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. NSIT scores excellent on profitability, but 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.
Each year in the past 5 years NSIT has been profitable.
In the past 5 years NSIT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.35%, NSIT is in the better half of the industry, outperforming 66.40% of the companies in the same industry.
NSIT's Return On Equity of 14.10% is amongst the best of the industry. NSIT outperforms 83.20% of its industry peers.
NSIT has a better Return On Invested Capital (9.50%) than 81.60% of its industry peers.
NSIT had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 14.1% | ||
| ROIC | 9.5% |
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
The Profit Margin of NSIT (2.87%) is better than 63.20% 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 4.86%, NSIT is in the better half of the industry, outperforming 65.60% 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 20.30%, NSIT is doing worse than 64.00% 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 | 4.86% | ||
| PM (TTM) | 2.87% | ||
| GM | 20.3% |
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.
NSIT has less shares outstanding than it did 1 year ago.
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
NSIT has an Altman-Z score of 2.21. 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.
Looking at the Altman-Z score, with a value of 2.21, NSIT is doing worse than 63.20% of the companies in the same industry.
NSIT has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
NSIT has a Debt to FCF ratio of 1.47. This is in the better half of the industry: NSIT outperforms 80.00% of its industry peers.
NSIT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
NSIT's Debt to Equity ratio of 0.30 is on the low side compared to the rest of the industry. NSIT is outperformed by 60.80% of its industry peers.
Even though the debt/equity ratio score it not favorable for NSIT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.06
WACC8.93%
2.3 Liquidity
NSIT has a Current Ratio of 1.18. 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 1.18. This is amonst the worse of the industry: NSIT underperforms 87.20% of its industry peers.
NSIT has a Quick Ratio of 1.15. 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 Quick ratio, with a value of 1.15, NSIT is doing worse than 70.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
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 -5.17%.
NSIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)-8.85%
EPS 3Y10.83%
EPS 5Y12.97%
EPS Q2Q%-13.08%
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y-2.66%
Revenue growth 5Y2.39%
Sales Q2Q%-11.6%
3.2 Future
NSIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.78% yearly.
The Revenue is expected to grow by 4.03% on average over the next years.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.23, the valuation of NSIT can be described as correct.
87.20% of the companies in the same industry are more expensive than NSIT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.91. NSIT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.28, which indicates a correct valuation of NSIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSIT indicates a rather cheap valuation: NSIT is cheaper than 86.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, NSIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NSIT is valued cheaply inside the industry as 86.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NSIT is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 9.33 |
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)3.92
PEG (5Y)1.1
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 |
133.32
-0.12 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.5%
Inst Owner Change-0.92%
Ins Owners0.98%
Ins Owner Change6.79%
Market Cap4.25B
Analysts76.67
Price Target190.51 (42.9%)
Short Float %5.48%
Short Ratio4.15
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)-2.99%
Min EPS beat(2)-9.25%
Max EPS beat(2)3.28%
EPS beat(4)2
Avg EPS beat(4)1.96%
Min EPS beat(4)-14.42%
Max EPS beat(4)28.23%
EPS beat(8)2
Avg EPS beat(8)-1.03%
EPS beat(12)6
Avg EPS beat(12)4.61%
EPS beat(16)9
Avg EPS beat(16)3.42%
Revenue beat(2)0
Avg Revenue beat(2)-7.9%
Min Revenue beat(2)-12.42%
Max Revenue beat(2)-3.37%
Revenue beat(4)1
Avg Revenue beat(4)-7.09%
Min Revenue beat(4)-14.08%
Max Revenue beat(4)1.51%
Revenue beat(8)1
Avg Revenue beat(8)-7.54%
Revenue beat(12)3
Avg Revenue beat(12)-4.62%
Revenue beat(16)5
Avg Revenue beat(16)-2.67%
PT rev (1m)-8.57%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.49 | ||
| P/FCF | 7.26 | ||
| P/OCF | 6.72 | ||
| P/B | 2.4 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)9.37
EY7.03%
EPS(NY)10.86
Fwd EY8.15%
FCF(TTM)18.37
FCFY13.78%
OCF(TTM)19.83
OCFY14.88%
SpS272.7
BVpS55.49
TBVpS14.12
PEG (NY)3.92
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 14.1% | ||
| ROCE | 12.71% | ||
| ROIC | 9.5% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 18.09% | ||
| OM | 4.86% | ||
| PM (TTM) | 2.87% | ||
| GM | 20.3% | ||
| FCFM | 6.74% |
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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 47.67% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 12 | ||
| Cash Conversion | 121.47% | ||
| Profit Quality | 234.72% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.21 |
F-Score6
WACC8.93%
ROIC/WACC1.06
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)-5.17%
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-2.42%
EBIT growth 3Y8.62%
EBIT growth 5Y10.39%
EBIT Next Year13.41%
EBIT Next 3Y9.55%
EBIT Next 5YN/A
FCF growth 1Y1%
FCF growth 3Y73.82%
FCF growth 5Y58.38%
OCF growth 1Y2.15%
OCF growth 3Y56.95%
OCF growth 5Y37.68%