MeritValue

SCANSOURCE, INC.

SCSCdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'

The thesis, from the filings

SCANSOURCE, INC. earns about 9% on invested capital, barely covering its ~9% cost of capital, and has bought back 16% of its shares over 5 years. The estimate methods put fair value between $37.1 and $98.11 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.53B1$3.79B2$3.26B3$3.04B3$3.23B3
Net income$88.8M4$89.8M5$77.1M6$71.5M6$78.9M6
Operating cash flow−$124.4M7−$35.8M8$371.6M9$112.3M9$123.1M9
Capital expenditure$6.85M10$9.98M11$8.56M12$8.29M12$9.29M12
Free cash flow (derived)−$131.2M7−$45.7M8$363.1M9$104.1M9$113.8M9
Total debt$135.3M13$150.9M14$144M15$136.1M16$101.4M16
Cash & equivalents$38M17$36.2M18$185.5M19$126.2M20$88.4M20
Diluted shares25.8M25.4M25.2M23.8M21.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$419.87
your share of equity
Profit it earned you last year
$36.36
Free cash flow it threw off
$52.48
Debt you’d be carrying
$46.75

10 shares is a claim on $419.87 of net worth that earned you $36.36 and generated $52.48 of cash last year, against $46.75 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
9% avg · 5y
FY22 10%FY23 10%FY24 9%FY25 8%FY26 9%

It earned about 9% on invested capital against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
−16% shares · 5y

Share count is down 16% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 25% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $37.1 and $98.11 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$98.11
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$113.8M
DCF · Growth Exit 5Y
$90.45
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$113.8M
Earnings Power Value
$37.1
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$78.9M
  • growthAssumed0.0%
Graham Number
$60.83
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)9.08%
Terminal growth2.5%
At your growth, a share is worth $90.45
The three cases
Bear0.0%$72.75
Base5.0%$90.45
Bull10.0%$111.63

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0000918965-24-000029 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000918965-25-000029 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0000918965-26-000044 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0000918965-24-000029 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0000918965-25-000029 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0000918965-26-000044 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0000918965-24-000029 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  8. 10-K · period ending 2023-06-30 · accession 0000918965-25-000029 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  9. 10-K · period ending 2024-06-30 · accession 0000918965-26-000044 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000918965-24-000029 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2023-06-30 · accession 0000918965-25-000029 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2024-06-30 · accession 0000918965-26-000044 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2022-06-30 · accession 0000918965-23-000023 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0000918965-24-000029 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0000918965-25-000029 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0000918965-26-000044 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0000918965-23-000023 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0000918965-24-000029 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0000918965-25-000029 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0000918965-26-000044 (CashAndCashEquivalentsAtCarryingValue)