Forensic Analysis · Trading Companies & Distributors · as of Aug 11, 2026

Scansource, Inc. (SCSC)

A forensic read on Scansource, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

C · Mixed — selective

Forensic grade

Safe

Financial health

6.0

Distress distance

Clean

Earnings quality

Forensic signals

15.5

P / E (ttm)

7.9%

ROE

$1.1B

Market cap

-6.7%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Scansource, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 6.0, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

6.6%

FY2025

Return on invested capital. Return on invested capital is 6.6% in the latest fiscal year and slipping from 8% — slightly below its ~8% cost of capital — reinvestment is roughly a wash.

102% of FCF

FY2025

Shareholder returns. Returned $107M to shareholders (buybacks + dividends) in FY2025 — 102% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. That ratio has been CLIMBING toward the limit — 3% of free cash flow a few years back — not just sitting there. Counting the $11M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 113%.

$119M

FY2020–FY2020

Goodwill impairments. Took $119M of goodwill writedowns across 1 year (FY2020 ($119M)). Writedowns mean past acquisitions underperformed what was paid for them.

Key fundamentals

Latest Revenue$3.04B

Revenue Growth YoY-6.7%

Revenue CAGR (3yr)-4.8%

Net Margin2.4%

Free Cash Flow$104.1M

Return on Equity7.9%

Debt / Equity0.15x

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.