Insight Enterprises (NSIT) AI Stock Analysis

• Market Cap: $3.52B
• Dividend Yield: N/A
• Average Volume (3M): 364.11K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.24
• Revenue Growth: -7.61%
• EPS Growth: -50.01%
• Country: US
• Employees: 14,324
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 2.45
• Shares Outstanding: 31,470,776
• 10 Day Avg. Volume: 450,923
• 30 Day Avg. Volume: 364,114
• PEG Ratio: -2.10
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 8.38
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 14.81
• 1Y Price Target: $147.67
• Price Target Upside: 32.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $134.00 ▲(20.21% Upside)

Insight Enterprises' overall stock score reflects a combination of moderate financial performance, bearish technical indicators, and an overvalued valuation. The earnings call provided some positive highlights, but challenges in revenue and profitability weigh on the score.

Positive Factors

Hardware Revenue Growth

Continued growth in hardware revenue indicates strong demand and market position, supporting long-term revenue stability and expansion.

Commercial Client Growth

Sustained growth in commercial client revenue reflects robust client relationships and effective service offerings, enhancing future revenue prospects.

AI Integration and Recognition

Recognition in AI services positions Insight as a leader in a high-growth sector, potentially driving future innovation and competitive advantage.

Negative Factors

Decline in Net Revenue

A decline in net revenue signals challenges in maintaining sales momentum, which could impact long-term growth and profitability.

Cloud Gross Profit Decline

A decline in cloud gross profit may hinder the company's ability to capitalize on cloud services, a critical growth area in tech.

Challenges in Large Enterprise Client Spending

Hesitancy in large enterprise spending could limit growth opportunities and affect service revenue, impacting long-term business development.

Insight Enterprises Business Overview & Revenue Model

Company Description

Insight Enterprises (NSIT) is a global provider of technology solutions and services, specializing in delivering IT hardware, software, and consulting services to businesses and organizations across various sectors including education, healthcare, and government. The company focuses on helping clients maximize their technology investments through integrated solutions that enhance productivity and operational efficiency. Core offerings include cloud services, data center optimization, and analytics, as well as managed services that support end-to-end IT needs.

How the Company Makes Money

Insight Enterprises generates revenue primarily through the sale of IT products and services, including hardware and software solutions. Key revenue streams include direct sales of IT products, recurring revenue from managed services and cloud solutions, and consulting services aimed at streamlining clients' technology infrastructure. The company also benefits from partnerships with major technology vendors such as Microsoft, Cisco, and Dell, which provide a steady flow of business through reselling and service agreements. Additional factors contributing to its earnings include government contracts and relationships with educational institutions that require robust IT solutions.

Insight Enterprises Financial Statement Overview

Summary

Insight Enterprises presents a mixed financial picture. While the company maintains solid operational cash flow and reasonable leverage, its profitability and revenue growth have shown signs of slowing. This combination suggests moderate financial health with potential areas for improvement, especially in boosting sales and net income margins.

Income Statement

The company's TTM (Trailing-Twelve-Months) gross profit margin is 20.58%, which is reasonable for the industry. However, net profit margin declined to 1.79% from previous annual levels, indicating pressure on profitability. Revenue growth shows a downward trend with TTM revenues lower than the previous year's annual figures, reflecting potential challenges in sales growth. EBIT margin at 3.68% and EBITDA margin at 4.58% indicate stable but unremarkable operational efficiency.

Balance Sheet

The debt-to-equity ratio is 0.96, suggesting moderate use of leverage. Return on equity (ROE) has decreased to 9.32%, indicating a decline in shareholder returns. The equity ratio of 18.39% reflects a stable capital structure but could benefit from higher equity levels to cushion against liabilities.

Cash Flow

Operating cash flow to net income ratio is favorable at 1.61, indicating strong cash generation relative to earnings. However, free cash flow growth is negative, suggesting potential issues in maintaining cash reserves. The free cash flow to net income ratio of 1.34 is healthy, but lower compared to historical performance, indicating possible strain on cash flow due to capital investments or operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36B	8.70B	9.18B	10.43B	9.44B	8.34B
Gross Profit	1.72B	1.77B	1.67B	1.64B	1.45B	1.30B
EBITDA	382.90M	388.58M	481.45M	476.52M	385.85M	351.74M
Net Income	149.67M	249.69M	281.31M	280.61M	219.34M	172.64M
Balance Sheet
Total Assets	8.73B	7.45B	6.29B	5.11B	4.69B	4.31B
Cash, Cash Equivalents and Short-Term Investments	309.13M	259.23M	268.73M	163.64M	103.84M	128.31M
Total Debt	1.55B	1.08B	1.17B	637.90M	361.61M	438.69M
Total Liabilities	7.12B	5.68B	4.55B	3.47B	3.18B	2.97B
Stockholders Equity	1.61B	1.77B	1.74B	1.64B	1.51B	1.34B
Cash Flow
Free Cash Flow	200.76M	586.06M	580.28M	27.17M	111.63M	331.40M
Operating Cash Flow	240.88M	632.85M	619.53M	98.11M	163.71M	355.58M
Investing Cash Flow	-36.21M	-303.28M	-505.20M	-137.84M	-21.07M	9.71M
Financing Cash Flow	-161.53M	-321.27M	-16.71M	114.01M	-161.38M	-361.79M

Insight Enterprises Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSIT, the sentiment is Negative. The current price of 111.47 is below the 20-day moving average (MA) of 118.62, below the 50-day MA of 124.97, and below the 200-day MA of 141.85, indicating a bearish trend. The MACD of -4.34 indicates Positive momentum. The RSI at 30.16 is Neutral, neither overbought nor oversold. The STOCH value of 12.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSIT.

Insight Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	76 Outperform	$13.36B	17.80	9.16%	1.08%	6.95%	19.19%
CNXN	74 Outperform	$1.57B	18.77	9.56%	0.90%	4.94%	-1.79%
SCSC	71 Outperform	$958.76M	14.65	7.89%	―	-6.72%	-1.14%
ARW	69 Neutral	$6.31B	13.75	7.38%	―	-3.95%	-16.72%
AVT	66 Neutral	$4.34B	18.92	4.79%	2.58%	-6.55%	-49.61%
NSIT	61 Neutral	$3.52B	26.60	8.67%	―	-7.61%	-50.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Insight Enterprises Corporate Events

Insight Enterprises Enters Share Repurchase Agreement

On May 26, 2025, Insight Enterprises entered into a Share Repurchase Agreement with ValueAct Capital, purchasing 600,000 shares of its common stock for approximately $76 million. This transaction, part of Insight’s existing $300 million stock repurchase program, aims to optimize the company’s capital structure and enhance shareholder value. The deal also marks a continued partnership with ValueAct, which will now serve as an advisor to Insight during its transformation into a leading AI Solutions Integrator.