SCSC
TechnologyScanSource, Inc. · Technology Distributors · $900M
What is ScanSource, Inc.?
ScanSource, Inc. is a technology distributor serving businesses across North America and internationally. Founded in 1994 and headquartered in Greenville, South Carolina, the company connects technology vendors with resellers and end-users across a wide range of vertical markets.
ScanSource operates through two segments. Specialty Technology Solutions covers enterprise mobile computing, barcode printing, point-of-sale systems, payments, networking, and physical security products. Modern Communications & Cloud focuses on voice, video conferencing, unified communications, cloud services, and data networking. The company acts as a value-added distributor — sourcing technology from manufacturers and delivering it through a network of resellers and channel partners to industries such as retail, healthcare, logistics, and government.
ScanSource was founded in 1994 and is headquartered in Greenville, US.
- Barcode, data capture, and point-of-sale solutions
- Electronic physical security and access control products
- Unified communications and cloud technology services
- Networking and wireless infrastructure distribution
- Enterprise mobility and payments technology
Is SCSC a Good Stock to Buy?
UQS Score rates SCSC as Below Average overall.
The most constructive aspects of SCSC's profile are its Risk and Valuation pillars. The Risk rating comes in at Good, suggesting the company carries a relatively manageable financial risk profile compared to many peers. Valuation is rated Attractive, meaning the stock does not appear expensive relative to what the business currently delivers.
Quality, Moat, and Growth all register as Weak — pointing to limited competitive differentiation, below-average business quality metrics, and a lack of meaningful near-term growth momentum.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SCSC pay dividends?
No — ScanSource, Inc. does not currently pay a dividend.
ScanSource does not currently pay a dividend. As a technology distributor operating in a competitive, lower-margin environment, the company has historically prioritized reinvesting available capital into operations and strategic initiatives rather than returning cash to shareholders through regular income distributions. Income-focused investors should factor this into their assessment.
When does SCSC report earnings?
ScanSource reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's recent results reflect the pressures common to technology distribution — a segment where volume, vendor relationships, and operational efficiency drive outcomes. Revenue trends and margin dynamics have been mixed, consistent with the Weak Growth pillar rating in the UQS framework.
For the most recent quarter's results and guidance, visit ScanSource's official investor relations page.
SCSC Price History
+32.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in ScanSource, Inc.?
Based on ScanSource, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SCSC Long-term Outlook
The fundamental outlook for SCSC is cautious. With Growth and Quality both rated Weak, the near-term trajectory does not point to a significant acceleration in business performance. The Good Risk rating does provide some stability — the balance sheet and financial structure appear relatively sound. The Attractive Valuation label suggests the market may already be pricing in a subdued growth outlook, which could limit downside but also caps near-term upside unless business fundamentals improve.
Growth drivers
- Expansion of cloud and unified communications distribution as enterprise demand grows
- Cross-selling opportunities across physical security and networking verticals
- Potential recovery in technology spending across healthcare and logistics end-markets
Key risks
- Thin distribution margins leaving little buffer against revenue softness
- Weak Moat rating signals limited pricing power and high vendor dependency
- Macro-driven slowdowns in enterprise technology spending could pressure volumes
SCSC vs Peers
ScanSource competes in the value-added technology distribution space alongside several focused channel players.
PC Connection focuses heavily on direct IT solutions and services for mid-market and enterprise clients, with a stronger services-attach model than pure distribution.
Climb Global specializes in emerging and niche technology vendors, targeting a narrower but potentially higher-growth segment of the channel distribution market.
Insight Enterprises operates at a larger scale with a broader managed services and cloud solutions portfolio, giving it more diversified revenue streams than ScanSource.
Frequently Asked Questions
What does ScanSource do?
ScanSource is a value-added technology distributor. It sources products from technology manufacturers and delivers them through reseller networks to end-users in industries like retail, healthcare, logistics, and government. Its two segments cover specialty hardware — such as barcode scanners and POS systems — and modern communications and cloud solutions.
Does SCSC pay dividends?
No, ScanSource does not currently pay a dividend. The company has not established a regular dividend program, and available capital appears directed toward operational needs rather than shareholder income distributions. Investors seeking dividend income should look elsewhere in the technology distribution space.
When does SCSC report earnings?
ScanSource reports financial results on a quarterly basis, in line with standard US-listed company practice. For the exact schedule and most recent results, check the investor relations section of ScanSource's official website.
Is SCSC a good stock to buy?
The UQS Score rates SCSC as Below Average, reflecting Weak ratings across Quality, Moat, and Growth pillars. The Attractive Valuation and Good Risk ratings provide some counterbalance. Whether that combination suits your portfolio depends on your own risk tolerance and investment criteria — the full pillar breakdown is available to UQS Pro members.
Is SCSC overvalued?
Based on the UQS Valuation pillar, SCSC is rated Attractive — meaning the stock does not appear expensive relative to current business fundamentals. However, an attractive price alone does not signal quality. The weak underlying business metrics are an important part of the full picture.
How does SCSC compare to its competitors?
ScanSource operates alongside peers like PC Connection, Climb Global Solutions, and Insight Enterprises. Compared to these players, ScanSource has a distinctive focus on specialty hardware and physical security alongside communications. Insight Enterprises is considerably larger, while Climb Global targets a narrower niche. UQS Pro members can view side-by-side pillar comparisons.
What is SCSC's market cap bracket?
ScanSource is classified as a small-cap company. This places it below large-cap and mega-cap technology distributors in terms of overall market size, which can mean greater sensitivity to sector-level shifts and less analyst coverage than larger peers.
Who founded ScanSource?
ScanSource was founded in 1994. The company's founding history and leadership background are publicly available through its official corporate and investor relations materials for those seeking more detail.
Is SCSC a long-term quality investment?
As a long-term quality indicator, the UQS framework rates SCSC as Below Average. Weak Quality and Moat scores suggest the business lacks the durable competitive advantages typically associated with compounding long-term returns. The Good Risk rating offers some reassurance on financial stability, but the overall profile warrants careful consideration.
What is the main competitive advantage of ScanSource?
ScanSource's primary advantage lies in its established distribution network and multi-segment coverage across both specialty hardware and communications technology. However, the UQS Moat pillar rates this as Weak, suggesting the company's competitive position is not strongly differentiated relative to peers in the distribution space.
What sector does SCSC belong to?
ScanSource operates in the Technology sector, specifically within technology distribution and value-added reselling. It serves as a channel intermediary between technology manufacturers and end-market resellers across North America and select international markets.
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Pro Analysis
SCSC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 16, 2026 | 46.3 | 33.2 | 20.0 | 24.8 | 86.9 | 100.0 | +1.8 |
| Apr 14, 2026 | 44.5 | 33.2 | 20.0 | 24.4 | 75.5 | 100.0 | -7.5 |
| Apr 13, 2026 | 52.0 | 33.2 | 50.0 | 24.4 | 75.5 | 100.0 | +7.5 |
| Apr 2, 2026 | 44.5 | 33.2 | 20.0 | 24.4 | 75.5 | 100.0 | — |
SCSC — Pillar Breakdown
Quality
— 33.2/100 (25%)ScanSource, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 24.8/100 (20%)ScanSource, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 86.9/100 (15%)ScanSource, Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 100.0/100 (15%)ScanSource, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 20/100 (25%)ScanSource, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SCSC.
Score Composition
Financial Data
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How is the SCSC UQS Score Calculated?
The UQS (Unified Quality Score) for ScanSource, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses ScanSource, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether ScanSource, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.