INSIGHT ENTERPRISES INC (NSIT) Stock Fundamental Analysis
USA - NASDAQ:NSIT - US45765U1034 - Common Stock
112.77 USD
+1.01 (+0.9%)
112.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NSIT. NSIT was compared to 124 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 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.
Each year in the past 5 years NSIT has been profitable.
NSIT had a positive operating cash flow in each of the past 5 years.
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 72.58% of its industry peers.
The Return On Invested Capital of NSIT (6.88%) is better than 70.97% of its industry peers.
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
Looking at the Profit Margin, with a value of 1.79%, NSIT is in line with its industry, outperforming 57.26% of the companies in the same industry.
In the last couple of years the Profit Margin of NSIT has grown nicely.
NSIT has a Operating Margin (4.23%) which is comparable to the rest of the industry.
NSIT's Operating Margin has improved in the last couple of years.
NSIT has a Gross Margin of 20.59%. This is in the lower half of the industry: NSIT underperforms 66.13% of its industry peers.
NSIT's Gross Margin has improved in the last couple of years.
| 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
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.
NSIT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NSIT has been reduced compared to a year ago.
2.2 Solvency
NSIT has an Altman-Z score of 1.82. 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 has a Altman-Z score of 1.82. This is in the lower half of the industry: NSIT underperforms 72.58% 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 56.45% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that NSIT is somewhat dependend on debt financing.
The Debt to Equity ratio of NSIT (0.83) is worse than 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.77
WACC8.91%
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.
NSIT has a Current ratio of 1.29. This is amonst the worse of the industry: NSIT underperforms 83.06% of its industry peers.
A Quick Ratio of 1.26 indicates that NSIT should not have too much problems paying its short term obligations.
NSIT's Quick ratio of 1.26 is on the low side compared to the rest of the industry. NSIT is outperformed by 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for NSIT have decreased by -8.06% 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.
The Revenue has decreased by -7.61% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
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
NSIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.20% yearly.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.05, which indicates a correct valuation of NSIT.
96.77% 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 27.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.32, the valuation of NSIT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 95.97% of the companies listed in the same industry.
NSIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 87.10% of the companies listed in the same industry.
89.52% 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 | 17.68 | ||
| EV/EBITDA | 10 |
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)4.64
PEG (5Y)0.93
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 |
112.77
+1.01 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.18%
Inst Owner Change-2.47%
Ins Owners1.07%
Ins Owner Change1.01%
Market Cap3.55B
Analysts76.67
Price Target171.9 (52.43%)
Short Float %5.39%
Short Ratio5.19
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)0%
PT rev (3m)-9.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.42 | ||
| P/FCF | 17.68 | ||
| P/OCF | 14.73 | ||
| P/B | 2.21 | ||
| P/tB | 11.58 | ||
| EV/EBITDA | 10 |
EPS(TTM)9.36
EY8.3%
EPS(NY)10.92
Fwd EY9.69%
FCF(TTM)6.38
FCFY5.66%
OCF(TTM)7.65
OCFY6.79%
SpS265.51
BVpS51.02
TBVpS9.74
PEG (NY)4.64
PEG (5Y)0.93
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 | 1.82 |
F-Score6
WACC8.91%
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%