Latest Ratios: P/E Ratio 19.1x · EV/EBITDA 10.3x · ROE 7.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.2B | $997M | $1.1B | $750M | $802M | $718M | $611M | $838M | $1.0B | $1.0B | $990M |
| Enterprise Value | $1.2B | $1.0B | $1.1B | $1.1B | $1.1B | $819M | $826M | $1.2B | $1.3B | $1.1B | $1.0B |
| P/E Ratio → | 19.10 | 13.94 | 14.48 | 8.52 | 9.05 | 15.80 | — | 14.54 | 31.24 | 14.87 | 15.59 |
| P/S Ratio | 0.38 | 0.33 | 0.34 | 0.20 | 0.23 | 0.23 | 0.20 | 0.22 | 0.27 | 0.29 | 0.28 |
| P/B Ratio | 1.51 | 1.10 | 1.21 | 0.83 | 0.99 | 0.98 | 0.90 | 0.92 | 1.19 | 1.23 | 1.28 |
| P/FCF | 11.19 | 9.58 | 3.08 | — | — | 5.18 | 2.78 | — | 52.39 | 12.47 | 24.68 |
| P/OCF | 10.36 | 8.87 | 3.01 | — | — | 5.09 | 2.70 | — | 37.05 | 10.84 | 18.97 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.33 | 0.33 | 0.28 | 0.30 | 0.26 | 0.27 | 0.30 | 0.33 | 0.30 | 0.28 |
| EV / EBITDA | 10.27 | 8.82 | 9.18 | 6.43 | 6.92 | 8.62 | — | 9.50 | 11.95 | 9.45 | 8.82 |
| EV / EBIT | 13.91 | 9.94 | 9.62 | 7.78 | 8.41 | 11.50 | 13.04 | 9.88 | 17.93 | 11.44 | 10.21 |
| EV / FCF | — | 9.78 | 2.99 | — | — | 5.91 | 3.76 | — | 63.75 | 12.97 | 25.06 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.4% | 13.4% | 12.2% | 11.9% | 12.1% | 11.1% | 11.7% | 11.7% | 11.3% | 10.8% | 10.0% |
| Operating Margin | 2.8% | 2.8% | 2.8% | 3.6% | 3.5% | 2.0% | -2.1% | 2.3% | 1.8% | 2.5% | 2.7% |
| Net Profit Margin | 2.4% | 2.4% | 2.4% | 2.4% | 2.5% | 0.3% | -6.3% | 1.5% | 0.9% | 1.9% | 1.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.8% | 7.8% | 8.4% | 10.5% | 11.5% | 1.5% | -24.2% | 6.5% | 3.9% | 8.6% | 8.0% |
| ROA | 4.0% | 4.0% | 4.0% | 4.5% | 4.9% | 0.6% | -10.2% | 2.9% | 1.8% | 4.3% | 4.3% |
| ROIC | 7.0% | 7.0% | 6.4% | 9.0% | 9.7% | 5.3% | -4.5% | 5.8% | 5.2% | 7.9% | 9.8% |
| ROCE | 7.7% | 7.7% | 7.6% | 11.3% | 11.8% | 6.4% | -5.6% | 6.9% | 5.9% | 9.0% | 10.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.16 | 0.16 | 0.17 | 0.38 | 0.36 | 0.22 | 0.36 | 0.39 | 0.29 | 0.12 | 0.10 |
| Debt / EBITDA | 1.27 | 1.27 | 1.30 | 2.09 | 1.90 | 1.73 | — | 2.92 | 2.37 | 0.86 | 0.67 |
| Net Debt / Equity | — | 0.02 | -0.03 | 0.34 | 0.31 | 0.14 | 0.32 | 0.37 | 0.26 | 0.05 | 0.02 |
| Net Debt / EBITDA | 0.18 | 0.18 | -0.27 | 1.87 | 1.65 | 1.07 | — | 2.72 | 2.13 | 0.36 | 0.14 |
| Debt / FCF | — | 0.20 | -0.09 | — | — | 0.73 | 0.98 | — | 11.36 | 0.50 | 0.39 |
| Interest Coverage | 12.78 | 12.78 | 8.66 | 6.87 | 19.19 | 10.28 | 5.18 | 9.03 | 7.66 | 29.07 | 46.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.01 | 2.01 | 2.10 | 2.11 | 1.87 | 1.66 | 1.67 | 2.11 | 1.92 | 1.95 | 2.10 |
| Quick Ratio | 1.30 | 1.30 | 1.33 | 1.14 | 1.12 | 1.02 | 1.04 | 1.11 | 1.08 | 1.14 | 1.15 |
| Cash Ratio | 0.18 | 0.18 | 0.28 | 0.05 | 0.05 | 0.09 | 0.04 | 0.03 | 0.04 | 0.09 | 0.10 |
| Asset Turnover | — | 1.70 | 1.83 | 1.83 | 1.82 | 1.88 | 1.80 | 1.87 | 1.98 | 2.08 | 2.37 |
| Inventory Turnover | 5.44 | 5.44 | 5.58 | 4.41 | 5.05 | 5.96 | 5.92 | 4.91 | 5.72 | 5.99 | 5.70 |
| Days Sales Outstanding | — | 88.22 | 65.11 | 80.30 | 83.21 | 75.48 | 60.44 | 55.02 | 64.43 | 65.19 | 57.69 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 7.2% | 6.9% | 11.7% | 11.0% | 6.3% | — | 6.9% | 3.2% | 6.7% | 6.4% |
| FCF Yield | 8.9% | 10.4% | 32.5% | — | — | 19.3% | 36.0% | — | 1.9% | 8.0% | 4.1% |
| Buyback Yield | 9.1% | 10.7% | 3.8% | 2.1% | 2.3% | 0.1% | 1.0% | 1.1% | 0.2% | 2.0% | 10.1% |
| Total Shareholder Yield | 9.1% | 10.7% | 3.8% | 2.1% | 2.3% | 0.1% | 1.0% | 1.1% | 0.2% | 2.0% | 10.1% |
| Shares Outstanding | — | $24M | $25M | $25M | $26M | $26M | $25M | $26M | $26M | $26M | $27M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SCSC stock.
