Insight Enterprises (NasdaqGS:NSIT) - Share price, News & Analysis

Q: What is the Fair Price of NSIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NSIT ($86.27) is trading above our estimate of [[fair value]] ($51.79)

NSIT fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

NSIT Stock Overview

Rewards

Price-To-Earnings ratio (13x) is below the US market (14.7x)

Earnings are forecast to grow 13.35% per year

Earnings have grown 16.4% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Significant insider selling over the past 3 months

Insight Enterprises Competitors

Avnet

NasdaqGS:AVT

US$4.2b

ePlus

NasdaqGS:PLUS

US$1.5b

Arrow Electronics

NYSE:ARW

US$7.3b

PC Connection

NasdaqGS:CNXN

US$1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Insight Enterprises
Historical stock prices
Current Share Price	US$86.27
52 Week High	US$111.02
52 Week Low	US$84.61
Beta	1.65
1 Month Change	-13.03%
3 Month Change	-19.54%
1 Year Change	-13.79%
3 Year Change	48.23%
5 Year Change	115.73%
Change since IPO	4,109.57%

Recent News & Updates

May 31

Is It Time To Consider Buying Insight Enterprises, Inc. (NASDAQ:NSIT)?

Insight Enterprises, Inc. ( NASDAQ:NSIT ), might not be a large cap stock, but it saw significant share price movement...

Shareholder Returns

	NSIT	US Electronic	US Market
7D	-1.8%	4.5%	6.6%
1Y	-13.8%	-19.7%	-18.4%

Return vs Industry: NSIT exceeded the US Electronic industry which returned -19.7% over the past year.

Return vs Market: NSIT exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is NSIT's price volatile compared to industry and market?
NSIT volatility
NSIT Average Weekly Movement	3.7%
Electronic Industry Average Movement	7.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: NSIT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NSIT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	11,624	Joyce Mullen	https://www.insight.com

IInsight Enterprises, Inc., together with its subsidiaries, provides information technology (IT) hardware, software, and services solutions in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. The company’s solution portfolio includes cloud enablement, data and AI, DevOps, digital strategy, intelligent applications and edge, and IoT solutions, as well as transformation services. It also offers cloud and data center transformation; connected workplace; and supply chain optimization solutions.

Insight Enterprises Fundamentals Summary

How do Insight Enterprises's earnings and revenue compare to its market cap?
NSIT fundamental statistics
Market Cap	US$3.03b
Earnings (TTM)	US$232.81m
Revenue (TTM)	US$9.89b

13.0x

P/E Ratio

0.3x

P/S Ratio

Is NSIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSIT income statement (TTM)
Revenue	US$9.89b
Cost of Revenue	US$8.40b
Gross Profit	US$1.49b
Other Expenses	US$1.26b
Earnings	US$232.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.64
Gross Margin	15.11%
Net Profit Margin	2.35%
Debt/Equity Ratio	67.3%

How did NSIT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NSIT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NSIT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NSIT. This is calculated by dividing NSIT's market cap by their current preferred multiple.
What is NSIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.03b

NSIT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	9.7x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does NSIT's PE Ratio compare to its peers?

NSIT PE Ratio vs Peers

The above table shows the PE ratio for NSIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.5x
AVT Avnet	7.9x	0.5%	US$4.2b
PLUS ePlus	14x	1.8%	US$1.5b
ARW Arrow Electronics	5.8x	-11.9%	US$7.3b
CNXN PC Connection	14.3x	6.8%	US$1.2b
NSIT Insight Enterprises	13x	13.3%	US$3.0b

Forward PE

Price-To-Earnings vs Peers: NSIT is expensive based on its Price-To-Earnings Ratio (13x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

How does NSIT's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: NSIT is good value based on its Price-To-Earnings Ratio (13x) compared to the US Electronic industry average (17.6x)

Price to Earnings Ratio vs Fair Ratio

What is NSIT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NSIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13x
Fair PE Ratio	18.5x

Price-To-Earnings vs Fair Ratio: NSIT is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

Share Price vs Fair Value

What is the Fair Price of NSIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NSIT ($86.27) is trading above our estimate of fair value ($51.79)

Significantly Below Fair Value: NSIT is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: NSIT is good value based on its PEG Ratio (1x)

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Future Growth

How is Insight Enterprises forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSIT's forecast earnings growth (13.3% per year) is above the savings rate (1.9%).

Earnings vs Market: NSIT's earnings (13.3% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: NSIT's earnings are forecast to grow, but not significantly.

Revenue vs Market: NSIT's revenue (6.1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: NSIT's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if NSIT's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Insight Enterprises performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NSIT has a high level of non-cash earnings.

Growing Profit Margin: NSIT's current net profit margins (2.4%) are higher than last year (2.2%).

Past Earnings Growth Analysis

Earnings Trend: NSIT's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: NSIT's earnings growth over the past year (28%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: NSIT earnings growth over the past year (28%) underperformed the Electronic industry 33%.

Return on Equity

High ROE: NSIT's Return on Equity (15.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Insight Enterprises's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NSIT's short term assets ($3.8B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: NSIT's short term assets ($3.8B) exceed its long term liabilities ($632.9M).

Debt to Equity History and Analysis

Debt Level: NSIT's net debt to equity ratio (59.9%) is considered high.

Reducing Debt: NSIT's debt to equity ratio has reduced from 74.3% to 67.3% over the past 5 years.

Debt Coverage: NSIT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NSIT's interest payments on its debt are well covered by EBIT (9.1x coverage).

Balance Sheet

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Dividend

What is Insight Enterprises's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NSIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NSIT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NSIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NSIT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NSIT has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure

CEO

Joyce Mullen (58 yo)

0.42

Tenure

US$3,284,446

Compensation

Ms. Joyce A. Mullen has been an Independent Director of The Toro Company since March 19, 2019. She serves as President and Chief Executive Officer at Insight Enterprises, Inc. since January 1, 2022 and als...

CEO Compensation Analysis

Compensation vs Market: Joyce's total compensation ($USD3.28M) is below average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Joyce's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NSIT's management team is considered experienced (4.4 years average tenure).

Board Members

Experienced Board: NSIT's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: NSIT insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31