INSIGHT ENTERPRISES INC (NSIT)
US45765U1034 - Common Stock
We assign a fundamental rating of 5 out of 10 to NSIT. NSIT was compared to 127 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NSIT had positive earnings in the past year.
In the past year NSIT had a positive cash flow from operations.
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
NSIT's Return On Assets of 4.47% is fine compared to the rest of the industry. NSIT outperforms 67.20% of its industry peers.
Looking at the Return On Equity, with a value of 16.21%, NSIT belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
NSIT has a Return On Invested Capital of 11.11%. This is amongst the best in the industry. NSIT outperforms 81.60% of its industry peers.
NSIT had an Average Return On Invested Capital over the past 3 years of 12.13%. This is above the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 16.21% | ||
| ROIC | 11.11% |
ROA(3y)4.88%
ROA(5y)4.49%
ROE(3y)15.96%
ROE(5y)14.89%
ROIC(3y)12.13%
ROIC(5y)11.02%
1.3 Margins
NSIT has a Profit Margin of 3.07%. This is in the better half of the industry: NSIT outperforms 60.80% of its industry peers.
In the last couple of years the Profit Margin of NSIT has grown nicely.
The Operating Margin of NSIT (4.72%) is better than 62.40% of its industry peers.
In the last couple of years the Operating Margin of NSIT has grown nicely.
Looking at the Gross Margin, with a value of 18.20%, NSIT is doing worse than 69.60% of the companies in the same industry.
NSIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 3.07% | ||
| GM | 18.2% |
OM growth 3Y11.13%
OM growth 5Y7.12%
PM growth 3Y13.91%
PM growth 5Y5.77%
GM growth 3Y5.29%
GM growth 5Y5.32%
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.
NSIT has less shares outstanding than it did 5 years ago.
NSIT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.05 indicates that NSIT is not in any danger for bankruptcy at the moment.
NSIT has a Altman-Z score (3.05) which is comparable to the rest of the industry.
The Debt to FCF ratio of NSIT is 1.62, which is an excellent value as it means it would take NSIT, only 1.62 years of fcf income to pay off all of its debts.
NSIT has a better Debt to FCF ratio (1.62) than 72.80% of its industry peers.
NSIT has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, NSIT is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
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 | 0.34 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.26
WACC8.83%
2.3 Liquidity
NSIT has a Current Ratio of 1.28. 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 1.28, NSIT is doing worse than 83.20% of the companies in the same industry.
NSIT has a Quick 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.
With a Quick ratio value of 1.23, NSIT is not doing good in the industry: 71.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.37% over the past year.
Measured over the past years, NSIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.97% on average per year.
Looking at the last year, NSIT shows a very negative growth in Revenue. The Revenue has decreased by -12.04% in the last year.
The Revenue has been growing slightly by 5.32% on average over the past years.
EPS 1Y (TTM)6.37%
EPS 3Y16.11%
EPS 5Y15.97%
EPS growth Q2Q17.79%
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y3.23%
Revenue growth 5Y5.32%
Revenue growth Q2Q-10.65%
3.2 Future
Based on estimates for the next years, NSIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
The Revenue is expected to grow by 6.51% on average over the next years.
EPS Next Y11.73%
EPS Next 2Y13.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.77%
Revenue Next 2Y6.51%
Revenue Next 3YN/A
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.67, NSIT is valued on the expensive side.
NSIT's Price/Earnings ratio is a bit cheaper when compared to the industry. NSIT is cheaper than 68.80% of the companies in the same industry.
NSIT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 18.50 indicates a rather expensive valuation of NSIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSIT indicates a somewhat cheap valuation: NSIT is cheaper than 68.00% of the companies listed in the same industry.
NSIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 18.5 |
4.2 Price Multiples
64.80% of the companies in the same industry are more expensive than NSIT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
NSIT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NSIT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NSIT's earnings are expected to grow with 13.53% in the coming years.
PEG (NY)1.76
PEG (5Y)1.29
EPS Next 2Y13.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NSIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INSIGHT ENTERPRISES INC
NASDAQ:NSIT (5/8/2024, 7:09:17 PM)
After market: 200.34 0 (0%)200.34
+0.21 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 18.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.76
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 16.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.72% | ||
| PM (TTM) | 3.07% | ||
| GM | 18.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.37%
EPS 3Y16.11%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y3.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y