ScanSourceSCSC +1.06%73 Gross Margin % is 13.97% as of Mar. 2026, which is 19% above its 10-year median of 11.77. GuruFocus rates SCSC with a GF Score™ of 73/100 and a GF Value™ of $43.61 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,450 Hardware companies, ScanSource ranks worse than 77.1% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ScanSource's Gross Profit for the
three
months ended in Mar. 2026 was $107 Mil. ScanSource's Revenue for the
three
months ended in Mar. 2026 was $767 Mil. Therefore, ScanSource's Gross Margin % for the quarter that ended in Mar. 2026 was 13.97%.
The historical rank and industry rank for ScanSource's Gross Margin % or its related term are showing as below:
SCSC'
s Gross Margin % Range Over the Past 10 Years
Min: 10.04 Med: 11.77 Max: 13.7
Current: 13.7
During the past 13 years, the highestGross Margin % of ScanSource was 13.70%. The lowest was 10.04%. And the median was 11.77%.
SCSC's Gross Margin % is ranked worse than 77.1% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs SCSC: 13.70
ScanSource had a gross margin of 13.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ScanSource was 2.80% per year.
ScanSource (NAS:SCSC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ScanSource had a gross margin of 13.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
ScanSource Gross Margin % Related Terms
ScanSource Gross Margin % Historical Data
* Premium members only.
The historical data trend for ScanSource's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SCSC vs NLST, EACO, CLMB: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, ScanSource's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ScanSource Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, ScanSource's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ScanSource's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ScanSource (SCSC) has a Gross Margin % of 13.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ScanSource and its competitors. This is 19% above median its historical median of 11.77. Over the past decade, ScanSource's Gross Margin % has ranged from 10.04 to 13.70. According to the industry distribution chart, ScanSource ranks #1889 out of 2450 companies in the Hardware industry, placing it in the top 77.1%.
Is ScanSource's Gross Margin % too high?
ScanSource's current Gross Margin % of 13.97% is 19% above median its 10-year median of 11.77. Over the past 10 years, this metric has ranged from a low of 10.04 to a high of 13.70. The Hardware industry median Gross Margin % is 24.53. ScanSource's value of 13.97% is 43% below this industry median. Based on the distribution chart, ScanSource ranks #1889 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, ScanSource has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ScanSource's Gross Margin % compare to NLST and EACO?
According to the Hardware industry distribution chart, ScanSource ranks #1889 out of 2450 companies for Gross Margin %. This places ScanSource in the lower half of its industry. The industry median Gross Margin % is 24.53. ScanSource's value of 13.97% is 43% below this benchmark. Historically, ScanSource's own Gross Margin % has ranged from 10.04 to 13.70 over the past decade. While the company's 10-year median is 11.77 vs. the industry median of 24.53, ScanSource has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ScanSource's current Gross Margin % of 13.97% is 43% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on ScanSource and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ScanSource's current Gross Margin % is 13.97%, which is 19% above median its own 10-year median of 11.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ScanSource stock overvalued right now?
Based on GuruFocus' analysis, ScanSource (SCSC) is currently considered Modestly Overvalued. The stock's GF Value™ is $43.61, compared to a current price of $49.69 — trading 13.9% above its estimated fair value. The current Gross Margin % is 13.97%, which is 19% above median its 10-year median of 11.77 and 43% below the Hardware industry median of 24.53. ScanSource's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For ScanSource (SCSC), the current Gross Margin % is 13.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ScanSource (SCSC) Overvalued in 2026?
Based on GuruFocus' analysis, ScanSource stock appears to be overvalued.
The current stock price of $49.69 is trading 13.9% above its estimated GF Value™ of $43.61.
GuruFocus considers ScanSource to be Modestly Overvalued.
Key valuation signals for SCSC:
Gross Margin %: 13.97% (19% above median its 10-year median of 11.77)
GF Value™: $43.61 vs. price of $49.69 (13.9% above fair value)
Industry Position: 43% below the Hardware median (#1889 of 2450)
No single metric tells the full story. See the SCSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ScanSource Inc provides value-added services for technology manufacturers and sells to resellers in specialty technology markets. The firm's operations are organized in two segments: Specialty Technology Solutions and Intelisys & Advisory Segment. It generates maximum revenue from the Specialty Technology Solutions segment. The Specialty Technology Solutions segment includes the company's business in mobility and barcode, POS, payments, security and networking technologies. Geographically, it derives a majority of revenue from the United States and Canada, and also has its presence in Brazil, and other countries.
73GF Score
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