ScanSource combines a cheap, cash-generative valuation and rising analyst estimates with a weak-growth headwind and a negative risk-adjusted asymmetry ratio, consistent with a call to consider reducing the position.
Thesis pillars
- Weak Growth Headwind→Stable
- Cheap Valuation With Cash Conversion→Stable
- Earnings Beat Streak With Rising Estimates→Stable
- +1 more pillar — see the Why tab for full reasoning
ScanSource, Inc. (SCSC) Stock Analysis
Inst Constrain edge
Technology · Electronics & Computer Distribution
Sell if holding. Analyst target reached at $58.48 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3).
ScanSource is a technology distributor connecting devices to the cloud, providing hardware, SaaS, connectivity, and cloud services from about 500 suppliers to roughly 25,000 channel sales partners in the U.S., Canada, and Brazil. The company generated $3.04 billion in net sales... Read more
Sell if holding. Analyst target reached at $58.48 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 42d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About ScanSource, Inc.
About ScanSource, Inc.
ScanSource connects roughly 25,000 channel sales partners in the United States, Canada, and Brazil with technology solutions from about 500 suppliers across more than 65,000 products, generating $3.04 billion in net sales for the fiscal year ended June 30, 2025. The company operates through two segments — Specialty Technology Solutions and Intelisys & Advisory — and employed approximately 2,100 people, with 700 located outside the U.S.
ScanSource earns most of its revenue by purchasing hardware, SaaS, and cloud offerings from roughly 500 suppliers — including Cisco, Zebra, AT&T, Microsoft, and HPE/Aruba — and reselling them through five channel-partner types: value-added resellers, advisors, independent sales organizations, independent software vendors, and managed service providers. Its Intelisys & Advisory segment instead runs an agency model, earning monthly commissions as a technology services distributor for connectivity, cloud, and emerging technology services rather than taking hardware ownership. Margin depends on supplier purchase discounts and rebates tied to sales-volume targets, and on stock-rotation and price-protection terms that cushion against inventory obsolescence and manufacturer price cuts. Cisco and Zebra together made up a significant percentage of net sales in fiscal 2025, and the 10-K names Ingram Micro, TD Synnex, ADI, Wesco, and BlueStar as competitors in Specialty Technology Solutions, and Avant and Telarus as competitors in Intelisys & Advisory.
Show full overview
Beyond the segment and channel-partner facts above, ScanSource's 10-K flags supply-chain dependency as its most concrete named risk: Cisco and Zebra together made up more than 10% of net sales in fiscal 2025, supplier agreements are typically short-term and terminable without cause on 30 to 120 days' notice, and the company holds no guaranteed price or delivery agreements with any supplier. The filing also notes that suppliers are increasingly combining and merging, which it says leaves the company with fewer alternative sources, while a significant portion of the products ScanSource sells are manufactured or sourced in Asia by its suppliers, layering regional trade exposure on top of the named-supplier concentration.
See also: Technology · Electronics & Computer Distribution
From ScanSource, Inc.'s most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-23Recent Developments — ScanSource, Inc.
Latest news
- NEWS ScanSource Earnings: What To Look For From SCSC - StockStory — StockStory neutral
- NEWS ScanSource Earnings: What To Look For From SCSC - TradingView — TradingView neutral
- NEWS ScanSource (SCSC) Earnings Check: Profit Per Share Falls Below Its Benchmark for This Review; Closing Response - Vinanet — Vinanet negative
- NEWS Meeder Asset Management Inc. Acquires Shares of 93,287 ScanSource, Inc. $SCSC - MarketBeat — MarketBeat neutral
- NEWS ScanSource (SCSC) Stock Trades Down, Here Is Why - Yahoo Finance — Yahoo Finance negative
Generated 2026-09-24T04:36:59Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierCisco and Zebra10-K Item 1A: 'A significant percentage of our net sales relates to products we purchase from relatively few suppliers, including Cisco and Zebra.'
Material Events(8-K, last 90d)
- 2026-05-29Item 5.02MEDIUMSEVP and CIO Rachel Hayden's role was eliminated effective June 8, 2026. She is entitled to severance under the company's Executive Severance Plan; no successor CIO named.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $58.48 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $55.05. Score 5.8/10, moderate confidence.
Take-profit target: $67.26 (-12.1% upside). Prior stop was $55.05. Stop-loss: $55.05.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3); Sector modifier (Technology): -0.8.
ScanSource, Inc. trades at a P/E of 15.7 (forward 10.1). TrendMatrix value score: 8.5/10. Verdict: Sell.
8 analysts cover SCSC with a consensus score of 2.4/5. Average price target: $61.
What does ScanSource, Inc. do?ScanSource is a technology distributor connecting devices to the cloud, providing hardware, SaaS, connectivity, and...
ScanSource is a technology distributor connecting devices to the cloud, providing hardware, SaaS, connectivity, and cloud services from about 500 suppliers to roughly 25,000 channel sales partners in the U.S., Canada, and Brazil. The company generated $3.04 billion in net sales for fiscal 2025 across its Specialty Technology Solutions and Intelisys & Advisory segments, with Cisco and Zebra making up a significant share of net sales.