INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - Nasdaq - US45765U1034 - Common Stock
We assign a fundamental rating of 5 out of 10 to NSIT. NSIT was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. NSIT scores excellent on profitability, but there are some minor concerns on its financial health. NSIT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NSIT was profitable.
In the past year NSIT had a positive cash flow from operations.
Each year in the past 5 years NSIT has been profitable.
Each year in the past 5 years NSIT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.16%, NSIT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of NSIT (17.17%) is better than 87.50% of its industry peers.
NSIT has a Return On Invested Capital of 10.11%. This is amongst the best in the industry. NSIT outperforms 81.67% of its industry peers.
NSIT had an Average Return On Invested Capital over the past 3 years of 12.13%. This is above the industry average of 9.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 17.17% | ||
| ROIC | 10.11% |
ROA(3y)4.88%
ROA(5y)4.49%
ROE(3y)15.96%
ROE(5y)14.89%
ROIC(3y)12.13%
ROIC(5y)11.02%
1.3 Margins
With a decent Profit Margin value of 3.42%, NSIT is doing good in the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NSIT has grown nicely.
With a decent Operating Margin value of 5.41%, NSIT is doing good in the industry, outperforming 65.83% of the companies in the same industry.
In the last couple of years the Operating Margin of NSIT has grown nicely.
NSIT has a Gross Margin of 19.88%. This is in the lower half of the industry: NSIT underperforms 67.50% of its industry peers.
In the last couple of years the Gross Margin of NSIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.41% | ||
| PM (TTM) | 3.42% | ||
| GM | 19.88% |
OM growth 3Y11.13%
OM growth 5Y7.12%
PM growth 3Y13.91%
PM growth 5Y5.77%
GM growth 3Y5.29%
GM growth 5Y5.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NSIT is creating some value.
The number of shares outstanding for NSIT has been reduced compared to 1 year ago.
NSIT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NSIT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that NSIT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, NSIT is doing worse than 65.00% of the companies in the same industry.
The Debt to FCF ratio of NSIT is 1.87, which is an excellent value as it means it would take NSIT, only 1.87 years of fcf income to pay off all of its debts.
NSIT has a Debt to FCF ratio of 1.87. This is in the better half of the industry: NSIT outperforms 75.00% of its industry peers.
NSIT has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
NSIT has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: NSIT underperforms 65.83% of its industry peers.
Even though the debt/equity ratio score it not favorable for NSIT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.46 |
ROIC/WACC1
WACC10.11%
2.3 Liquidity
NSIT has a Current Ratio of 1.24. This is a normal value and indicates that NSIT is financially healthy and should not expect problems in meeting its short term obligations.
NSIT has a worse Current ratio (1.24) than 89.17% of its industry peers.
NSIT has a Quick Ratio of 1.20. This is a normal value and indicates that NSIT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, NSIT is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.23% over the past year.
The Earnings Per Share has been growing by 15.97% on average over the past years. This is quite good.
The Revenue has decreased by -6.11% in the past year.
NSIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.32% yearly.
EPS 1Y (TTM)8.23%
EPS 3Y16.11%
EPS 5Y15.97%
EPS Q2Q%-7.59%
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y3.23%
Revenue growth 5Y5.32%
Sales Q2Q%-7.87%
3.2 Future
The Earnings Per Share is expected to grow by 7.90% on average over the next years.
NSIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.15% yearly.
EPS Next Y0.34%
EPS Next 2Y5.35%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue Next Year-5.95%
Revenue Next 2Y-1.01%
Revenue Next 3Y1.15%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.32, the valuation of NSIT can be described as rather expensive.
Based on the Price/Earnings ratio, NSIT is valued cheaper than 84.17% of the companies in the same industry.
NSIT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
NSIT is valuated correctly with a Price/Forward Earnings ratio of 16.11.
82.50% of the companies in the same industry are more expensive than NSIT, based on the Price/Forward Earnings ratio.
NSIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSIT indicates a somewhat cheap valuation: NSIT is cheaper than 79.17% of the companies listed in the same industry.
NSIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NSIT is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NSIT does not grow enough to justify the current Price/Earnings ratio.
NSIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)51.7
PEG (5Y)1.08
EPS Next 2Y5.35%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
No dividends for NSIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INSIGHT ENTERPRISES INC
NASDAQ:NSIT (1/22/2025, 2:29:47 PM)
173.22
+0.97 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.9%
Inst Owner Change0.63%
Ins Owners0.91%
Ins Owner Change0.28%
Market Cap5.50B
Analysts76.67
Price Target204.82 (18.24%)
Short Float %5.47%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.83%
Min EPS beat(2)-14.42%
Max EPS beat(2)-9.25%
EPS beat(4)1
Avg EPS beat(4)0.04%
Min EPS beat(4)-14.42%
Max EPS beat(4)28.23%
EPS beat(8)2
Avg EPS beat(8)0.7%
EPS beat(12)6
Avg EPS beat(12)4.36%
EPS beat(16)9
Avg EPS beat(16)4.18%
Revenue beat(2)0
Avg Revenue beat(2)-13.25%
Min Revenue beat(2)-14.08%
Max Revenue beat(2)-12.42%
Revenue beat(4)1
Avg Revenue beat(4)-8.47%
Min Revenue beat(4)-14.08%
Max Revenue beat(4)1.51%
Revenue beat(8)1
Avg Revenue beat(8)-7.88%
Revenue beat(12)4
Avg Revenue beat(12)-4.1%
Revenue beat(16)6
Avg Revenue beat(16)-2.07%
PT rev (1m)0%
PT rev (3m)-5.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 16.11 | ||
| P/S | 0.62 | ||
| P/FCF | 9.47 | ||
| P/OCF | 8.82 | ||
| P/B | 3.11 | ||
| P/tB | 12.83 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)10
EY5.77%
EPS(NY)10.76
Fwd EY6.21%
FCF(TTM)18.29
FCFY10.56%
OCF(TTM)19.63
OCFY11.33%
SpS279.13
BVpS55.61
TBVpS13.5
PEG (NY)51.7
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 17.17% | ||
| ROCE | 13.54% | ||
| ROIC | 10.11% | ||
| ROICexc | 11.1% | ||
| ROICexgc | 18.97% | ||
| OM | 5.41% | ||
| PM (TTM) | 3.42% | ||
| GM | 19.88% | ||
| FCFM | 6.55% |
ROA(3y)4.88%
ROA(5y)4.49%
ROE(3y)15.96%
ROE(5y)14.89%
ROIC(3y)12.13%
ROIC(5y)11.02%
ROICexc(3y)13.06%
ROICexc(5y)11.8%
ROICexgc(3y)20.08%
ROICexgc(5y)17.99%
ROCE(3y)16.25%
ROCE(5y)14.75%
ROICexcg growth 3Y6.67%
ROICexcg growth 5Y-1.23%
ROICexc growth 3Y3.73%
ROICexc growth 5Y-5.39%
OM growth 3Y11.13%
OM growth 5Y7.12%
PM growth 3Y13.91%
PM growth 5Y5.77%
GM growth 3Y5.29%
GM growth 5Y5.32%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 47.18% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.44% | ||
| Profit Quality | 191.58% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.46 |
F-Score5
WACC10.11%
ROIC/WACC1
Cap/Depr(3y)94.05%
Cap/Depr(5y)93.72%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.57%
Profit Quality(3y)88.97%
Profit Quality(5y)99.09%
High Growth Momentum
Growth
EPS 1Y (TTM)8.23%
EPS 3Y16.11%
EPS 5Y15.97%
EPS Q2Q%-7.59%
EPS Next Y0.34%
EPS Next 2Y5.35%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y3.23%
Revenue growth 5Y5.32%
Sales Q2Q%-7.87%
Revenue Next Year-5.95%
Revenue Next 2Y-1.01%
Revenue Next 3Y1.15%
Revenue Next 5YN/A
EBIT growth 1Y16.65%
EBIT growth 3Y14.72%
EBIT growth 5Y12.82%
EBIT Next Year7.28%
EBIT Next 3Y7.29%
EBIT Next 5YN/A
FCF growth 1Y7549.22%
FCF growth 3Y20.53%
FCF growth 5Y16.08%
OCF growth 1Y724.82%
OCF growth 3Y20.33%
OCF growth 5Y16.19%