Insight Enterprises Inc (NASDAQ: NSIT)

Sector: Technology Industry: Electronics & Computer Distribution CIK: 0000932696
Market Cap 2.61 Bn
P/B 1.58
P/E 16.60
P/S 0.32
ROIC (Qtr) 8.08
Div Yield % 0.00
Rev 1y % (Qtr) -1.18
Total Debt (Qtr) 1.36 Bn
Debt/Equity (Qtr) 0.83
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About

Insight Enterprises Inc., a Fortune 500-ranked technology company, is known on the NASDAQ stock exchange by the symbol NSIT. Insight operates in the technology industry, specifically as a solutions integrator that assists clients in modernizing their businesses and maximizing the value of technology. The company conducts its operations in three primary geographic segments: North America, Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC). Insight's main business activities include the sale of hardware, software, and services, which...

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Investment thesis

Bull case

  • Healthy cash reserves of 358.02M provide 44752.50x coverage of short-term debt 8000, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 279.31M exceeds capital expenditure of 24.52M by 11.39x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 7.49B provides 5.50x coverage of total debt 1.36B, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 7.49B provides 5.95x coverage of working capital 1.26B, indicating strong operational backing.
  • Retained earnings of 1.52B provide full 1.12x coverage of long-term debt 1.36B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 303.83M barely covers its investment activities of (309.80M), with a coverage ratio of -0.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 358.02M provide limited coverage of acquisition spending of (285.28M), which is -1.25x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 6.28B relative to inventory of 160.65M (39.10 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 310.67M show weak coverage of depreciation charges of 106.32M, with a 2.92 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 303.83M is outpaced by equity issuance of (151.12M) (-2.01 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Electronics & Computer Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ARW Arrow Electronics, Inc. 7.91 Bn 13.85 0.26 3.09 Bn
2 SNX Td Synnex Corp 6.38 Bn 23.20 0.33 4.61 Bn
3 AVT Avnet Inc 5.42 Bn 26.12 0.23 3.17 Bn
4 NSIT Insight Enterprises Inc 2.61 Bn 16.60 0.32 1.36 Bn
5 CNXN Pc Connection Inc 1.63 Bn 18.18 0.51 0.00 Bn
6 SCSC Scansource, Inc. 0.82 Bn 11.15 0.27 0.10 Bn
7 CLMB Climb Global Solutions, Inc. 0.51 Bn 80.43 1.89 0.00 Bn
8 IZM ICZOOM Group Inc. 0.01 Bn 10.40 0.07 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.38 0.78
EV to Cash from Ops. EV/CFO 11.38 117.90
EV to Debt EV to Debt 2.54 438.44
EV to EBIT EV/EBIT 11.13 15.47
EV to EBITDA EV/EBITDA 7.84 13.22
EV to Free Cash Flow [EV/FCF] EV/FCF 12.38 113.72
EV to Market Cap EV to Market Cap 1.32 1.17
EV to Revenue EV/Rev 0.42 0.54
Price to Book Value [P/B] P/B 1.58 2.70
Price to Earnings [P/E] P/E 16.60 21.87
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.26
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 11.51
Dividend per Basic Share Div per Share (Qtr) 0.00 0.49
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.45
Interest Coverage Int. cover (Qtr) 3.66 -0.62
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 25.77 9.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 38.11 97.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -26.18 -1,335.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.34 -783.61
EBIT Growth (1y) % EBIT 1y % (Qtr) -20.54 -8,097.95
EBT Growth (1y) % EBT 1y % (Qtr) -32.17 -8,103.00
EPS Growth (1y) % EPS 1y % (Qtr) -35.32 22.53
FCF Growth (1y) % FCF 1y % (Qtr) -53.43 -1,628.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.26 3.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.91 2.10
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.07 0.63
Current Ratio Curr Ratio (Qtr) 1.25 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.83 0.40
Interest Cover Ratio Int Coverage (Qtr) 3.66 -0.62
Times Interest Earned Times Interest Earned (Qtr) 3.66 -0.62
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.10 0.27
EBIT Margin % EBIT Margin % (Qtr) 3.77 -0.41
EBT Margin % EBT Margin % (Qtr) 2.74 -0.82
Gross Margin % Gross Margin % (Qtr) 21.40 12.10
Net Profit Margin % Net Margin % (Qtr) 1.90 -1.39