ScanSourceSCSC -0.87%73 Return-on-Tangible-Equity is 11.38% as of Mar. 2026, which is 1% below its 10-year median of 11.46. 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 2,378 Hardware companies, ScanSource ranks better than 72.67% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ScanSource's annualized net income for the quarter that ended in Mar. 2026 was $68 Mil. ScanSource's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $594 Mil. Therefore, ScanSource's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.38%.
The historical rank and industry rank for ScanSource's Return-on-Tangible-Equity or its related term are showing as below:
SCSC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -46.73 Med: 11.46 Max: 19.41
Current: 12.11
During the past 13 years, ScanSource's highest Return-on-Tangible-Equity was 19.41%. The lowest was -46.73%. And the median was 11.46%.
SCSC's Return-on-Tangible-Equity is ranked better than 72.67% of 2378
companies
in the Hardware industry
Industry Median: 5.25
vs SCSC: 12.11
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ScanSource Return-on-Tangible-Equity Related Terms
ScanSource Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ScanSource's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Electronics & Computer Distribution subindustry, ScanSource's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, ScanSource's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ScanSource's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.38% mean?
ScanSource (SCSC) has a Return-on-Tangible-Equity of 11.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ScanSource and its competitors. This is near median its historical median of 11.46. According to the industry distribution chart, ScanSource ranks #650 out of 2378 companies in the Hardware industry, placing it in the top 27.3%.
Is ScanSource's Return-on-Tangible-Equity too high?
ScanSource's current Return-on-Tangible-Equity of 11.38% is near median its 10-year median of 11.46. The Hardware industry median Return-on-Tangible-Equity is 5.25. ScanSource's value of 11.38% is 116.8% above this industry median. Based on the distribution chart, ScanSource ranks #650 out of 2378 companies in the Hardware industry, which is above the industry midpoint. 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 Return-on-Tangible-Equity compare to NLST and EACO?
According to the Hardware industry distribution chart, ScanSource ranks #650 out of 2378 companies for Return-on-Tangible-Equity. This puts ScanSource in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.25. ScanSource's value of 11.38% is 116.8% above this benchmark. While the company's 10-year median is 11.46 vs. the industry median of 5.25, 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 Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.25, based on 2,378 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ScanSource's current Return-on-Tangible-Equity of 11.38% is 116.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ScanSource and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ScanSource's current Return-on-Tangible-Equity is 11.38%, which is near median its own 10-year median of 11.46. 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 $50.09 — trading 14.9% above its estimated fair value. The current Return-on-Tangible-Equity is 11.38%, which is near median its 10-year median of 11.46 and 116.8% above the Hardware industry median of 5.25. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ScanSource (SCSC), the current Return-on-Tangible-Equity is 11.38% 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 $50.09 is trading 14.9% above its estimated GF Value™ of $43.61.
GuruFocus considers ScanSource to be Modestly Overvalued.
Key valuation signals for SCSC:
Return-on-Tangible-Equity: 11.38% (near median its 10-year median of 11.46)
GF Value™: $43.61 vs. price of $50.09 (14.9% above fair value)
Industry Position: 116.8% above the Hardware median (#650 of 2378)
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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