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Ingram Micro Holding Corporation (INGM)
NYSE:INGM
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Ingram Micro Holding Corporation
(NYSE:INGM)
Rating:70Outperform
Price Target:
$21.00
▲(4.74%Upside)
Positive Factors
Client Growth
Management remains encouraged by the number of dormant clients coming back to Ingram, who are on average leveraging Xvantage at much higher volumes than beforehand.
Operational Efficiency
Xvantage brings significant operating efficiencies, and has enabled the company to eliminate tedious tasks like order status calls, resulting in over $200 million in operating expense savings over the last nine quarters.
Negative Factors
Gross Margins
Refresh strength and higher mix of low margin enterprise sales led to softer-than-expected gross margins in the first quarter.
Market Conditions
INGM guided a weaker F2Q outlook on tariffs and macro environment.
Ingram Micro Holding Corporation (INGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.71B
Dividend YieldN/A
Average Volume (3M)318.24K
Price to Earnings (P/E)16.8
Beta (1Y)1.19
Revenue Growth2.31%
EPS Growth-18.77%
CountryUS
Employees23,500
SectorTechnology
Sector Strength83
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.61
Shares Outstanding234,837,000
10 Day Avg. Volume233,388
30 Day Avg. Volume318,239
Financial Highlights & Ratios
PEG Ratio3.03
Price to Book (P/B)1.16
Price to Sales (P/S)0.00
P/FCF Ratio15.84
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit1.39
Enterprise Value/Ebitda1.06
Forecast
1Y Price Target
$23.57Price Target Upside17.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Ingram Micro Holding Corporation Business Overview & Revenue Model
Company DescriptionIngram Micro Holding Corporation, through its subsidiaries, engages in the provision of technology services and solutions to vendor, reseller, and retailer partners in North America, Europe, the Middle East, Africa, the Asia-Pacific, Latin America, and internationally. The company provides Ingram Micro Cloud Marketplace service portfolio that consists of third-party cloud-based services or subscription offerings through its Ingram Micro Xvantage platform, as well as offers training, ITAD, reverse logistics, repair and other related solutions, and financial solutions. It also provides client and endpoint solutions, including desktop personal computers, notebooks, tablets, printers, application software, peripherals, accessories, and Ingram Micro branded solutions, as well as components comprising hard drives, motherboards, video cards, etc. for corporate and individual end users. In addition, the company offers enterprise grade hardware and software products, such as servers, storage, networking, infrastructure hardware and software, and hybrid and software-defined solutions, as well as cybersecurity, power and cooling, and virtualization solutions; and DC/POS, physical security, audio visual and digital signage, UCC and telephony, smart office/home automation, and artificial intelligence products. Further, it provides third-party cloud-based services and subscriptions, including business applications, security, communications and collaboration, cloud enablement solutions, and infrastructure-as-a-service solutions; and operates CloudBlue digital commerce platform that offers multi-channel and multi-tier catalog management, subscription management, billing, and orchestration solutions through a SaaS model. The company was founded in 1979 and is headquartered in Irvine, California.
How the Company Makes MoneyIngram Micro generates revenue primarily through the distribution of technology products and services. The company acts as an intermediary between technology manufacturers and resellers, purchasing products in bulk and selling them to a network of resellers, retailers, and other businesses. Key revenue streams include the sale of IT hardware, software, and cloud solutions. Ingram Micro also provides value-added services such as logistics, supply chain management, and cloud platform services, which contribute to its earnings. Strategic partnerships with leading technology vendors and a robust network of channel partners play a significant role in enhancing the company's revenue potential.
