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Insight Enterprises (NSIT)
NASDAQ:NSIT
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Insight Enterprises
(NASDAQ:NSIT)
69Neutral
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 (NSIT) vs. S&P 500 (SPY)
Market Cap
$4.27B
Dividend YieldN/A
Average Volume (3M)392.43K
Price to Earnings (P/E)20.5
Beta (1Y)1.16
Revenue Growth-5.17%
EPS Growth-9.73%
CountryUS
Employees14,324
SectorTechnology
Sector Strength65
IndustryTechnology Distributors
Share Statistics
EPS (TTM)6.52
Shares Outstanding31,910,334
10 Day Avg. Volume290,839
30 Day Avg. Volume392,426
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.54
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.72
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$157.67Price Target Upside17.82% 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 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 presents a solid financial profile with strong profitability and cash flow management. Despite recent declines in revenue and net income, the company's operational efficiency and cash flow generation provide a stable financial footing. Continued focus on revenue growth and maintaining a balanced leverage will be crucial for sustained financial health.Income Statement
Insight Enterprises shows a strong gross profit margin with consistent profitability across recent years. Despite a slight decrease in revenue over the past year, the company maintains healthy EBIT and EBITDA margins, indicating operational efficiency. However, the recent decline in net income and revenue growth rate suggests potential challenges in sustaining top-line growth.78
Positive
Balance Sheet
The company's balance sheet reflects a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. The return on equity remains stable, indicating efficient use of equity. However, the equity ratio shows a reliance on liabilities, which could pose risk if not managed carefully.72
Positive
Cash Flow
Insight Enterprises demonstrates robust cash flow management, with significant free cash flow and operating cash flow exceeding net income. The company has shown consistent growth in free cash flow, reinforcing its ability to generate cash sustainably. This strength in cash flow management provides a solid foundation for future investments and debt servicing.85
Very Positive
| 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 |
| 6.38B | 6.29B | 5.11B | 4.69B | 4.31B | Total Debt |
| 864.11M | 1.17B | 637.90M | 361.61M | 438.69M | Net Debt |
| 604.88M | 903.64M | 474.26M | 257.77M | 310.37M | Total Liabilities |
| 4.61B | 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
Negative
133.82
Price Trends
146.58
Negative
154.80
Negative
176.32
Negative
Market Momentum
-2.97
Negative
39.25
Neutral
45.38
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 133.82 is below the 20-day moving average (MA) of 134.84, below the 50-day MA of 146.58, and below the 200-day MA of 176.32, indicating a bearish trend. The MACD of -2.97 indicates Negative momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 45.38 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.61B | 18.88 | 9.94% | 0.72% | -1.70% | 4.45% | |
72 Outperform | $5.78B | 15.30 | 6.78% | ― | -15.66% | -54.03% | |
71 Outperform | $4.22B | 13.84 | 6.45% | 2.77% | -12.21% | -51.31% | |
71 Outperform | $783.45M | 13.15 | 6.79% | ― | -15.92% | -25.15% | |
69 Neutral | $4.27B | 20.51 | 14.24% | ― | -5.17% | -9.73% | |
65 Neutral | $9.39B | 13.98 | 8.40% | 1.48% | 4.62% | 16.28% | |
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% |
* Technology Sector Average
Performance Comparison
NSIT
Insight Enterprises
133.82
-44.60
-25.00%
ARW
Arrow Electronics
113.07
-9.64
-7.86%
AVT
Avnet
48.82
1.39
2.93%
CNXN
PC Connection
66.39
7.50
12.74%
SCSC
ScanSource
33.39
-9.05
-21.32%
SNX
TD SYNNEX Corporation
111.84
-2.93
-2.55%
Insight Enterprises Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -3.23%|
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
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.