Insight Enterprises (NSIT) AI Stock Analysis

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Insight Enterprises

(NASDAQ:NSIT)

Rating:68Neutral

Price Target:

$148.00

▲( 11.01% Upside)

Insight Enterprises exhibits stable financial health with robust cash flow and satisfactory profitability. However, challenges in revenue growth and net profit margins limit the score. Technical indicators suggest caution with some bearish signals. The stock's valuation appears high, and the recent earnings call was neutral, balancing positive AI and hardware growth with declining revenues.

Positive Factors

Earnings Performance

Insight reported non-GAAP EPS of $2.06, which was 5% higher than the forecast and 2% higher than the FactSet consensus forecast.

Future Growth

An acceleration of revenue/gross profit growth is expected in 2026 as the device cycle broadens beyond the commercial market and transformation initiatives gain traction.

Investment Rating

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

Negative Factors

EPS Forecast

The 2025 non-GAAP EPS forecast has been reduced mostly due to weaker-than-expected product/services demand.

Gross Profit Performance

Insight reported gross profit of $406.5 million, which was 3% less than the forecast and the FactSet consensus forecast.

Revenue Performance

The company reported total net revenue of $2.10 billion, which was 4% less than the forecast and the FactSet consensus forecast.

Insight Enterprises (NSIT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.26B

Dividend YieldN/A

Average Volume (3M)360.04K

Price to Earnings (P/E)26.7

Beta (1Y)1.09

Revenue Growth-8.73%

EPS Growth-35.37%

CountryUS

Employees14,324

SectorTechnology

Sector Strength77

IndustryTechnology Distributors

Share Statistics

EPS (TTM)2.06

Shares Outstanding31,928,217

10 Day Avg. Volume390,585

30 Day Avg. Volume360,040

Financial Highlights & Ratios

PEG Ratio-0.95

Price to Book (P/B)2.68

Price to Sales (P/S)0.00

P/FCF Ratio10.25

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$157.67

Price Target Upside18.26% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Insight Enterprises Business Overview & Revenue Model

Company DescriptionIInsight 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 MoneyInsight Enterprises makes money through a multi-faceted revenue model that includes the sale of IT hardware, software, and services. The key revenue streams for the company are derived from the resale of technology products from major manufacturers, including hardware like computers and networking equipment and software solutions. Additionally, Insight Enterprises generates income from its consulting services, which involve advising clients on digital strategy and IT optimization. The company also invests in managed services and cloud solutions, providing clients with ongoing IT support and infrastructure management. Significant partnerships with technology giants such as Microsoft, Cisco, and Dell further bolster its earnings by expanding its product offerings and enhancing its service capabilities.

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

Positive

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

Positive

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

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
8.43B	8.70B	9.18B	10.43B	9.44B	8.34B
	Gross Profit
1.73B	1.77B	1.67B	1.64B	1.45B	1.30B
	EBIT
328.61M	388.58M	419.80M	413.70M	332.06M	271.57M
	EBITDA
431.14M	388.58M	481.45M	476.52M	385.85M	351.74M
	Net Income Common Stockholders
190.18M	249.69M	281.31M	280.61M	219.34M	172.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
321.85M	259.23M	268.73M	163.64M	103.84M	128.31M
	Total Assets
6.91B	7.45B	6.29B	5.11B	4.69B	4.31B
	Total Debt
961.19M	1.08B	1.17B	637.90M	361.61M	438.69M
	Net Debt
639.34M	822.48M	903.64M	474.26M	257.77M	310.37M
	Total Liabilities
5.32B	5.68B	4.55B	3.47B	3.18B	2.97B
	Stockholders Equity
1.59B	1.77B	1.74B	1.64B	1.51B	1.34B
Cash Flow		Free Cash Flow
416.29M	586.06M	580.28M	27.17M	111.63M	331.40M
	Operating Cash Flow
463.72M	632.85M	619.53M	98.11M	163.71M	355.58M
	Investing Cash Flow
-303.93M	-303.28M	-505.20M	-137.84M	-21.07M	9.71M
	Financing Cash Flow
-211.48M	-321.27M	-16.71M	114.01M	-161.38M	-361.79M

Insight Enterprises Technical Analysis

Technical Analysis Sentiment

Negative

Last Price133.32

Price Trends

50DMA

140.41

Negative

100DMA

151.26

Negative

200DMA

170.44

Negative

Market Momentum

MACD

-1.33

Negative

RSI

43.70

Neutral

STOCH

27.74

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 133.32 is below the 20-day moving average (MA) of 135.56, below the 50-day MA of 140.41, and below the 200-day MA of 170.44, indicating a bearish trend. The MACD of -1.33 indicates Negative momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 27.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSIT.

