Ingram Micro Holding Corp (NYSE: INGM)

Sector: Technology Industry: Information Technology Services CIK: 0001897762
Market Cap 5.11 Bn
P/B 1.24
P/E 17.63
P/S 0.10
ROIC (Qtr) 6.49
Div Yield % 1.42
Rev 1y % (Qtr) 7.15
Total Debt (Qtr) 4.27 Bn
Debt/Equity (Qtr) 1.04

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 17.64B provides 4.13x coverage of total debt 4.27B, indicating robust asset backing and low credit risk.
  • Free cash flow of (464.46M) provides excellent 7.85x coverage of dividends (59.15M), indicating sustainable shareholder returns.
  • Robust tangible asset base of 17.64B provides 3.72x coverage of working capital 4.74B, indicating strong operational backing.
  • Tangible assets of 17.64B provide robust 17.06x coverage of other current liabilities 1.03B, indicating strong asset backing.
  • Cash reserves of 802.63M provide solid 3.93x coverage of other non-current liabilities 204.46M, indicating strong liquidity.

Bear case

  • Operating cash flow of (334.47M) barely covers its investment activities of 211.39M, with a coverage ratio of -1.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 802.63M against inventory of 5.37B, the 0.15 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • The company's operating cash flow of (334.47M) shows concerning coverage of stock compensation expenses of 49.17M, with a -6.80 ratio indicating potential earnings quality issues.
  • Free cash flow of (464.46M) provides weak coverage of capital expenditures of 129.99M, with a -3.57 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (334.47M) provides minimal -1.78x coverage of tax expenses of 188.03M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.44 1.44
EV to Cash from Ops. EV/CFO -25.20 5.63
EV to Debt EV to Debt 1.97 8.06
EV to EBIT EV/EBIT 10.70 -4.05
EV to EBITDA EV/EBITDA 7.43 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -18.15 -1.66
EV to Market Cap EV to Market Cap 1.65 1.35
EV to Revenue EV/Rev 0.17 57.14
Price to Book Value [P/B] P/B 1.24 3.34
Price to Earnings [P/E] P/E 17.63 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.90 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 18.40 0.66
Dividend per Basic Share Div per Share (Qtr) 0.23 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -11.53 6.24
Interest Coverage Int. cover (Qtr) 2.54 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.22 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.51 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.49 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.40 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -6.79 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -2.90 97.07
EPS Growth (1y) % EPS 1y % (Qtr) -13.89 147.29
FCF Growth (1y) % FCF 1y % (Qtr) -286.23 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.40 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.65 0.78
Cash Payout Ratio Cash Payout (Qtr) -0.29 0.01
Cash Ratio Cash Ratio (Qtr) 0.07 0.66
Current Ratio Curr Ratio (Qtr) 1.41 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 1.04 0.88
Interest Cover Ratio Int Coverage (Qtr) 2.54 -319.17
Times Interest Earned Times Interest Earned (Qtr) 2.54 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.20 -550.76
EBIT Margin % EBIT Margin % (Qtr) 1.54 -775.74
EBT Margin % EBT Margin % (Qtr) 0.94 -827.89
Gross Margin % Gross Margin % (Qtr) 6.80 24.07
Net Profit Margin % Net Margin % (Qtr) 0.60 -830.34