INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
USA - NASDAQ:NSIT - US45765U1034 - Common Stock
109.47 USD
+1.36 (+1.26%)
109.47 USD
0 (0%)
Overall NSIT gets a fundamental rating of 5 out of 10. We evaluated NSIT against 123 industry peers in the Electronic Equipment, Instruments & Components industry. NSIT has an excellent profitability rating, but there are concerns on its financial health. NSIT is valued quite cheap, but it does not seem to be growing.
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.
Each year in the past 5 years NSIT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.71%, NSIT perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
With a decent Return On Equity value of 9.32%, NSIT is doing good in the industry, outperforming 71.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.88%, NSIT is doing good in the industry, outperforming 69.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NSIT is above the industry average of 9.33%.
The 3 year average ROIC (11.53%) for NSIT is well above the current ROIC(6.88%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 9.32% | ||
| ROIC | 6.88% |
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
Looking at the Profit Margin, with a value of 1.79%, NSIT is in line with its industry, outperforming 56.10% of the companies in the same industry.
NSIT's Profit Margin has improved in the last couple of years.
NSIT's Operating Margin of 4.23% is in line compared to the rest of the industry. NSIT outperforms 59.35% of its industry peers.
NSIT's Operating Margin has improved in the last couple of years.
The Gross Margin of NSIT (20.59%) is worse than 65.85% of its industry peers.
In the last couple of years the Gross Margin of NSIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.23% | ||
| PM (TTM) | 1.79% | ||
| GM | 20.59% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NSIT is still creating some value.
The number of shares outstanding for NSIT has been reduced compared to 1 year ago.
Compared to 5 years ago, NSIT has less shares outstanding
NSIT has a better debt/assets ratio than last year.
2.2 Solvency
NSIT has an Altman-Z score of 1.81. This is a bad value and indicates that NSIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.81, NSIT is not doing good in the industry: 72.36% of the companies in the same industry are doing better.
NSIT has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as NSIT would need 6.60 years to pay back of all of its debts.
The Debt to FCF ratio of NSIT (6.60) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.83 indicates that NSIT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, NSIT is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.8
WACC8.62%
2.3 Liquidity
NSIT has a Current Ratio of 1.29. 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 Current ratio of 1.29. This is amonst the worse of the industry: NSIT underperforms 82.11% of its industry peers.
NSIT has a Quick Ratio of 1.26. 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 Quick ratio (1.26) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NSIT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.06%.
NSIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.97% yearly.
Looking at the last year, NSIT shows a decrease in Revenue. The Revenue has decreased by -7.61% in the last year.
NSIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)-8.06%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-0.41%
Revenue 1Y (TTM)-7.61%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-3.25%
3.2 Future
The Earnings Per Share is expected to grow by 7.20% on average over the next years.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y2.59%
EPS Next 2Y6.23%
EPS Next 3Y7.2%
EPS Next 5YN/A
Revenue Next Year-2.5%
Revenue Next 2Y1.16%
Revenue Next 3Y2.37%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NSIT is valuated reasonably with a Price/Earnings ratio of 11.70.
Based on the Price/Earnings ratio, NSIT is valued cheaper than 95.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of NSIT to the average of the S&P500 Index (27.69), we can say NSIT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.02, which indicates a very decent valuation of NSIT.
95.94% of the companies in the same industry are more expensive than NSIT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NSIT to the average of the S&P500 Index (23.18), we can say NSIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NSIT is valued cheaply inside the industry as 86.18% of the companies are valued more expensively.
NSIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NSIT is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.16 | ||
| EV/EBITDA | 9.68 |
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)4.51
PEG (5Y)0.9
EPS Next 2Y6.23%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
NSIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.47
+1.36 (+1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.18%
Inst Owner Change-0.58%
Ins Owners1.07%
Ins Owner Change1.01%
Market Cap3.45B
Analysts80
Price Target180.23 (64.64%)
Short Float %5.15%
Short Ratio4.29
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)-0.99%
Min EPS beat(2)-2.46%
Max EPS beat(2)0.48%
EPS beat(4)2
Avg EPS beat(4)-1.99%
Min EPS beat(4)-9.25%
Max EPS beat(4)3.28%
EPS beat(8)3
Avg EPS beat(8)0.16%
EPS beat(12)5
Avg EPS beat(12)0.67%
EPS beat(16)9
Avg EPS beat(16)3.94%
Revenue beat(2)0
Avg Revenue beat(2)-5.28%
Min Revenue beat(2)-5.97%
Max Revenue beat(2)-4.59%
Revenue beat(4)0
Avg Revenue beat(4)-6.59%
Min Revenue beat(4)-12.42%
Max Revenue beat(4)-3.37%
Revenue beat(8)1
Avg Revenue beat(8)-6.7%
Revenue beat(12)1
Avg Revenue beat(12)-6.75%
Revenue beat(16)5
Avg Revenue beat(16)-3.26%
PT rev (1m)4.85%
PT rev (3m)-5.39%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.02 | ||
| P/S | 0.41 | ||
| P/FCF | 17.16 | ||
| P/OCF | 14.3 | ||
| P/B | 2.15 | ||
| P/tB | 11.24 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)9.36
EY8.55%
EPS(NY)10.92
Fwd EY9.98%
FCF(TTM)6.38
FCFY5.83%
OCF(TTM)7.65
OCFY6.99%
SpS265.51
BVpS51.02
TBVpS9.74
PEG (NY)4.51
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 9.32% | ||
| ROCE | 9.21% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.49% | ||
| ROICexgc | 11.86% | ||
| OM | 4.23% | ||
| PM (TTM) | 1.79% | ||
| GM | 20.59% | ||
| FCFM | 2.4% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 38.8% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.76% | ||
| Profit Quality | 134.14% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.81 |
F-Score6
WACC8.62%
ROIC/WACC0.8
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)-8.06%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-0.41%
EPS Next Y2.59%
EPS Next 2Y6.23%
EPS Next 3Y7.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.61%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-3.25%
Revenue Next Year-2.5%
Revenue Next 2Y1.16%
Revenue Next 3Y2.37%
Revenue Next 5YN/A
EBIT growth 1Y-25.91%
EBIT growth 3Y8.62%
EBIT growth 5Y10.39%
EBIT Next Year5.1%
EBIT Next 3Y6.58%
EBIT Next 5YN/A
FCF growth 1Y-70.96%
FCF growth 3Y73.82%
FCF growth 5Y58.38%
OCF growth 1Y-66.92%
OCF growth 3Y56.95%
OCF growth 5Y37.68%