
$43consensus
Low $43Median $43High $43
+16.6% to consensus target

Company Overviewvia FMP

ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. 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, intrusion-related, and wireless and networking infrastructure products. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, 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.

CEO
Michael L. Baur
Employees
2,300
Beta
1.26
Industry
Technology Distributors
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
30.2
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-20.3%
High: $46.25
From 52W Low
+28.2%
Low: $28.75
Moving Averages
10-Day
$36.20
Above
20-Day
$38.50
Below
50-Day
$39.70
Below
200-Day
$41.30
Below
60-Day Support
$33.76
60-Day Resistance
$45.23
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 21/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-10.7%
200 SMA Slope (60d)
+4.04%
Rising
Volume Ratio
0.99x
10d avg vs 50d avg
Days in Stage
14
Confidence: 40%

Financial Statementslast 4 quarters via FMP

MetricQ2 2025Q1 2025Q4 2025Q3 2025
Revenue$767M$740M$813M$705M
Gross Profit$97M$107M$105M$100M
Operating Income$19M$26M$27M$22M
Net Income$16M$20M$20M$17M
EPS (Diluted)$0.75$0.89$0.85$0.74
Gross Margin12.7%14.5%12.9%14.2%
Operating Margin2.5%3.5%3.3%3.2%
Net Margin2.2%2.7%2.5%2.5%

Why This Stock

TechnologyP/E ratio of 11.0Valuation below sector median (P/E 11.0)

Tradability FilterGrade C — 54/100Score impact: -9.1pt

Volume
51
208K avg/day
Dollar Vol
55
$7M/day
Float
51
21M shares
Mkt Cap
36
$817M
Range
90
61% spread
Composite Liquidity Score54/100
FDCBA

Multi-Year Range Analysis

Sideways: 2/100
YearLowHighRangeStatus
2021$24.89$40.8348.5%Wide
2022$25.75$41.0145.7%Wide
2023$26.14$40.4843.1%Wide
2024$31.01$53.9053.9%Wide
2025$28.75$52.0657.7%Wide
3-Year Range
69.4%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.35x dampening
weinstein basingrevenue decline

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
96.3%
Outstanding Shares
22M
Bid-Ask Spread
61.0%
Institutional Tradable
Limited

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.