Insight Enterprises, Inc.
Insight Enterprises, Inc. Fundamental Analysis
Insight Enterprises, Inc. (NSIT) shows weak financial fundamentals with a PE ratio of 13.30, profit margin of 1.91%, and ROE of 9.79%. The company generates $8.2B in annual revenue with weak year-over-year growth of -5.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NSIT's fundamental strength across five key dimensions:
Efficiency Score
WeakNSIT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNSIT trades at attractive valuation levels.
Growth Score
WeakNSIT faces weak or negative growth trends.
Financial Health Score
ExcellentNSIT maintains a strong and stable balance sheet.
Profitability Score
WeakNSIT struggles to sustain strong margins.
Key Financial Metrics
Is NSIT Expensive or Cheap?
P/E Ratio
NSIT trades at 13.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NSIT's PEG of 1.18 indicates fair valuation.
Price to Book
The market values Insight Enterprises, Inc. at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.08 times EBITDA. This is generally considered low.
How Well Does NSIT Make Money?
Net Profit Margin
For every $100 in sales, Insight Enterprises, Inc. keeps $1.91 as profit after all expenses.
Operating Margin
Core operations generate 4.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.79 in profit for every $100 of shareholder equity.
ROA
Insight Enterprises, Inc. generates $1.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Insight Enterprises, Inc. generates limited operating cash flow of $303.91M, signaling weaker underlying cash strength.
Free Cash Flow
Insight Enterprises, Inc. produces free cash flow of $279.38M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.01 in free cash annually.
FCF Yield
NSIT converts 13.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NSIT Stacks Against Its Sector Peers
| Metric | NSIT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.30 | 33.98 | Better (Cheaper) |
| ROE | 9.79% | 1007.00% | Weak |
| Net Margin | 1.91% | -47797.00% (disorted) | Weak |
| Debt/Equity | 0.96 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.25 | 5.66 | Neutral |
| ROA | 1.73% | -287350.00% (disorted) | Weak |
NSIT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Insight Enterprises, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.89%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
72.41%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
444.74%
Industry Style: Growth, Innovation, High Beta
High Growth