ScanSourceFRA:SC3 +3.35%70 Interest Coverage is 18.08 as of Mar. 2026, which is 66% above its 10-year median of 10.91. GuruFocus rates FRA:SC3 with a GF Score™ of 70/100 and a GF Value™ of €37.91 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,671 Hardware companies, ScanSource ranks worse than 51.35% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. ScanSource's
Operating Income
for the
three
months ended in Mar. 2026 was €20 Mil. ScanSource's Interest Expense for the
three
months ended in Mar. 2026 was €-1 Mil.
ScanSource's interest coverage for the quarter that ended in Mar. 2026 was 18.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ScanSource's Interest Coverage or its related term are showing as below:
FRA:SC3'
s Interest Coverage Range Over the Past 10 Years
Min: 5.16 Med: 10.91 Max: 46.22
Current: 13.15
FRA:SC3's Interest Coverage is ranked worse than 51.35% of 1671
companies
in the Hardware industry
Industry Median: 13.79
vs FRA:SC3: 13.15
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
ScanSource Interest Coverage Related Terms
ScanSource Interest Coverage Historical Data
* Premium members only.
The historical data trend for ScanSource's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:SC3 vs NLST, EACO, CLMB: Interest Coverage Comparison
For the Electronics & Computer Distribution subindustry, ScanSource's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, ScanSource's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ScanSource's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
ScanSource (FRA:SC3) has a Interest Coverage of 18.08 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ScanSource and its competitors. This is 66% above median its historical median of 10.91. Over the past decade, ScanSource's Interest Coverage has ranged from 5.16 to 46.22. According to the industry distribution chart, ScanSource ranks #858 out of 1671 companies in the Hardware industry, placing it in the top 51.3%.
Is ScanSource's Interest Coverage too high?
ScanSource's current Interest Coverage of 18.08 is 66% above median its 10-year median of 10.91. Over the past 10 years, this metric has ranged from a low of 5.16 to a high of 46.22. The Hardware industry median Interest Coverage is 13.79. ScanSource's value of 18.08 is 31.1% above this industry median. Based on the distribution chart, ScanSource ranks #858 out of 1671 companies in the Hardware industry, which is below the industry midpoint. Overall, ScanSource has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ScanSource's Interest Coverage compare to NLST and EACO?
According to the Hardware industry distribution chart, ScanSource ranks #858 out of 1671 companies for Interest Coverage. This places ScanSource in the lower half of its industry. The industry median Interest Coverage is 13.79. ScanSource's value of 18.08 is 31.1% above this benchmark. Historically, ScanSource's own Interest Coverage has ranged from 5.16 to 46.22 over the past decade. While the company's 10-year median is 10.91 vs. the industry median of 13.79, ScanSource has consistently been above 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 Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ScanSource's current Interest Coverage of 18.08 is 31.1% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ScanSource and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ScanSource's current Interest Coverage is 18.08, which is 66% above median its own 10-year median of 10.91. 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 (FRA:SC3) is currently considered Modestly Overvalued. The stock's GF Value™ is €37.91, compared to a current price of €43.20 — trading 14% above its estimated fair value. The current Interest Coverage is 18.08, which is 66% above median its 10-year median of 10.91 and 31.1% above the Hardware industry median of 13.79. ScanSource's overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ScanSource (FRA:SC3), the current Interest Coverage is 18.08 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 (FRA:SC3) Overvalued in 2026?
Based on GuruFocus' analysis, ScanSource stock appears to be overvalued.
The current stock price of €43.20 is trading 14% above its estimated GF Value™ of €37.91.
GuruFocus considers ScanSource to be Modestly Overvalued.
Key valuation signals for FRA:SC3:
Interest Coverage: 18.08 (66% above median its 10-year median of 10.91)
GF Value™: €37.91 vs. price of €43.20 (14% above fair value)
Industry Position: 31.1% above the Hardware median (#858 of 1671)
No single metric tells the full story. See the FRA:SC3 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.
70GF Score
Get the complete analysis for FRA:SC3
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:SC3 has been successfully added to your 
