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Ingram Micro Holding Corporation (INGM)
NYSE:INGM
US Market

Ingram Micro Holding Corporation (INGM) AI Stock Analysis

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Ingram Micro Holding Corporation

(NYSE:INGM)

Rating:73Outperform
Price Target:
$21.50
▼(-1.56%Downside)
Ingram Micro's overall stock score reflects strong financial health with solid revenue growth and strategic investments in technology driving optimism. Challenges like low net profit margins and macroeconomic uncertainties are offset by positive earnings call insights and reasonable valuation metrics.
Positive Factors
Dividend and Debt Management
Ingram Micro raised the dividend to $0.076 and repaid an incremental $125 million in debt.
Earnings Performance
Ingram Micro reported strong F1Q25 earnings results, beating Street revenue and EPS estimates.
Operational Efficiencies
Xvantage brings significant operating efficiencies, eliminating tedious tasks and resulting in over $200 million in operating expense savings.
Negative Factors
Analyst Recommendation
The analyst's recommendation for the stock has been downgraded from 'Overweight' to 'Equal-weight'.
Ownership Structure
Ingram Micro's approximately 90% private equity ownership remains an overhang, limiting the potential for its stock's multiple expansion.
Stock Valuation
The price-to-earnings overhang is expected to continue limiting the company's potential for multiple expansion.

Ingram Micro Holding Corporation (INGM) vs. SPDR S&P 500 ETF (SPY)

Ingram Micro Holding Corporation Business Overview & Revenue Model

Company DescriptionIngram Micro Holding Corporation (INGM) operates as a global leader in technology and supply chain services. The company provides a comprehensive range of IT solutions and services to businesses of all sizes, including IT distribution, logistics services, and cloud solutions. Ingram Micro serves a diverse clientele that spans various sectors such as technology, retail, and finance, offering products ranging from hardware and software to advanced digital solutions.
How the Company Makes MoneyIngram Micro makes money primarily through its IT distribution and supply chain services. The company acts as an intermediary between technology manufacturers and resellers, purchasing products in bulk from manufacturers and selling them to businesses and retailers. This distribution model allows Ingram Micro to benefit from economies of scale. Additionally, the company generates revenue from value-added services, including logistics and warehousing, cloud services, and IT support. Ingram Micro's strategic partnerships with leading technology companies enhance its product offerings and market reach, further contributing to its revenue streams.

Ingram Micro Holding Corporation Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 11.37%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a positive outlook with strong revenue growth and successful implementation of cloud and AI platforms. However, challenges such as gross margin pressure, tariff uncertainties, and competitive pressures in certain markets were also acknowledged.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenue of $12.3 billion was up 11% year over year on an FX neutral basis, and 4% above the high end of the guidance provided on the Q4 call.
Successful Cloud and AI Platform Implementation
Invested over $600 million in the cloud, which is the foundation of the xVantage digital platform, implemented in 20 of the 57 countries. The platform has enabled more than triple the self-service orders versus the prior year.
Recognition for Innovative Technology
Ingram Micro received three IF design awards 2025 in the user experience category for mobile, email to order, and insights and recommendation solutions within xVantage.
Regional Sales Performance
North America net sales were $4.43 billion, up 10.4% year over year on an FX neutral basis. Asia Pacific had the strongest growth with net sales of $3.62 billion, up 20.1% year over year.
Improved Productivity and Efficiency
In the U.S., where xVantage is most mature, there were meaningful gains in both revenue generation and cost leverage, both of which were up double-digit per head.
Negative Updates
Gross Margin Pressure
Overall gross margins were down 62 basis points versus the prior year due to a mix of factors, including a higher concentration of sales in lower-margin regions.
Tariff and Macro Uncertainties
The tariff environment presents uncertainties, with potential impacts on demand and pricing. Modeling the impact is challenging, and the macro environment remains volatile.
Latin America Sales Decline
Latin America net sales were down 8.5% in US dollars, and down only 0.3% in constant currency, reflecting a more neutral performance in client and endpoint solutions.
India Market Competitiveness
The market in India remains highly competitive, impacting margins and requiring strategic adjustments in go-to-market strategies.
Company Guidance
During the Q1 2025 earnings call, Ingram Micro reported a notable performance with net revenue reaching $12.3 billion, reflecting an 11% year-over-year increase on an FX neutral basis and exceeding the high end of their previous guidance by 4%. Gross profit was $829 million, which was over 2% above the midpoint of their guidance, and non-GAAP EPS stood at $0.61, aligning with the high end of expectations. The company experienced significant sales growth in North America and Asia Pacific, both achieving double-digit increases, while EMEA grew by 3% and Latin America's performance was flat. Ingram Micro attributed its top-line growth to robust demand in client and endpoint solutions, along with solid advancements in their cloud and advanced solutions sectors. Despite challenges in the macroeconomic and trade environment, Ingram Micro remains optimistic, underpinned by their four decades of experience and strategic investments, including $600 million in their xVantage digital platform, currently operational in 20 of the 57 countries. The xVantage platform, powered by advanced AI and machine learning models, enhanced customer engagement and contributed significantly to revenue, as evidenced by increased self-service orders and reactivation of dormant customers, showcasing the platform's potential to transform Ingram Micro into a platform company with improved operational efficiencies and customer experiences. Looking ahead, the company projects Q2 net sales between $11.77 billion and $12.17 billion, gross profit in the range of $800 million to $850 million, and non-GAAP EPS of $0.53 to $0.63, reflecting ongoing strategic growth and operational leverage amidst economic uncertainties.

