INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
NASDAQ:NSIT - Nasdaq - US45765U1034 - Common Stock - Currency: USD
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. While NSIT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NSIT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NSIT had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.40%, NSIT is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
With an excellent Return On Equity value of 11.95%, NSIT belongs to the best 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 77.60% 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 9.35%.
| 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
NSIT's Profit Margin of 2.26% is fine compared to the rest of the industry. NSIT outperforms 62.40% of its industry peers.
In the last couple of years the Profit Margin of NSIT has grown nicely.
Looking at the Operating Margin, with a value of 4.59%, NSIT is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
In the last couple of years the Operating Margin of NSIT has grown nicely.
Looking at the Gross Margin, with a value of 20.55%, NSIT is doing worse than 62.40% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NSIT is 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 2.05. 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.
With a Altman-Z score value of 2.05, NSIT is not doing good in the industry: 69.60% of the companies in the same industry are doing better.
The Debt to FCF ratio of NSIT is 2.31, which is a good value as it means it would take NSIT, 2.31 years of fcf income to pay off all of its debts.
NSIT has a better Debt to FCF ratio (2.31) than 75.20% of its industry peers.
NSIT has a Debt/Equity ratio of 0.60. This is a neutral value indicating NSIT is somewhat dependend on debt financing.
The Debt to Equity ratio of NSIT (0.60) is worse than 79.20% of its industry peers.
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 | 2.05 |
ROIC/WACC1.01
WACC8.08%
2.3 Liquidity
NSIT has a Current Ratio of 1.23. This is a normal value and indicates that NSIT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NSIT (1.23) is worse than 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.
With a Quick ratio value of 1.19, NSIT is not doing good in the industry: 72.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for NSIT have decreased by -8.85% in the last year.
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.
NSIT shows a decrease in Revenue. In the last year, the revenue decreased by -8.73%.
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
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
Based on estimates for the next years, NSIT will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y3.63%
EPS Next 2Y5.92%
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
Based on the Price/Earnings ratio of 13.99, the valuation of NSIT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 89.60% of the companies listed in the same industry.
NSIT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.07 indicates a correct valuation of NSIT.
88.80% 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 22.13. NSIT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NSIT is valued cheaper than 84.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 91.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 10.08 |
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)3.85
PEG (5Y)1.08
EPS Next 2Y5.92%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
No dividends for NSIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
131.05
-3.17 (-2.36%)
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-0.91%
Ins Owners1.05%
Ins Owner Change7.49%
Market Cap4.18B
Analysts76.67
Price Target190.51 (45.37%)
Short Float %4.98%
Short Ratio4.04
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)-10.49%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.07 | ||
| P/S | 0.5 | ||
| P/FCF | 10.05 | ||
| P/OCF | 9.02 | ||
| P/B | 2.63 | ||
| P/tB | 14.68 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)9.37
EY7.15%
EPS(NY)10.86
Fwd EY8.29%
FCF(TTM)13.04
FCFY9.95%
OCF(TTM)14.52
OCFY11.08%
SpS263.88
BVpS49.83
TBVpS8.92
PEG (NY)3.85
PEG (5Y)1.08
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 | 2.05 |
F-Score5
WACC8.08%
ROIC/WACC1.01
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 Y3.63%
EPS Next 2Y5.92%
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%