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Insight Enterprises (NSIT)
NASDAQ:NSIT
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Insight Enterprises
(NASDAQ:NSIT)
Rating:68Neutral
Price Target:
$146.00
▲(12.16%Upside)
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
$4.19B
Dividend YieldN/A
Average Volume (3M)339.51K
Price to Earnings (P/E)26.0
Beta (1Y)1.08
Revenue Growth-8.73%
EPS Growth-35.37%
CountryUS
Employees14,324
SectorTechnology
Sector Strength84
IndustryTechnology Distributors
Share Statistics
EPS (TTM)2.06
Shares Outstanding31,928,217
10 Day Avg. Volume243,412
30 Day Avg. Volume339,514
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
$157.67Price Target Upside21.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Insight Enterprises Business Overview & Revenue Model
Company DescriptionInsight Enterprises, Inc. is a global technology company that focuses on providing cutting-edge digital innovation solutions. The company operates in the information technology sector, offering a comprehensive range of IT products and services designed to help businesses implement, maintain, and enhance their technology infrastructure. Insight Enterprises serves a diverse client base, including businesses, government entities, and healthcare organizations, offering solutions such as cloud services, data center transformation, network security, and digital innovation consulting.
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 Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -5.86%|
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 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
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.78
Positive
Balance Sheet
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.74
Positive
Cash Flow
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| 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
Negative
130.17
Price Trends
136.76
Negative
149.63
Negative
168.16
Negative
Market Momentum
-1.89
Positive
42.19
Neutral
29.40
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 130.17 is below the 20-day moving average (MA) of 133.96, below the 50-day MA of 136.76, and below the 200-day MA of 168.16, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.65B | 19.71 | 10.11% | 0.77% | 4.21% | 6.38% | |
73 Outperform | $4.28B | 14.30 | 6.42% | 2.55% | -10.52% | -42.40% | |
71 Outperform | $6.10B | 16.56 | 6.68% | ― | -11.13% | -43.00% | |
70 Outperform | $10.32B | 15.37 | 8.40% | 1.37% | 4.62% | 16.28% | |
68 Neutral | $4.19B | 26.05 | 11.37% | ― | -8.73% | -35.37% | |
67 Neutral | $904.28M | 14.91 | 7.32% | ― | -14.07% | -9.65% | |
62 Neutral | $11.70B | 10.39 | -7.10% | 2.92% | 7.45% | -8.42% |
* Technology Sector Average
Performance Comparison
NSIT
Insight Enterprises
130.17
-67.82
-34.25%
ARW
Arrow Electronics
120.06
-11.86
-8.99%
AVT
Avnet
50.62
-1.72
-3.29%
CNXN
PC Connection
64.88
-1.53
-2.30%
SCSC
ScanSource
41.09
-5.41
-11.63%
SNX
TD SYNNEX Corporation
122.50
-5.48
-4.28%
Insight Enterprises Corporate Events
Stock BuybackBusiness Operations and Strategy
Insight Enterprises Enters Share Repurchase Agreement
Positive
May 27, 2025
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.
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.
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.