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SCSC (ScanSource) Piotroski F-Score : 6 (As of Oct. 29, 2024)


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What is ScanSource Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

ScanSource has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for ScanSource's Piotroski F-Score or its related term are showing as below:

SCSC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 6
Current: 6

During the past 13 years, the highest Piotroski F-Score of ScanSource was 6. The lowest was 3. And the median was 5.


ScanSource Piotroski F-Score Historical Data

The historical data trend for ScanSource's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ScanSource Piotroski F-Score Chart

ScanSource Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 6.00 6.00 3.00 6.00

ScanSource Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 6.00 7.00 6.00 6.00

Competitive Comparison of ScanSource's Piotroski F-Score

For the Electronics & Computer Distribution subindustry, ScanSource's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ScanSource's Piotroski F-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, ScanSource's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where ScanSource's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 15.432 + 32.726 + 12.806 + 16.096 = $77 Mil.
Cash Flow from Operations was 93.533 + 63.224 + 160.151 + 54.739 = $372 Mil.
Revenue was 876.305 + 884.792 + 752.599 + 746.113 = $3,260 Mil.
Gross Profit was 106.508 + 100.748 + 94.481 + 97.314 = $399 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(2068.169 + 1898.535 + 1780.805 + 1782.988 + 1779.032) / 5 = $1861.9058 Mil.
Total Assets at the begining of this year (Jun23) was $2,068 Mil.
Long-Term Debt & Capital Lease Obligation was $143 Mil.
Total Current Assets was $1,405 Mil.
Total Current Liabilities was $669 Mil.
Net Income was 24.042 + 25.734 + 21.221 + 18.812 = $90 Mil.

Revenue was 943.813 + 1011.241 + 885.519 + 947.148 = $3,788 Mil.
Gross Profit was 113.485 + 115.334 + 111.762 + 108.658 = $449 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(1937.428 + 2000.312 + 2130.529 + 1980.382 + 2068.169) / 5 = $2023.364 Mil.
Total Assets at the begining of last year (Jun22) was $1,937 Mil.
Long-Term Debt & Capital Lease Obligation was $332 Mil.
Total Current Assets was $1,657 Mil.
Total Current Liabilities was $787 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

ScanSource's current Net Income (TTM) was 77. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

ScanSource's current Cash Flow from Operations (TTM) was 372. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=77.06/2068.169
=0.03726001

ROA (Last Year)=Net Income/Total Assets (Jun22)
=89.809/1937.428
=0.04635475

ScanSource's return on assets of this year was 0.03726001. ScanSource's return on assets of last year was 0.04635475. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

ScanSource's current Net Income (TTM) was 77. ScanSource's current Cash Flow from Operations (TTM) was 372. ==> 372 > 77 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=142.706/1861.9058
=0.07664512

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=332.315/2023.364
=0.16423886

ScanSource's gearing of this year was 0.07664512. ScanSource's gearing of last year was 0.16423886. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=1404.699/669.352
=2.09859536

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=1657.075/786.801
=2.10609163

ScanSource's current ratio of this year was 2.09859536. ScanSource's current ratio of last year was 2.10609163. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

ScanSource's number of shares in issue this year was 25.015. ScanSource's number of shares in issue last year was 25.14. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=399.051/3259.809
=0.12241545

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=449.239/3787.721
=0.11860404

ScanSource's gross margin of this year was 0.12241545. ScanSource's gross margin of last year was 0.11860404. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=3259.809/2068.169
=1.57618115

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=3787.721/1937.428
=1.95502543

ScanSource's asset turnover of this year was 1.57618115. ScanSource's asset turnover of last year was 1.95502543. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

ScanSource has an F-score of 6 indicating the company's financial situation is typical for a stable company.

ScanSource  (NAS:SCSC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


ScanSource Piotroski F-Score Related Terms

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ScanSource Business Description

Traded in Other Exchanges
Address
6 Logue Court, Greenville, SC, USA, 29615
ScanSource Inc provides value-added services for technology manufacturers and sells to resellers in specialty technology markets. The firm's operations are organized in two segments: Specialty Technology Solutions and Modern Communications and Cloud. It generates maximum revenue from the Specialty Technology Solutions segment. The Specialty Technology Solutions segment includes the company's business in mobility and barcode, POS, payments, security and networking technologies. Geographically, it derives a majority of revenue from the United States.
Executives
Rachel Hayden officer: Senior Executive VP & CIO 6 LOGUE COURT, GREENVILLE SC 29615
Michael L Baur officer: President and CEO 6 LOGUE COURT, GREENVILLE SC 29615
Shana C Smith officer: Sr. EVP & Chief Legal Officer 1875 EXPLORER ST SUITE 800, RESTON VA 20190
Stephen Jones officer: Sr. EVP & CFO 6 LOGUE COURT, GREENVILLE SC 29615
Charles Alexander Mathis officer: Vice-President & CFO 627 ISLAND PARK DRIVE, DANIEL ISLAND SC 29492
Brandy Ford officer: SVP & Chief Accounting Officer 6 LOGUE COURT, GREENVILLE SC 29615
Peter C Browning director GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
John Charles Eldh officer: Sr. EVP & Chief Revenue Off. 6 LOGUE COURT, GREENVILLE SC 29615
Vernon J Nagel director 1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Charles R Whitchurch director 143 FULLER LANE, WINNDKER IL 60093
Michael J Grainger director C/O INGRAM MICRO INC WORLD WIDE L, 1600 E ST ANDREW PLACE, SANTA ANA CA 92705
Emory Frank Edward Jr. director 2809 SHARON VIEW ROAD, CHARLOTTE NC 28210
Jeffrey R Rodek director 4151 GULF SHORE BLVD N, PH2, NAPLES FL 34103
Matthew Dean officer: VP and General Counsel 101 LEDGESTONE WAY, GREER SC 29651
Gerald Lyons officer: SVP & Principal Acctg Officer 6 LOGUE CT., GREENVILLE SC 29615