Insight Enterprises (NSIT) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: N/A
• Average Volume (3M): 364.95K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.24
• Revenue Growth: -7.61%
• EPS Growth: -50.01%
• Country: US
• Employees: 14,324
• Sector: Technology
• Sector Strength: 85
• Industry: Technology Distributors
• EPS (TTM): 2.45
• Shares Outstanding: 31,470,776
• 10 Day Avg. Volume: 365,183
• 30 Day Avg. Volume: 364,952
• 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: 1.38
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 14.81
• 1Y Price Target: $154.50
• Price Target Upside: 18.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $134.00 ▲(2.95% 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

Earnings

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

Growth Prospects

An acceleration of revenue and gross profit growth is expected in 2026 as the device cycle strengthens and transformation initiatives gain traction in a better demand environment.

Investment Rating

Maintaining an OUTPERFORM investment rating on NSIT shares with a 12-month price target of $164, indicating an upside potential of 38%.

Negative Factors

Earnings Forecast

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

Gross Profit Performance

Insight reported Q4/24 gross profit of $439.6 million, which was 2% less than the forecast.

Revenue Performance

The company reported total net revenue of $2.09 billion, which was 3% less than both the forecast of $2.15 billion and the FactSet consensus forecast of $2.16 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 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: Neutral
• Last Price: 130.16
• 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 Neutral. The current price of 130.16 is above the 20-day moving average (MA) of 127.37, below the 50-day MA of 134.57, and below the 200-day MA of 146.34, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NSIT.

Insight Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	79 Outperform	$12.21B	17.31	8.83%	1.16%	6.60%	19.93%
CNXN	74 Outperform	$1.63B	19.52	9.78%	0.86%	4.94%	-1.79%
AVT	72 Outperform	$4.55B	19.95	4.83%	2.42%	-6.55%	-49.61%
SCSC	71 Outperform	$955.26M	14.50	7.82%	―	-6.72%	-1.14%
ARW	70 Outperform	$6.51B	14.28	7.74%	―	-3.95%	-16.72%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%
NSIT	61 Neutral	$4.10B	31.06	8.67%	―	-7.61%	-50.01%

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.