Insight Enterprises (NSIT) AI Stock Analysis

• Market Cap: $4.26B
• Dividend Yield: N/A
• Average Volume (3M): 406.53K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.12
• Revenue Growth: -8.73%
• EPS Growth: -35.37%
• Country: US
• Employees: 14,324
• Sector: Technology
• Sector Strength: 68
• Industry: Technology Distributors
• EPS (TTM): 5.00
• Shares Outstanding: 31,928,217
• 10 Day Avg. Volume: 329,110
• 30 Day Avg. Volume: 406,528
• PEG Ratio: 1.32
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $157.67
• Price Target Upside: 18.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Insight Enterprises shows a solid financial base and cash flow generation, but faces challenges with declining revenue and profitability. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call presents a neutral outlook with mixed signals on growth prospects.

Positive Factors

Earnings

The company reported Q4/24 non-GAAP EPS of $2.66, which exceeded the forecast and the FactSet consensus forecast.

Investment Rating

Maintaining an OUTPERFORM investment rating on NSIT shares with a 20% upside to the 12-month price target.

Negative Factors

Product Demand

Reducing 2024 and 2025 non-GAAP EPS forecasts due to a delay in a product demand recovery.

Revenue

The company reported Q3/24 total net revenue of $2.09 billion, which was 11% less than the forecast of $2.35 billion and 2% less than the FactSet consensus forecast of $2.34 billion.

Insight Enterprises Business Overview & Revenue Model

Company Description

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. In addition, the company provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services; and offers Software-as-a-Service subscription products. Further, it designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. Additionally, the company sources, procures, stages, configures, integrates, tests, refurbishes, and redeploys IT products spanning endpoints to infrastructure; and offers software life cycle, and hardware warranty services. It serves construction technology, enterprise business, financial services, health care and life sciences, manufacturing technology, retails and restaurants, service providers, small to medium business, and travel and tourism industries. The company was founded in 1988 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Insight Enterprises generates revenue through a diverse array of services and products that cater to the IT needs of businesses worldwide. The company's primary revenue streams include the sale of software and hardware products, which encompass everything from data center equipment to personal computing devices. Additionally, Insight provides a comprehensive suite of IT services, including consulting, integration, and managed services, which contribute significantly to its earnings. The company also benefits from strategic partnerships with major technology vendors like Microsoft, Cisco, and Dell, which enhance its product offerings and market reach. Insight's ability to provide end-to-end solutions tailored to client needs is a key factor in its financial success.

Insight Enterprises Financial Statement Overview

Summary

Insight Enterprises exhibits stable financial strength with solid cash flow, yet faces challenges in revenue growth and net profit margins. The balance sheet indicates balanced leverage, supporting long-term sustainability.

Income Statement

The TTM (Trailing-Twelve-Months) gross profit margin is 20.55%, which is solid for the industry. However, the net profit margin of 2.26% indicates room for improvement in profitability. Revenue has decreased by 3.17% from the previous year, highlighting a challenge in maintaining growth. The EBIT margin is 3.9%, suggesting moderate operational efficiency.

Balance Sheet

The debt-to-equity ratio is 0.6, indicating a balanced leverage position. Return on equity (ROE) stands at 11.96%, reflecting satisfactory profitability from shareholder investments. The equity ratio is 23.02%, showing a reasonable proportion of equity financing compared to total assets.

Cash Flow

Free cash flow growth rate is negative due to a reduction from the previous year, but the operating cash flow to net income ratio of 2.44 shows strong cash generation relative to profits. The free cash flow to net income ratio of 2.19 underlines robust cash flow compared to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.70B	9.18B	10.43B	9.44B	8.34B
	Gross Profit
1.77B	1.67B	1.64B	1.45B	1.30B
	EBIT
388.58M	419.80M	413.70M	332.06M	271.57M
	EBITDA
388.58M	481.45M	476.52M	385.85M	351.74M
	Net Income Common Stockholders
249.69M	281.31M	280.61M	219.34M	172.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
259.23M	268.73M	163.64M	103.84M	128.31M
	Total Assets
7.45B	6.29B	5.11B	4.69B	4.31B
	Total Debt
1.08B	1.17B	637.90M	361.61M	438.69M
	Net Debt
822.48M	903.64M	474.26M	257.77M	310.37M
	Total Liabilities
5.68B	4.55B	3.47B	3.18B	2.97B
	Stockholders Equity
1.77B	1.74B	1.64B	1.51B	1.34B
Cash Flow		Free Cash Flow
586.06M	580.28M	27.17M	111.63M	331.40M
	Operating Cash Flow
632.85M	619.53M	98.11M	163.71M	355.58M
	Investing Cash Flow
-303.28M	-505.20M	-137.84M	-21.07M	9.71M
	Financing Cash Flow
-321.27M	-16.71M	114.01M	-161.38M	-361.79M

Insight Enterprises Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 133.53 is below the 20-day moving average (MA) of 134.66, below the 50-day MA of 145.93, and below the 200-day MA of 175.90, indicating a bearish trend. The MACD of -3.00 indicates Negative momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, 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
CNXN	73 Outperform	$1.73B	20.72	10.11%	0.66%	-1.70%	4.45%
NSIT	71 Outperform	$4.26B	26.70	11.37%	―	-8.73%	-35.37%
ARW	71 Outperform	$5.97B	15.83	6.68%	―	-15.66%	-54.03%
SCSC	71 Outperform	$809.02M	13.58	6.79%	―	-15.92%	-25.15%
AVT	70 Outperform	$4.30B	14.09	6.42%	2.61%	-10.52%	-42.40%
SNX	65 Neutral	$9.60B	14.30	8.40%	1.47%	4.62%	16.28%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%

Insight Enterprises Corporate Events

Insight Enterprises Announces Board Member Retirement

On March 28, 2025, Alexander Baum announced his retirement from the Board of Directors of Insight Enterprises, effective at the 2025 Annual Meeting. His departure will result in a reduction of the Board size to 10 directors. The company has also entered into a letter agreement with ValueAct Capital Management to continue sharing confidential information for strategic consultations, indicating ongoing collaboration and strategic alignment.