Ingram Micro Holding Corporation Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 2.24%|
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 displays stable gross margins but struggles with declining revenue and net profitability. The high debt-to-equity ratio on the balance sheet signals financial leverage risks. Cash flow improvements are evident, yet free cash flow inconsistency affects financial flexibility. A focus on revenue growth and consistent profitability is necessary for better financial health.Income Statement
The company shows a mixed performance in recent years. Gross profit margins have remained stable, suggesting efficient cost management. However, net profit margins have decreased significantly, indicating challenges in converting revenue into profit. Revenue has been declining, which is a concern for growth. While EBIT and EBITDA margins are reasonable, they are not showing strong upward trends.68
Positive
Balance Sheet
The balance sheet indicates a relatively high debt-to-equity ratio, which poses potential risks regarding financial leverage. The return on equity has been inconsistent, reflecting variable profitability. The equity ratio indicates that a significant portion of assets is financed by liabilities, which could affect financial stability.55
Neutral
Cash Flow
Cash flow from operations has improved recently, but free cash flow has been inconsistent. The company has managed to improve its operating cash flow to net income ratio, indicating better cash generation from operations. However, free cash flow growth remains a concern, impacting long-term financial flexibility.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 48.92B | 47.98B | 48.04B | 50.82B | 54.46B | 47.20B | Gross Profit |
| 3.43B | 3.44B | 3.55B | 3.69B | 4.11B | 3.35B | EBIT |
| 842.28M | 817.92M | 944.35M | 3.25B | 788.95M | 697.77M | EBITDA |
| 1.06B | 1.10B | 1.19B | 3.43B | 1.15B | 892.50M | Net Income Common Stockholders |
| 279.48M | 264.22M | 352.71M | 2.39B | 366.11M | 503.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 671.82M | 918.40M | 948.49M | 1.32B | 1.23B | 671.82M | Total Assets |
| 15.47B | 18.78B | 18.42B | 19.09B | 19.80B | 15.47B | Total Debt |
| 1.48B | 3.82B | 4.40B | 4.79B | 5.16B | 1.48B | Net Debt |
| 808.40M | 2.90B | 3.45B | 3.47B | 3.93B | 808.40M | Total Liabilities |
| 10.80B | 15.05B | 14.91B | 16.03B | 17.10B | 10.80B | Stockholders Equity |
| 4.67B | 3.73B | 3.51B | 3.06B | 2.69B | 4.67B |
| Cash Flow | Free Cash Flow | ||||
| 297.23M | 191.14M | -142.71M | -496.89M | -1.29B | 392.89M | Operating Cash Flow |
| 434.09M | 333.84M | 58.82M | -361.11M | -1.16B | 561.67M | Investing Cash Flow |
| 139.72M | 105.54M | -17.71M | 3.03B | -111.88M | -173.40M | Financing Cash Flow |
| -298.04M | -391.30M | -477.94M | -2.47B | 1.58B | -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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.62B | 14.17 | 6.34% | 2.30% | 21.67% | -17.91% | |
75 Outperform | $2.77B | 15.39 | 21.21% | ― | -0.64% | 30.96% | |
70 Outperform | $4.71B | 16.85 | 7.61% | ― | 2.31% | -18.77% | |
69 Neutral | $4.94B | 14.75 | 21.63% | 1.41% | 3.39% | -16.78% | |
62 Neutral | $11.81B | 10.34 | -7.44% | 2.91% | 7.41% | -7.93% | |
52 Neutral | $9.28B | 38.98 | 22.47% | ― | -8.20% | ― | |
46 Neutral | $2.86B | 7.48 | 12.88% | ― | -5.65% | 78.20% |
* Technology Sector Average
Performance Comparison
INGM
Ingram Micro Holding Corporation
20.05
-4.01
-16.67%
SAIC
Science Applications
105.32
-8.89
-7.78%
WNS
WNS
59.76
9.19
18.17%
DXC
DXC Technology
15.76
-2.69
-14.58%
CNXC
Concentrix
56.61
-2.79
-4.70%
KD
Kyndryl Holdings Incorporation
40.37
14.35
55.15%
Ingram Micro Holding Corporation Corporate Events
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
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.