INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - US45765U1034 - Common Stock
126.46 USD
+0.93 (+0.74%)
126.46 USD
0 (0%)
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 scores excellent on profitability, but 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.
In the past year NSIT had a positive cash flow from operations.
Each year in the past 5 years NSIT has been profitable.
Each year in the past 5 years NSIT had a positive operating cash flow.
1.2 Ratios
NSIT has a Return On Assets (1.71%) which is comparable to the rest of the industry.
The Return On Equity of NSIT (9.32%) is better than 72.80% of its industry peers.
With a decent Return On Invested Capital value of 6.88%, NSIT is doing good in the industry, outperforming 71.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NSIT is above the industry average of 9.48%.
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
With a Profit Margin value of 1.79%, NSIT perfoms like the industry average, outperforming 57.60% 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 (4.23%) is comparable to the rest of the industry.
NSIT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.59%, NSIT is not doing good in the industry: 65.60% of the companies in the same industry are doing better.
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
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.
Compared to 1 year ago, NSIT has an improved debt to assets ratio.
2.2 Solvency
NSIT has an Altman-Z score of 1.86. 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's Altman-Z score of 1.86 is on the low side compared to the rest of the industry. NSIT is outperformed by 69.60% of its industry peers.
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.
With a Debt to FCF ratio value of 6.60, NSIT perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
NSIT has a Debt/Equity ratio of 0.83. This is a neutral value indicating NSIT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, NSIT is doing worse than 84.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.77
WACC8.9%
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.
Looking at the Current ratio, with a value of 1.29, NSIT is doing worse than 82.40% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that NSIT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, NSIT is doing worse than 66.40% of the companies in the same industry.
| 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%.
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.
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
Based on estimates for the next years, NSIT will show a small growth in Earnings Per Share. The EPS will grow by 7.20% on average per year.
Based on estimates for the next years, NSIT will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y2.59%
EPS Next 2Y6.23%
EPS Next 3Y7.2%
EPS Next 5YN/A
Revenue Next Year-2.57%
Revenue Next 2Y1.07%
Revenue Next 3Y2.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.51, NSIT is valued correctly.
Based on the Price/Earnings ratio, NSIT is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
NSIT is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.58 indicates a reasonable valuation of NSIT.
95.20% of the companies in the same industry are more expensive than NSIT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. NSIT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
84.00% of the companies in the same industry are more expensive than NSIT, based on the Enterprise Value to EBITDA ratio.
82.40% of the companies in the same industry are more expensive than NSIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 10.94 |
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)5.21
PEG (5Y)1.04
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 |
126.46
+0.93 (+0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.24%
Inst Owner Change-2.46%
Ins Owners1.05%
Ins Owner Change0.98%
Market Cap3.98B
Analysts76.67
Price Target171.9 (35.93%)
Short Float %5.88%
Short Ratio5.37
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)-9.77%
PT rev (3m)-9.77%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)-3.98%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-2.76%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.58 | ||
| P/S | 0.48 | ||
| P/FCF | 19.82 | ||
| P/OCF | 16.52 | ||
| P/B | 2.48 | ||
| P/tB | 12.98 | ||
| EV/EBITDA | 10.94 |
EPS(TTM)9.36
EY7.4%
EPS(NY)10.92
Fwd EY8.64%
FCF(TTM)6.38
FCFY5.04%
OCF(TTM)7.65
OCFY6.05%
SpS265.51
BVpS51.02
TBVpS9.74
PEG (NY)5.21
PEG (5Y)1.04
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 | 1.86 |
F-Score6
WACC8.9%
ROIC/WACC0.77
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-2.57%
Revenue Next 2Y1.07%
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%