Scansource Intrinsic Value – ScanSource Announces Working Capital Improvement Plan at Low Cost
November 29, 2023
☀️Trending News
SCANSOURCE ($NASDAQ:SCSC): ScanSource, a technology distributor, has announced a Working Capital Improvement Plan that offers a loan at a low interest rate. The company provides value-added services and products, such as point-of-sale, barcode, physical security, and voice and data communications solutions to resellers and independent software vendors. It is a publicly traded company listed on the Nasdaq Stock Market. The Working Capital Improvement Plan was created to help ScanSource’s customers and partners have access to capital that they can use for their business needs. The loan offered has a low interest rate, making it accessible and affordable to many businesses.
It also helps to ensure that businesses can continue to operate and grow during difficult economic times. The loan is part of ScanSource’s commitment to helping its customers and partners succeed with its wide range of services and products. The company has already helped many businesses improve their efficiency and productivity through its products and services. Now, with the Working Capital Improvement Plan, ScanSource is providing another way for businesses to access funds at an affordable rate.
Stock Price
On Monday, ScanSource announced a working capital improvement plan that is expected to help the company reduce costs. The plan, which will be implemented at a low cost, is aimed at improving the company’s overall financial health and creating long-term value for shareholders. In response to the announcement, SCANSOURCE stock opened at $31.8 and closed at $32.0, down by 0.2% from the last closing price of 32.1. The stock has been volatile in recent months, with investors uncertain about the potential impact of the plan on the company’s financials.
However, many analysts remain optimistic that the plan will help ScanSource reach its goals of increased profitability and long-term growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Scansource. More…
| Total Revenues | Net Income | Net Margin |
| 3.72k | 81.2 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Scansource. More…
| Operations | Investing | Financing |
| 106.22 | -9.89 | -96.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Scansource. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.9k | 983.28 | 36.66 |
Key Ratios Snapshot
Some of the financial key ratios for Scansource are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | 35.1% | 3.5% |
| FCF Margin | ROE | ROA |
| 2.8% | 9.0% | 4.3% |
Analysis – Scansource Intrinsic Value
At Good Whale, we’ve done a comprehensive analysis of SCANSOURCE‘s fundamentals. Our proprietary Valuation Line calculation shows that the intrinsic value of SCANSOURCE’s share is around $35.6. However, the current trading price for SCANSOURCE stock is at $32.0, making it a fair price which is slightly undervalued by 10.2%. More…
Peers
Its competitors include Sangfor Technologies Inc, Detection Technology PLC, and Surfilter Network Technology Co Ltd.
– Sangfor Technologies Inc ($SZSE:300454)
Sangfor Technologies Inc is a Chinese multinational networking and cybersecurity company. The company develops a wide range of products and solutions for enterprises, including but not limited to network security, cloud security, and data center security. As of 2022, Sangfor Technologies Inc has a market cap of 49.42B and a return on equity of -1.58%.
– Detection Technology PLC ($LTS:0CXE)
PLC is a provider of detection and imaging solutions for security, industrial, and scientific applications. The company’s products include X-ray security systems, metal detectors, and CT scanners. PLC has a market cap of 232.3M as of 2022 and a ROE of 8.82%. The company’s products are used in a variety of industries, including airports, government buildings, and schools.
– Surfilter Network Technology Co Ltd ($SZSE:300311)
As of 2022, Surfilter Network Technology Co Ltd has a market cap of 4.31B. The company has a Return on Equity of -4.76%. Surfilter Network Technology Co Ltd is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong. It is the world’s fourth-largest telecom equipment manufacturer, after Ericsson, Huawei, and Nokia.
Summary
ScanSource, Inc. recently announced a capital improvement plan in an effort to bolster their financial stability. Analysts believe the company is well-positioned to benefit from the long-term growth of the electronic payments industry and that ScanSource’s cost cutting efforts will help it remain competitive in the space. Investors considering investing in ScanSource should conduct their own research to evaluate the company’s potential for growth and profitability.
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