INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - Nasdaq - US45765U1034 - Common Stock - Currency: USD
Overall NSIT gets a fundamental rating of 5 out of 10. We evaluated NSIT against 125 industry peers in the Electronic Equipment, Instruments & Components industry. NSIT has an excellent profitability rating, but there are some minor concerns on its financial health. NSIT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NSIT had positive earnings in the past year.
NSIT had a positive operating cash flow in the past year.
Each year in the past 5 years NSIT has been profitable.
NSIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NSIT (2.40%) is better than 61.60% of its industry peers.
NSIT's Return On Equity of 11.95% is amongst the best of the industry. NSIT outperforms 82.40% of its industry peers.
NSIT has a Return On Invested Capital of 8.17%. This is in the better half of the industry: NSIT outperforms 78.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSIT is above the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 11.95% | ||
| ROIC | 8.17% |
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
With a decent Profit Margin value of 2.26%, NSIT is doing good in the industry, outperforming 62.40% of the companies in the same industry.
In the last couple of years the Profit Margin of NSIT has grown nicely.
The Operating Margin of NSIT (4.59%) is better than 62.40% of its industry peers.
NSIT's Operating Margin has improved in the last couple of years.
The Gross Margin of NSIT (20.55%) is worse than 62.40% of its industry peers.
In the last couple of years the Gross Margin of NSIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.59% | ||
| PM (TTM) | 2.26% | ||
| GM | 20.55% |
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.
Compared to 1 year ago, NSIT has less shares outstanding
NSIT has less shares outstanding than it did 5 years ago.
NSIT has a better debt/assets ratio than last year.
2.2 Solvency
NSIT has an Altman-Z score of 2.07. 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.
NSIT has a worse Altman-Z score (2.07) than 69.60% of its industry peers.
The Debt to FCF ratio of NSIT is 2.31, which is a good value as it means it would take NSIT, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, NSIT is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that NSIT is somewhat dependend on debt financing.
NSIT has a worse Debt to Equity ratio (0.60) than 79.20% 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 | 0.6 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.01
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.23 indicates that NSIT should not have too much problems paying its short term obligations.
NSIT's Current ratio of 1.23 is on the low side compared to the rest of the industry. NSIT is outperformed by 86.40% of its industry peers.
A Quick Ratio of 1.19 indicates that NSIT should not have too much problems paying its short term obligations.
NSIT's Quick ratio of 1.19 is on the low side compared to the rest of the industry. NSIT is outperformed by 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for NSIT have decreased by -8.85% in the last year.
The Earnings Per Share has been growing by 12.97% on average over the past years. This is quite good.
NSIT shows a decrease in Revenue. In the last year, the revenue decreased by -8.73%.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)-8.85%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-13.08%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-11.6%
3.2 Future
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
The Revenue is expected to grow by 4.03% on average over the next years.
EPS Next Y3.5%
EPS Next 2Y6.16%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y2.44%
Revenue Next 3Y4.03%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.24 indicates a correct valuation of NSIT.
88.80% of the companies in the same industry are more expensive than NSIT, based on the Price/Earnings ratio.
NSIT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 13.09, which indicates a correct valuation of NSIT.
91.20% of the companies in the same industry are more expensive than NSIT, based on the Price/Forward Earnings ratio.
NSIT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 84.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 90.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NSIT may justify a higher PE ratio.
PEG (NY)4.35
PEG (5Y)1.17
EPS Next 2Y6.16%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
NSIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
142.76
+0.96 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change-0.91%
Ins Owners1.05%
Ins Owner Change7.69%
Market Cap4.56B
Analysts76.67
Price Target190.51 (33.45%)
Short Float %5.58%
Short Ratio5.46
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)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.48%
Max EPS beat(2)3.28%
EPS beat(4)2
Avg EPS beat(4)-4.98%
Min EPS beat(4)-14.42%
Max EPS beat(4)3.28%
EPS beat(8)3
Avg EPS beat(8)-0.21%
EPS beat(12)6
Avg EPS beat(12)3.59%
EPS beat(16)10
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-5.97%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-8.96%
Min Revenue beat(4)-14.08%
Max Revenue beat(4)-3.37%
Revenue beat(8)1
Avg Revenue beat(8)-6.95%
Revenue beat(12)2
Avg Revenue beat(12)-5.85%
Revenue beat(16)5
Avg Revenue beat(16)-3.03%
PT rev (1m)0%
PT rev (3m)-8.57%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.54 | ||
| P/FCF | 10.95 | ||
| P/OCF | 9.83 | ||
| P/B | 2.87 | ||
| P/tB | 16 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)9.37
EY6.56%
EPS(NY)10.91
Fwd EY7.64%
FCF(TTM)13.04
FCFY9.13%
OCF(TTM)14.52
OCFY10.17%
SpS263.88
BVpS49.83
TBVpS8.92
PEG (NY)4.35
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 11.95% | ||
| ROCE | 10.93% | ||
| ROIC | 8.17% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 15.14% | ||
| OM | 4.59% | ||
| PM (TTM) | 2.26% | ||
| GM | 20.55% | ||
| FCFM | 4.94% |
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-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 46.49% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.89% | ||
| Profit Quality | 218.89% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.07 |
F-Score5
WACC8.07%
ROIC/WACC1.01
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)-8.85%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-13.08%
EPS Next Y3.5%
EPS Next 2Y6.16%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-11.6%
Revenue Next Year0.2%
Revenue Next 2Y2.44%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
EBIT growth 1Y-15.1%
EBIT growth 3Y8.62%
EBIT growth 5Y10.39%
EBIT Next Year6.82%
EBIT Next 3Y9.55%
EBIT Next 5YN/A
FCF growth 1Y-14.73%
FCF growth 3Y73.82%
FCF growth 5Y58.38%
OCF growth 1Y-14.52%
OCF growth 3Y56.95%
OCF growth 5Y37.68%