ScanSource, Inc. SCSC

Competitive advantage analysis · technology

Corporate Default
Overall moat score
60/100
Moderate

About ScanSource, Inc.

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and barcode, including mobile computing; barcode scanners and imagers, radio frequency identification devices, barcode printing and related services; point of sale systems and integrated … Full SCSC analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 69.1th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.99), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.30), raising questions about short-term obligations.
  • Scale Without Profitability Despite scale, profitability lags peers (score 0.37), suggesting limited competitive advantage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
57

Where SCSC ranks in Technology: Semiconductors, Hardware & Components

ScanSource, Inc. ranks #102 of 304 scored companies in Technology: Semiconductors, Hardware & Components by moat score — the top 34%. The widest moat in the group is Arista Networks, Inc. (ANET) at 86/100.

Moat scores for companies ranked near SCSC in Technology: Semiconductors, Hardware & Components
# Company Moat score Rating
98 Entegris, Inc. ENTG 60/100 Moderate
99 Qorvo, Inc. QRVO 60/100 Moderate
100 Knowles Corporation KN 60/100 Moderate
101 CommScope Holding Company, Inc. COMM 60/100 Moderate
102 ScanSource, Inc. SCSC 60/100 Moderate
103 MKS Instruments, Inc. MKSI 60/100 Moderate
104 Neonode Inc. NEON 59/100 Moderate
105 Jabil Inc. JBL 59/100 Moderate
106 Advanced Micro Devices, Inc. AMD 59/100 Moderate

See every General Corporate company ranked by moat score →

How SCSC scores on the Corporate Default defenses

Pricing Power

Score 57 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 70 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 63 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 74 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 49 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 45 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SCSC's moat

What is ScanSource, Inc.'s moat score?

ScanSource, Inc. (SCSC) scores 60 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #102 of 304 scored companies in Technology: Semiconductors, Hardware & Components, the top 34%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 303 companies in Technology: Semiconductors, Hardware & Components. Its strongest defense is Capital Efficiency (74/100) and its weakest is Scale & Market Position (45/100).

How does ScanSource, Inc. compare with other Technology: Semiconductors, Hardware & Components companies?

ScanSource, Inc. ranks #102 of 304 scored companies in Technology: Semiconductors, Hardware & Components by moat score. The widest moat in Technology: Semiconductors, Hardware & Components is Arista Networks, Inc. (ANET) at 86/100. The companies ranked closest are CommScope Holding Company, Inc. (COMM) at 60 just above it and MKS Instruments, Inc. (MKSI) at 60 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 303 companies in Technology: Semiconductors, Hardware & Components. The defenses are then weighted to produce the overall score out of 100.

Why is ScanSource, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for ScanSource, Inc.?

The Corporate Default template measures 6 defenses, and SCSC scores: Pricing Power (57), Cost Advantage (70), Customer Stickiness (63), Capital Efficiency (74), Resilience (49), Scale & Market Position (45). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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