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 125 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.
Each year in the past 5 years NSIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NSIT (2.40%) is better than 61.60% of its industry peers.
Looking at the Return On Equity, with a value of 11.95%, NSIT belongs to the top of the industry, outperforming 82.40% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.17%, NSIT is doing good in the industry, outperforming 78.40% of the companies in the same industry.
NSIT had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 9.16%.
| 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
Looking at the Profit Margin, with a value of 2.26%, NSIT is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
NSIT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.59%, NSIT is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
In the last couple of years the Operating Margin of NSIT has grown nicely.
NSIT's Gross Margin of 20.55% is on the low side compared to the rest of the industry. NSIT is outperformed by 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NSIT is still creating some value.
Compared to 1 year ago, NSIT has less shares outstanding
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
An Altman-Z score of 2.07 indicates that NSIT is not a great score, but indicates only limited risk for bankruptcy at the moment.
NSIT has a worse Altman-Z score (2.07) than 70.40% of its industry peers.
NSIT has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as NSIT would need 2.31 years to pay back of 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 75.20% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that NSIT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, NSIT is doing worse than 79.20% of the companies in the same industry.
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/WACC0.89
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.23 indicates that NSIT should not have too much problems paying its short term obligations.
NSIT has a Current ratio of 1.23. This is amonst the worse of the industry: NSIT underperforms 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 has a worse Quick ratio (1.19) than 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
NSIT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.85%.
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 -8.73% in the last year.
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
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.
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
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
The Price/Earnings ratio is 14.96, which indicates a correct valuation of NSIT.
NSIT's Price/Earnings ratio is rather cheap when compared to the industry. NSIT is cheaper than 88.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NSIT to the average of the S&P500 Index (27.54), we can say NSIT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.85, the valuation of NSIT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 91.20% of the companies listed in the same industry.
NSIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
85.60% 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 cheaply inside the industry as 90.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NSIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.27
PEG (5Y)1.15
EPS Next 2Y6.16%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
No dividends for NSIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NSIT (7/21/2025, 11:54:15 AM)
140.22
+0.83 (+0.6%)
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-0.54%
Ins Owners1.05%
Ins Owner Change7.69%
Market Cap4.48B
Analysts76.67
Price Target190.51 (35.87%)
Short Float %5.61%
Short Ratio5.58
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)-1.01%
EPS NQ rev (3m)-1.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.85 | ||
| P/S | 0.53 | ||
| P/FCF | 10.76 | ||
| P/OCF | 9.66 | ||
| P/B | 2.81 | ||
| P/tB | 15.71 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)9.37
EY6.68%
EPS(NY)10.91
Fwd EY7.78%
FCF(TTM)13.04
FCFY9.3%
OCF(TTM)14.52
OCFY10.36%
SpS263.88
BVpS49.83
TBVpS8.92
PEG (NY)4.27
PEG (5Y)1.15
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
WACC9.15%
ROIC/WACC0.89
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%