81.475 USD
-2.72 (-3.22%)
We assign a fundamental rating of 5 out of 10 to NSIT. NSIT was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While NSIT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NSIT has a bad growth rate and is valued cheaply.
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.
- NSIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of NSIT (1.60%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 9.01%, NSIT is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
- NSIT has a Return On Invested Capital of 6.78%. This is in the better half of the industry: NSIT outperforms 70.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NSIT is above the industry average of 8.87%.
- The 3 year average ROIC (11.53%) for NSIT is well above the current ROIC(6.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.01% | ||
| ROIC | 6.78% |
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 has a Profit Margin (1.72%) which is in line with its industry peers.
- NSIT's Profit Margin has improved in the last couple of years.
- The Operating Margin of NSIT (4.26%) is better than 60.98% of its industry peers.
- In the last couple of years the Operating Margin of NSIT has grown nicely.
- The Gross Margin of NSIT (20.83%) is worse than 64.23% of its industry peers.
- NSIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 1.72% | ||
| GM | 20.83% |
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.
- Compared to 1 year ago, NSIT has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.70, we must say that NSIT is in the distress zone and has some risk of bankruptcy.
- NSIT has a worse Altman-Z score (1.70) than 69.92% of its industry peers.
- NSIT has a debt to FCF ratio of 4.18. This is a neutral value as NSIT would need 4.18 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.18, NSIT is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
- A Debt/Equity ratio of 0.88 indicates that NSIT is somewhat dependend on debt financing.
- The Debt to Equity ratio of NSIT (0.88) is worse than 86.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.92
WACC7.35%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that NSIT should not have too much problems paying its short term obligations.
- NSIT has a worse Current ratio (1.30) than 80.49% of its industry peers.
- A Quick Ratio of 1.27 indicates that NSIT should not have too much problems paying its short term obligations.
- The Quick ratio of NSIT (1.27) is worse than 65.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- NSIT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.00%.
- NSIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.97% yearly.
- The Revenue has decreased by -6.69% in the past year.
- The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)-4%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%10.96%
Revenue 1Y (TTM)-6.69%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-4.03%
3.2 Future
- NSIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.21% yearly.
- NSIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
EPS Next Y1.65%
EPS Next 2Y5.26%
EPS Next 3Y5.21%
EPS Next 5YN/A
Revenue Next Year-5.41%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.61%
Revenue Next 5Y0.43%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.49, the valuation of NSIT can be described as reasonable.
- 95.94% of the companies in the same industry are more expensive than NSIT, based on the Price/Earnings ratio.
- NSIT is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- NSIT is valuated cheaply with a Price/Forward Earnings ratio of 7.60.
- Based on the Price/Forward Earnings ratio, NSIT is valued cheaper than 96.75% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NSIT to the average of the S&P500 Index (25.83), we can say NSIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NSIT is valued cheaply inside the industry as 94.31% 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 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 7.57 |
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)5.16
PEG (5Y)0.65
EPS Next 2Y5.26%
EPS Next 3Y5.21%
5. Dividend
5.1 Amount
- NSIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
INSIGHT ENTERPRISES INC / NSIT FAQ
Can you provide the ChartMill fundamental rating for INSIGHT ENTERPRISES INC?
ChartMill assigns a fundamental rating of 5 / 10 to NSIT.
What is the valuation status for NSIT stock?
ChartMill assigns a valuation rating of 8 / 10 to INSIGHT ENTERPRISES INC (NSIT). This can be considered as Undervalued.
What is the profitability of NSIT stock?
INSIGHT ENTERPRISES INC (NSIT) has a profitability rating of 7 / 10.
How financially healthy is INSIGHT ENTERPRISES INC?
The financial health rating of INSIGHT ENTERPRISES INC (NSIT) is 4 / 10.