INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - Nasdaq - US45765U1034 - Common Stock - Currency: USD
NSIT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
In the past year NSIT had a positive cash flow from operations.
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
NSIT's Return On Assets of 3.35% is fine compared to the rest of the industry. NSIT outperforms 66.13% of its industry peers.
The Return On Equity of NSIT (14.10%) is better than 82.26% of its industry peers.
The Return On Invested Capital of NSIT (9.50%) is better than 82.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NSIT is above the industry average of 9.15%.
| 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
NSIT's Profit Margin of 2.87% is fine compared to the rest of the industry. NSIT outperforms 61.29% of its industry peers.
In the last couple of years the Profit Margin of NSIT has grown nicely.
With a decent Operating Margin value of 4.86%, NSIT is doing good in the industry, outperforming 66.13% of the companies in the same industry.
NSIT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.30%, NSIT is not doing good in the industry: 65.32% of the companies in the same industry are doing better.
NSIT's Gross Margin has improved in the last couple of years.
| 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.
NSIT has less shares outstanding than it did 1 year ago.
NSIT has less shares outstanding than it did 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 2.20. 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.
The Altman-Z score of NSIT (2.20) is worse than 61.29% of its industry peers.
The Debt to FCF ratio of NSIT is 1.47, which is an excellent value as it means it would take NSIT, only 1.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.47, NSIT is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
NSIT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
NSIT has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: NSIT underperforms 60.48% 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 | 0.3 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.13
WACC8.4%
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 87.90% 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.
NSIT's Quick ratio of 1.15 is on the low side compared to the rest of the industry. NSIT is outperformed by 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
NSIT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.10%.
Measured over the past years, NSIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.97% on average per year.
The Revenue has decreased by -5.17% in the past year.
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
Based on estimates for the next years, NSIT will show a small growth in Earnings Per Share. The EPS will grow by 5.78% on average per year.
NSIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y3.45%
EPS Next 2Y6.04%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue Next Year0.52%
Revenue Next 2Y2.65%
Revenue Next 3Y4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.70, the valuation of NSIT can be described as correct.
Based on the Price/Earnings ratio, NSIT is valued cheaply inside the industry as 84.68% of the companies are valued more expensively.
NSIT is valuated cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
NSIT is valuated correctly with a Price/Forward Earnings ratio of 13.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 80.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. NSIT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
79.84% of the companies in the same industry are more expensive than NSIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NSIT is valued cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 9.28 |
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)3.98
PEG (5Y)1.06
EPS Next 2Y6.04%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
No dividends for NSIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
132.6
+0.52 (+0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.5%
Inst Owner Change0.09%
Ins Owners0.98%
Ins Owner Change7.12%
Market Cap4.23B
Analysts76.67
Price Target208.36 (57.13%)
Short Float %3.91%
Short Ratio3.07
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)-2.1%
PT rev (3m)1.73%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-13.27%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.44%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 13.24 | ||
| P/S | 0.49 | ||
| P/FCF | 7.22 | ||
| P/OCF | 6.69 | ||
| P/B | 2.39 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)9.68
EY7.3%
EPS(NY)10.01
Fwd EY7.55%
FCF(TTM)18.37
FCFY13.85%
OCF(TTM)19.83
OCFY14.96%
SpS272.7
BVpS55.49
TBVpS14.12
PEG (NY)3.98
PEG (5Y)1.06
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 | 12 | ||
| Cash Conversion | 121.47% | ||
| Profit Quality | 234.72% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.2 |
F-Score6
WACC8.4%
ROIC/WACC1.13
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 Y3.45%
EPS Next 2Y6.04%
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 Year0.52%
Revenue Next 2Y2.65%
Revenue Next 3Y4%
Revenue Next 5YN/A
EBIT growth 1Y-2.42%
EBIT growth 3Y8.62%
EBIT growth 5Y10.39%
EBIT Next Year13.41%
EBIT Next 3Y9.55%
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%