Ingram Micro Holding Corporation Financial Statement Overview

Summary
Ingram Micro Holding Corporation maintains a stable financial position with a moderate net profit margin of 0.57% and a low debt-to-equity ratio of 0.24. Revenue growth is consistent, and there is a significant improvement in free cash flow. However, low profitability margins and the need for better cash conversion efficiency are areas for improvement.
Income Statement
75
Positive
Ingram Micro Holding Corporation shows a stable financial performance with a moderate gross profit margin of 7.02% and a net profit margin of 0.57% for the TTM. The company experienced a slight revenue growth of 1.95% from the previous year. EBIT and EBITDA margins are 1.72% and 2.29% respectively, indicating operational efficiency. However, the net profit margin is relatively low, suggesting room for improvement in cost management or pricing strategy.
Balance Sheet
70
Positive
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.24, indicating low leverage compared to equity. The return on equity (ROE) is 7.23%, which suggests moderate profitability in relation to shareholders' equity. The equity ratio is 20.73%, showing a reasonable proportion of equity financing. The balance sheet suggests a sound financial structure but highlights potential risks associated with relatively low equity levels.
Cash Flow
60
Neutral
Cash flow analysis reveals a 55.56% growth in free cash flow, indicating improved cash generation. The operating cash flow to net income ratio is 0.84, suggesting the company is converting a significant portion of its income into cash. However, the free cash flow to net income ratio of 1.06 is slightly above 1, indicating reliance on cash reserves or financing for capital expenditure. The overall cash flow position is positive, with some areas for improvement in cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2019
Income Statement
Total Revenue48.92B47.98B48.04B50.82B54.46B47.20B
Gross Profit3.43B3.44B3.55B3.69B4.11B3.35B
EBITDA1.12B1.10B1.19B3.43B1.15B892.50M
Net Income279.48M264.22M352.71M2.39B366.11M503.62M
Balance Sheet
Total Assets18.63B18.78B18.42B19.09B19.80B15.47B
Cash, Cash Equivalents and Short-Term Investments881.64M918.40M948.49M1.32B1.23B671.82M
Total Debt929.98M3.82B4.40B4.79B5.16B1.48B
Total Liabilities14.77B15.05B14.91B16.03B17.10B10.80B
Stockholders Equity3.86B3.73B3.51B3.06B2.69B4.67B
Cash Flow
Free Cash Flow297.23M191.14M-142.71M-496.89M-1.29B392.89M
Operating Cash Flow233.66M333.84M58.82M-361.11M-1.16B561.67M
Investing Cash Flow139.72M105.54M-17.71M3.03B-111.88M-173.40M
Financing Cash Flow-298.04M-391.30M-477.94M-2.47B1.58B-252.43M

Ingram Micro Holding Corporation Risk Analysis

Ingram Micro Holding Corporation disclosed 53 risk factors in its most recent earnings report. Ingram Micro Holding Corporation 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

Ingram Micro Holding Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WNWNS
76
Outperform
$3.03B16.8321.21%-0.64%30.96%
74
Outperform
$5.56B16.6021.63%1.25%3.39%-16.78%
73
Outperform
$3.65B15.695.59%2.33%11.31%-16.02%
73
Outperform
$5.13B18.357.61%1.39%2.31%-18.77%
DXDXC
70
Outperform
$2.96B7.7112.88%-5.82%469.88%
57
Neutral
$1.15B27.35-27.06%10.34%10.83%-5.57%
KDKD
52
Neutral
$10.05B41.9222.47%-8.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INGM
Ingram Micro Holding Corporation
21.84
-2.22
-9.23%
SAIC
Science Applications
118.58
5.51
4.87%
WNS
WNS
65.38
11.46
21.25%
DXC
DXC Technology
16.24
-2.51
-13.39%
CNXC
Concentrix
57.16
-7.24
-11.24%
KD
Kyndryl Holdings Incorporation
43.41
17.41
66.96%

Ingram Micro Holding Corporation Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Ingram Micro Reduces Loan Interest Rate by 50 Bps
Positive
Jun 20, 2025

On June 17, 2025, Ingram Micro Inc., a subsidiary of Ingram Micro Holding Corporation, amended its Term Loan Credit Agreement to reduce the interest rate by 50 basis points. This amendment, involving JPMorgan Chase Bank as the administrative agent, allows the borrower to choose between an adjusted Term SOFR plus an applicable margin of 225 bps or the base rate plus an applicable margin of 125 bps, potentially improving the company’s financial flexibility.

The most recent analyst rating on (INGM) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Ingram Micro Holding Corporation stock, see the INGM Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Ingram Micro’s Virtual Annual Stockholders’ Meeting Results
Neutral
Jun 9, 2025

On June 4, 2025, Ingram Micro Holding Corporation conducted its annual stockholders’ meeting virtually, where four key proposals were voted upon. The stockholders elected four directors to serve until 2028, approved the executive compensation on an advisory basis, decided on an annual frequency for future advisory votes on executive compensation, and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2025.

The most recent analyst rating on (INGM) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Ingram Micro Holding Corporation stock, see the INGM Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Ingram Micro Announces Dividend Increase and Strong Q1 Results
Positive
May 8, 2025

On May 8, 2025, Ingram Micro announced a cash dividend increase and reported strong fiscal first-quarter results, with net sales of $12.3 billion, an 8.3% increase over the previous year. Despite a decrease in gross margin due to a shift in sales mix, the company achieved a net income of $69.2 million and a non-GAAP net income of $144.2 million. The company repaid $125 million of term loans and used $200.4 million in operations. Ingram Micro’s strategic investments in innovation and automation are expected to drive future growth, with a focus on leveraging its Xvantage platform to enhance partner capabilities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 24, 2025