INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - Nasdaq - US45765U1034 - Common Stock - Currency: USD
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. While NSIT has a great profitability rating, 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.
NSIT had a positive operating cash flow in the past year.
In the past 5 years NSIT has always been profitable.
In the past 5 years NSIT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NSIT (3.35%) is better than 65.00% of its industry peers.
NSIT has a better Return On Equity (14.10%) than 80.83% of its industry peers.
NSIT's Return On Invested Capital of 9.50% is amongst the best of the industry. NSIT outperforms 80.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSIT is above the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 14.1% | ||
| ROIC | 9.5% |
ROA(3y)4.44%
ROA(5y)4.4%
ROE(3y)15.82%
ROE(5y)14.97%
ROIC(3y)11.53%
ROIC(5y)11.25%
1.3 Margins
The Profit Margin of NSIT (2.87%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NSIT has grown nicely.
NSIT's Operating Margin of 4.86% is fine compared to the rest of the industry. NSIT outperforms 65.83% of its industry peers.
In the last couple of years the Operating Margin of NSIT has grown nicely.
NSIT has a Gross Margin of 20.30%. This is in the lower half of the industry: NSIT underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of NSIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 2.87% | ||
| GM | 20.3% |
OM growth 3Y11.59%
OM growth 5Y7.81%
PM growth 3Y7.33%
PM growth 5Y6.89%
GM growth 3Y9.77%
GM growth 5Y6.63%
2. Health
2.1 Basic Checks
NSIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NSIT has been reduced compared to 1 year ago.
The number of shares outstanding for NSIT has been reduced compared to 5 years ago.
The debt/assets ratio for NSIT has been reduced compared to a year ago.
2.2 Solvency
NSIT has an Altman-Z score of 2.31. This is not the best score and indicates that NSIT is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.31, NSIT is doing worse than 61.67% of the companies in the same industry.
NSIT has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
NSIT has a Debt to FCF ratio of 1.47. This is in the better half of the industry: NSIT outperforms 77.50% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that NSIT is not too dependend on debt financing.
NSIT has a worse Debt to Equity ratio (0.30) than 60.83% of its industry peers.
Although NSIT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.14
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.18 indicates that NSIT should not have too much problems paying its short term obligations.
NSIT's Current ratio of 1.18 is on the low side compared to the rest of the industry. NSIT is outperformed by 88.33% of its industry peers.
NSIT has a Quick Ratio of 1.15. This is a normal value and indicates that NSIT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, NSIT is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for NSIT have decreased by -0.10% in the last year.
NSIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.97% yearly.
NSIT shows a decrease in Revenue. In the last year, the revenue decreased by -5.17%.
Measured over the past years, NSIT shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
EPS 1Y (TTM)-0.1%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-10.74%
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-7.31%
3.2 Future
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
Based on estimates for the next years, NSIT will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y6.94%
EPS Next 2Y8.04%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.62, the valuation of NSIT can be described as correct.
NSIT's Price/Earnings ratio is rather cheap when compared to the industry. NSIT is cheaper than 85.00% of the companies in the same industry.
NSIT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.54, NSIT is valued correctly.
NSIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NSIT is cheaper than 82.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, NSIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
77.50% of the companies in the same industry are more expensive than NSIT, based on the Enterprise Value to EBITDA ratio.
92.50% of the companies in the same industry are more expensive than NSIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | 11.28 |
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.
The decent profitability rating of NSIT may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)1.28
EPS Next 2Y8.04%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
NSIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
160.87
-5.13 (-3.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.5%
Inst Owner Change-2.39%
Ins Owners0.98%
Ins Owner Change2.77%
Market Cap5.11B
Analysts78.18
Price Target212.84 (32.31%)
Short Float %7.57%
Short Ratio6.03
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)1
Avg EPS beat(2)-2.99%
Min EPS beat(2)-9.25%
Max EPS beat(2)3.28%
EPS beat(4)2
Avg EPS beat(4)1.96%
Min EPS beat(4)-14.42%
Max EPS beat(4)28.23%
EPS beat(8)2
Avg EPS beat(8)-1.03%
EPS beat(12)6
Avg EPS beat(12)4.61%
EPS beat(16)9
Avg EPS beat(16)3.42%
Revenue beat(2)0
Avg Revenue beat(2)-7.9%
Min Revenue beat(2)-12.42%
Max Revenue beat(2)-3.37%
Revenue beat(4)1
Avg Revenue beat(4)-7.09%
Min Revenue beat(4)-14.08%
Max Revenue beat(4)1.51%
Revenue beat(8)1
Avg Revenue beat(8)-7.54%
Revenue beat(12)3
Avg Revenue beat(12)-4.62%
Revenue beat(16)5
Avg Revenue beat(16)-2.67%
PT rev (1m)1.34%
PT rev (3m)-4.61%
EPS NQ rev (1m)-10.97%
EPS NQ rev (3m)-15.55%
EPS NY rev (1m)-3.75%
EPS NY rev (3m)-9.51%
Revenue NQ rev (1m)-6.44%
Revenue NQ rev (3m)-13.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 15.54 | ||
| P/S | 0.59 | ||
| P/FCF | 8.72 | ||
| P/OCF | 8.07 | ||
| P/B | 2.89 | ||
| P/tB | 11.34 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)9.68
EY6.02%
EPS(NY)10.35
Fwd EY6.44%
FCF(TTM)18.45
FCFY11.47%
OCF(TTM)19.93
OCFY12.39%
SpS273.98
BVpS55.75
TBVpS14.19
PEG (NY)2.39
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 14.1% | ||
| ROCE | 12.71% | ||
| ROIC | 9.5% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 18.09% | ||
| OM | 4.86% | ||
| PM (TTM) | 2.87% | ||
| GM | 20.3% | ||
| FCFM | 6.74% |
ROA(3y)4.44%
ROA(5y)4.4%
ROE(3y)15.82%
ROE(5y)14.97%
ROIC(3y)11.53%
ROIC(5y)11.25%
ROICexc(3y)12.54%
ROICexc(5y)12.1%
ROICexgc(3y)20.37%
ROICexgc(5y)19.03%
ROCE(3y)15.43%
ROCE(5y)15.05%
ROICexcg growth 3Y1.53%
ROICexcg growth 5Y6.87%
ROICexc growth 3Y-4.73%
ROICexc growth 5Y3.1%
OM growth 3Y11.59%
OM growth 5Y7.81%
PM growth 3Y7.33%
PM growth 5Y6.89%
GM growth 3Y9.77%
GM growth 5Y6.63%
F-Score6
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 47.67% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.47% | ||
| Profit Quality | 234.72% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.31 |
F-Score6
WACC8.3%
ROIC/WACC1.14
Cap/Depr(3y)78.59%
Cap/Depr(5y)73.34%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.5%
Profit Quality(3y)150.22%
Profit Quality(5y)138.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.1%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-10.74%
EPS Next Y6.94%
EPS Next 2Y8.04%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-7.31%
Revenue Next Year4.27%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.42%
EBIT growth 3Y8.62%
EBIT growth 5Y10.39%
EBIT Next Year18.01%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1%
FCF growth 3Y73.82%
FCF growth 5Y58.38%
OCF growth 1Y2.15%
OCF growth 3Y56.95%
OCF growth 5Y37.68%