Does ScanSource, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores ScanSource, Inc. (SCSC) 40.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 25, returns on capital 14, balance-sheet safety 75, capital discipline 70.

Is SCSC stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $78.19 per share versus a recent price of $54.79 — 30% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has SCSC's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 40.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

ScanSource, Inc.

SCSC · Industrials · $1.2B mkt cap · FY2025 filings · Shallow moat ·

On the watchlist

Shallow moat

The four filters

Pricing power25

Median gross margin 11.8% over 10y, very stable.

Returns on capital14

Median ROIC 7.4%, above the 9% hurdle in 10% of years.

Balance-sheet safety75

Net debt/EBITDA 0.1x, interest coverage 11x.

Capital discipline70

Owner earnings +3.5%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

30% below value

Owner earnings (normalized): $96.5M
Est. intrinsic value / share: $78.19
Recent price: $54.79
Discount to value: 30% below value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

18 years of fundamentals

The business, in plain English

ScanSource, Inc. booked $3.0B of revenue in FY2025 in the Industrials sector and kept 13.4% of it as gross profit — a thin-margin business by that measure. After every other cost, 2.4% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.8B (FY2009) to $3.0B (FY2025) — about 3.2% a year compounded over 16 years.

It earned 7.0% on invested capital in FY2025, with a median of 8.2% across 17 filed years. The Returns on Capital filter above scores it 14/100.

The balance sheet carried $136.1M of total debt in FY2025 against $93.5M of owner earnings — roughly 1.5 years of owner earnings to retire it all. Balance-Sheet Safety scores it 75/100.

The share count fell 16.8% between FY2010 and FY2025 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 70/100.

Put together: Balance-Sheet Safety is the strongest of the four filters (75/100) and Returns on Capital the weakest (14/100), which is how SCSC lands at 41/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$3.0B FY2025

Gross marginRevenue kept after cost of goods13.4% FY2025

Return on invested capitalOperating profit on the capital employed7.0% FY2025

Owner earningsCash an owner could take out$93.5M FY2025

Gaps in a line mean that item isn’t in SCSC’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale40.6 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — SCSC has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Industrials context

#150 of 309 scored Industrials companies, ranked by Moat Score.

Nearest peers by Moat Score

#148NPWR NET Power Inc.40.8 out of 100, Shallow moatShallow moat
#149ZEO ZEO ENERGY CORP.40.8 out of 100, Shallow moatShallow moat
#151REZI Resideo Technologies, Inc.40.5 out of 100, Shallow moatShallow moat
#152WFRD Weatherford International plc40.4 out of 100, Shallow moatShallow moat

Compare SCSC with its nearest peers →All Industrials companies on the Index →

Common questions about SCSC

Does ScanSource, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores ScanSource, Inc. (SCSC) 40.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 25, returns on capital 14, balance-sheet safety 75, capital discipline 70.
Is SCSC stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $78.19 per share versus a recent price of $54.79 — 30% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has SCSC's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 40.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell SCSC. See the disclaimer.