Insight Enterprises Risk Analysis

Insight Enterprises disclosed 25 risk factors in its most recent earnings report. Insight Enterprises reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Insight Enterprises Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXN	73 Outperform	$1.70B	20.24	10.11%	0.67%	4.21%	6.38%
SNX	72 Outperform	$10.26B	15.28	8.40%	1.37%	4.62%	16.28%
ARW	71 Outperform	$6.18B	16.40	6.68%	―	-11.13%	-43.00%
AVT	70 Outperform	$4.21B	14.07	6.42%	2.60%	-10.52%	-42.40%
NSIT	68 Neutral	$4.26B	26.68	11.37%	―	-8.73%	-35.37%
SCSC	67 Neutral	$908.80M	14.27	7.32%	―	-14.07%	-9.65%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

* Technology Sector Average

Performance Comparison

NSIT

Insight Enterprises

132.08

-76.27

-36.61%

ARW

Arrow Electronics

117.13

-14.39

-10.94%

AVT

Avnet

49.72

-3.86

-7.20%

CNXN

PC Connection

65.68

-2.00

-2.96%

SCSC

ScanSource

39.27

-10.36

-20.87%

SNX

SYNNEX

121.43

-6.97

-5.43%

Insight Enterprises Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: -3.59%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with notable achievements in hardware growth and innovative AI solutions, alongside strong partner recognition. However, these were balanced by significant declines in net revenue and gross profit, challenges in services revenue, and a decrease in cloud gross profit. The sentiment is neutral as highlights and lowlights are balanced.

Q1-2025 Updates

Positive Updates

Hardware Revenue Growth

Hardware revenue increased 1%, marking the first time in 10 quarters that there was a growth in this segment.

SaaS and Infrastructure as a Service Growth

SaaS and Infrastructure as a Service gross profit grew by 17%, excluding partner program changes.

Strong Partner Recognition

Insight was recognized as Google Partner of the Year for Google Workspace, Intel U.S. Data Center Partner of the Year, and ESET Canada Enterprise Partner of the Year.

Innovative AI Implementations

Implemented AI solutions for clients like the Sherlock Company and Boyne Resorts, leading to increased efficiency and enhanced customer experiences.

Cash Flow from Operations

Generated $78 million of cash flow from operations in Q1, with expectations to generate $300 million to $400 million for the year.

Negative Updates

Net Revenue Decline

Net revenue decreased by 12% due to a 13% decline in product revenue, primarily from on-prem software.

Gross Profit Decline

Gross profit decreased by 8% due to partner program changes and a decline in on-prem software and agent services.

Challenges in Services Revenue

Insight Core services revenue was down 2% and below expectations due to large enterprise clients delaying service projects.

Cloud Gross Profit Decline

Cloud gross profit decreased by 3% due to a decline in legacy Microsoft Enterprise agreements and a pivot to mid-market space.

Adjusted EBITDA and Earnings Decline

Adjusted EBITDA decreased by 16% and adjusted diluted earnings per share were down 13%.

Company Guidance

In the recent call, Insight Enterprises provided guidance for 2025, maintaining a cautiously optimistic outlook despite macroeconomic uncertainties, including tariffs and potential supply chain disruptions. The company anticipates that growth and profitability will be more heavily weighted towards the second half of the year. Key metrics include a projected gross profit growth in the low-single-digits, with an expected gross margin of approximately 20%. Adjusted diluted earnings per share are forecasted between $9.70 and $10.10. Insight plans to manage interest expenses between $70 million to $75 million, and maintain an effective tax rate of 25% to 26% for the full year. Capital expenditures are expected to range from $35 million to $40 million, while the average share count is projected to be 32.9 million shares. Insight also highlighted strong performance in hardware and AI-related services, while navigating partner program changes and focusing on strategic investments in cloud, data, AI, and cybersecurity to drive long-term growth.

Insight Enterprises Corporate Events

Shareholder Meetings

Insight Enterprises Holds Annual Stockholders Meeting

Neutral

May 15, 2025

On May 13, 2025, Insight Enterprises held its Annual Meeting of Stockholders, where ten directors were elected to serve until the 2026 meeting. The stockholders also approved executive officer compensation and ratified KPMG LLP as the independent public accounting firm for 2025, indicating continued confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (NSIT) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Insight Enterprises stock, see the NSIT Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy

Insight Enterprises Announces Board Member Retirement

Neutral

Apr 3, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.