ScanSource, Inc.'s current P/E ratio is 19.1x. The historical average is 16.9x. This places it at the 72th percentile of its historical range.
ScanSource, Inc.'s current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
ScanSource, Inc.'s return on equity (ROE) is 7.8%. The historical average is 11.5%.
Based on historical data, ScanSource, Inc. is trading at a P/E of 19.1x. This is at the 72th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ScanSource, Inc. has 13.4% gross margin and 2.8% operating margin.
ScanSource, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
OEM concentration and hardware cyclicality
Metrics are mathematically derived from official filings.
Valuation Reflects Conglomerate Discount
ScanSource trades at a significant discount to peers with a forward P/E of 14.34x and EV/EBITDA of 8.05x, suggesting the market is not fully pricing the high-margin, recurring revenue stream from its Modern Communications & Cloud segment.
The company's valuation multiples are compressed relative to peers like Arrow Electronics (EV/EBITDA 12.27x) and TD SYNNEX (EV/EBITDA 12.25x), despite a superior gross margin profile. This discount appears to stem from the market's focus on the lower-margin, cyclical hardware business in the Specialty Technology Solutions segment, potentially obscuring the value of the Intelisys commission stream. The low P/S ratio of 0.38x further indicates the market is valuing the company on its high-volume, low-margin hardware sales rather than its higher-margin services.
Gross Margin Expansion Masks Operating Leverage
Gross margin expanded to a period-high of 13.8% in Q4 2026, yet operating margin remains thin at 3.2%, indicating that the value-added technical model requires significant personnel investment to support its specialized distribution.
The gross margin trend suggests a favorable mix shift toward the higher-margin MCC segment, which carries nearly 100% gross margin on commissions. However, the operating margin has not expanded proportionally, implying that the fixed cost base, particularly in technical support and sales personnel, is substantial. This dynamic means that profitability is highly sensitive to revenue volume; the recent 17.3% revenue growth in Q4 2026 demonstrated meaningful operating leverage, but a return to contraction could quickly pressure earnings.
Returns on Capital Show Early Recovery
ROIC improved to 2.6% in Q4 2026 from a low of 1.3% in Q3 2024, but remains well below the cost of capital, indicating the business is still in the early stages of recovering from a period of capital inefficiency.
The improvement in ROIC appears to be driven by both a recovery in net margins and a slight uptick in asset turnover, suggesting better utilization of the asset base as revenue growth reaccelerates. However, the absolute level of return is still low compared to peers like Arrow Electronics (7.6% ROIC) and TD SYNNEX (9.9% ROIC), reflecting the capital-intensive nature of holding inventory for the hardware business. The trend is positive, but sustained improvement will require consistent revenue growth to leverage the fixed asset base.
Working Capital Efficiency Improves with Growth
The cash conversion cycle shortened to 45 days in Q4 2026 from a peak of 76 days in Q3 2024, driven by a significant reduction in days inventory outstanding, which suggests improved inventory management and faster hardware turnover.
The reduction in DIO from 76 to 56 days is a positive signal, indicating that the company is moving inventory more quickly, likely due to stronger demand and better alignment with OEM production cycles. Days sales outstanding (DSO) has also improved, suggesting tighter credit management with resellers. However, the volatility in CCC over the period highlights the inherent unpredictability of working capital in a business model that acts as a bank for its customers and holds significant inventory.
Minimal Leverage Provides Strategic Buffer
With a debt-to-equity ratio of just 0.12 and interest coverage of 24.27x, ScanSource maintains an exceptionally conservative balance sheet that provides significant flexibility to navigate hardware cyclicality and pursue strategic acquisitions.
The low leverage is a deliberate strategic choice that insulates the company from rising interest rates and provides a buffer during periods of weak cash flow. The high interest coverage ratio indicates that debt service is not a concern, and the company could comfortably take on additional debt if a compelling acquisition opportunity arose. This financial strength is a key differentiator from more leveraged peers and supports the company's ability to invest in its cloud services platform.
The Misleading Power of the P/E Ratio
The P/E ratio of 18.85x is the most commonly misapplied metric for ScanSource, as it obscures the conglomerate nature of the business and the different earnings quality between its hardware and services segments.
The market often applies a single P/E multiple to ScanSource, but this fails to account for the two distinct business models: a low-margin, cyclical hardware distributor and a high-margin, recurring-revenue services aggregator. The hardware segment's earnings are volatile and capital-intensive, while the MCC segment's earnings are more stable and asset-light. A sum-of-the-parts analysis, valuing the segments separately, would likely reveal a higher intrinsic value than the blended P/E suggests, as the market may be applying a distributor multiple to the entire business.