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↓Deteriorating
- Cheap Valuation With Cash Conversion↑Improving
- Earnings Beat Streak With Rising Estimates↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Aug 20, 2026· older than 90 days
ScanSource, Inc. (SCSC) Stock Analysis
Inst Constrain edge
Technology · Electronics & Computer Distribution
Sell if holding. Analyst target reached at $56.50 — A.R:R is negative (-0.4) — 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 serving about 25,000 channel sales partners in the United States and Brazil through two segments: Specialty Technology Solutions (wholesale/resale of barcode, POS, payment, security, networking and communications products) and Intelisys &... Read more
Sell if holding. Analyst target reached at $56.50 — A.R:R is negative (-0.4) — 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 5.7/10, moderate confidence.
Passes 3/8 gates (news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity and earnings proximity 2d<=7d. Suitability: aggressive.
About ScanSource, Inc.
About ScanSource, Inc.
ScanSource generated net sales of $3.23 billion in the fiscal year ended June 30, 2026 by distributing technology products and services from approximately 500 suppliers to about 25,000 channel sales partners in the United States and Brazil. The South Carolina company, incorporated in 1992, markets over 65,000 products from facilities in Mississippi, California, Kentucky and three Brazilian states, and employed roughly 2,100 people at June 30, 2026.
The business runs on two sales models. Specialty Technology Solutions buys from suppliers and resells through a wholesale model, covering mobility and barcode, point-of-sale, payment terminals, physical security, networking, communications and connectivity products. Intelisys & Advisory acts as a technology services distributor under an agency sales model, offering connectivity, cloud and next-generation services through contracts with more than 200 telecom carriers and cloud providers. Channel sales partners buy mostly on a purchase order basis, and no single partner exceeded 10% of net sales in fiscal 2026. Supplier terms carry non-exclusive distribution rights, stock rotation and price protection provisions, and volume-based rebates. In the specialty segment the company competes with broad-line distributors Ingram Micro and TD Synnex, along with security specialists ADI and Wesco; in Intelisys & Advisory its named rivals are Avant and Telarus.
Show full overview
Supplier concentration is the sharpest exposure. Products from Cisco and Zebra each constituted more than 10% of net sales in fiscal 2026, and the company holds three non-exclusive agreements with each. The two-year Cisco distribution agreements for the United States and Brazil may be terminated on 30 days' notice, and the Zebra enterprise mobility agreement carries the same 30-day termination right. If either vendor changes terms, cuts rebates or shifts volume to other distributors, margins and revenue could weigh on results. The 10-K also notes that supplier consolidation is leaving the company with fewer alternative sources, and that a 2023 ransomware incident disrupted its ordering systems.
See also: Technology · Electronics & Computer Distribution
From ScanSource, Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated Oct 30, 2026Recent Developments — ScanSource, Inc.
Latest news
- NEWS Vanguard Capital Management Reports 5.03% Ownership in ScanSource Inc Common Stock - Kalkine Media — Kalkine Media Oct 30, 2026 neutral
- NEWS SCSC Q1'27 Earnings: revenue estimate is 848.55M USD - TradingView — TradingView Oct 29, 2026 neutral
- NEWS ScanSource, Inc. Files Form DEF 14A Proxy Statement — fiscal.ai Oct 27, 2026 neutral
- NEWS SCANSOURCE, INC. ($SCSC) Chair and CEO 2026 Pay Revealed - Quiver Quantitative — Quiver Quantitative Oct 26, 2026 neutral
- NEWS ScanSource Earnings: What To Look For From SCSC - StockStory — StockStory Aug 19, 2026 neutral
Latest item Oct 30, 2026 · Generated 2026-11-03T11:49:08Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierCisco and Zebra suppliers10-K Item 1: 'Products from two suppliers, Cisco and Zebra, each constituted more than 10% of our net sales for the fiscal year ended June 30, 2026.'
- LOWGeographicBrazil7.0%10-K Item 1A: 'approximately 7.0% of our revenue, substantially from Brazil, was derived from our operations outside of the United States'
Material Events(8-K, last 90d)
- 2026-08-17Item 5.02LOWDirector Peter C. Browning, on the Board since 2014, retired effective August 12, 2026; Board shrank to seven seats. Company states no disagreement.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $56.50 — A.R:R is negative (-0.4) — 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 $54.12. Score 5.7/10, moderate confidence.
Analyst target $54.82 reached (−3.0% from $56.50); no take-profit level is published. Prior stop was $54.12. Stop-loss: $54.12.
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 15.5 (forward 9.7). TrendMatrix value score: 8.5/10. Verdict: Sell.
8 analysts rate SCSC, with a consensus score of 2.4/5. 2 analysts publish price targets averaging $65.
What does ScanSource, Inc. do?ScanSource is a technology distributor serving about 25,000 channel sales partners in the United States and Brazil...
ScanSource is a technology distributor serving about 25,000 channel sales partners in the United States and Brazil through two segments: Specialty Technology Solutions (wholesale/resale of barcode, POS, payment, security, networking and communications products) and Intelisys & Advisory (agency sales of connectivity and cloud services). Net sales were $3.23 billion in fiscal 2026, with products from approximately 500 suppliers. Cisco and Zebra each exceeded 10% of net sales.