Insight Enterprises Inc
NASDAQ:NSIT
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Intrinsic Value
The intrinsic value of one NSIT stock under the Base Case scenario is 170.99 USD. Compared to the current market price of 149.95 USD, Insight Enterprises Inc is Undervalued by 12%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
Valuation Backtest
Insight Enterprises Inc
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Fundamental Analysis
Economic Moat
Insight Enterprises Inc
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Insight Enterprises Inc. is a leading global provider of technology solutions and services, dedicated to helping businesses harness the power of technology to drive innovation and efficiency. Founded in 1988, this Arizona-based company has built a strong reputation in digital transformation, offering a wide array of services that range from software and hardware procurement to cloud solutions and IT management. With a customer-centric approach, Insight partners with renowned firms such as Microsoft, Amazon Web Services, and Cisco to deliver tailored solutions that address the unique challenges of various industries. Over the years, Insight has established itself as a trusted advisor, enablin...
Insight Enterprises Inc. is a leading global provider of technology solutions and services, dedicated to helping businesses harness the power of technology to drive innovation and efficiency. Founded in 1988, this Arizona-based company has built a strong reputation in digital transformation, offering a wide array of services that range from software and hardware procurement to cloud solutions and IT management. With a customer-centric approach, Insight partners with renowned firms such as Microsoft, Amazon Web Services, and Cisco to deliver tailored solutions that address the unique challenges of various industries. Over the years, Insight has established itself as a trusted advisor, enabling organizations to optimize their IT infrastructures and accelerate their growth in an increasingly digital landscape.
For investors, Insight Enterprises presents an appealing opportunity not just due to its robust service offerings, but also its consistent financial performance and strategic growth initiatives. The company has consistently delivered strong revenue growth, buoyed by the rising demand for IT services, particularly in cloud computing and cybersecurity. Insight's well-diversified client base, which spans various sectors from healthcare to finance, further mitigates risk and enhances stability. Moreover, with a strong commitment to innovation and a focus on expanding its services in emerging technologies, Insight is well-positioned to capture significant market opportunities as digital transformation accelerates worldwide. For those looking to invest in a company that sits at the intersection of technology and business, Insight Enterprises stands out as a compelling choice, promising both growth and stability in the rapidly evolving tech landscape.
Insight Enterprises, Inc. is a leading global technology company that provides a range of services and solutions. The core business segments of Insight Enterprises include:
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Product Sales: This segment involves the procurement and sale of IT hardware and software solutions. It encompasses a wide range of products, including servers, networking equipment, software licenses, and related technology products from various vendors.
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Services: Insight offers a variety of IT services that cater to the needs of its clients. These services include IT consulting, systems integration, cloud computing solutions, and managed services. The goal is to help businesses optimize their IT infrastructure and operations.
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Cloud Solutions: This segment focuses on helping organizations migrate to and manage cloud-based services. Insight provides guidance on cloud strategy, implementation of cloud solutions, and ongoing support for businesses transitioning to cloud environments.
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E-commerce: Insight operates digital platforms that allow customers to purchase technology products and services online. This segment emphasizes a user-friendly buying experience and efficient order fulfillment.
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Professional Services: This includes specialized offerings such as technology assessments, project management, and training services. Insight works alongside organizations to ensure successful technology deployments and effective change management.
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Vertical Market Solutions: Insight tailors specific solutions for various industries such as health care, education, and government. This segment focuses on addressing the unique challenges and requirements of different sectors.
Insight Enterprises’ broad range of services and strong partnerships with major technology vendors enable the company to maintain a competitive edge and deliver comprehensive solutions to its clients.
Insight Enterprises Inc. (NASDAQ: INSG) has several unique competitive advantages that can distinguish it from its rivals in the technology solutions and services market:
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Integrated Solutions Provider: Insight Enterprises positions itself as an integrated solutions provider, offering a wide array of services that include hardware, software, cloud services, and IT consulting. This allows them to serve as a one-stop shop for their clients, which can be particularly appealing to companies looking to streamline their technology procurement and service needs.
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Strong Partnerships: Insight has established strategic partnerships with leading technology vendors, such as Microsoft, Cisco, and Dell. These relationships can give them preferential pricing, early access to new products, and the ability to provide enhanced support and services to their clients.
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Focus on Digital Transformation: The company has a strong emphasis on helping businesses with their digital transformation journey. As companies increasingly look to innovate and modernize their IT infrastructure, Insight's expertise and tailored solutions can be a significant advantage.
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Global Reach and Scalability: With a presence in multiple countries, Insight Enterprises can cater to multinational clients and provide consistent service delivery worldwide. This global footprint enhances their credibility and ability to handle large-scale projects.
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Customer-Centric Approach: Insight Enterprises places a high emphasis on client relationships and tailored solutions. Their consultative approach helps in understanding specific customer needs, leading to better client retention and satisfaction.
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Experienced Workforce: Having a skilled and knowledgeable workforce, particularly in technology and IT consulting, allows Insight to provide high-quality services and innovative solutions, which can improve customer outcomes and loyalty.
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Diverse Customer Base: The company serves a wide variety of industries, including healthcare, education, and government. This diversification can provide stability and reduce dependency on cyclical sectors.
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Sustainability Initiatives: Insight is increasingly focused on sustainability and helping clients with eco-friendly technology solutions. This can enhance their reputation and attract clients who prioritize environmental responsibility.
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Robust Analytics and IT Solutions: Their capability in analytics and IT strategy consulting gives them a competitive edge in helping clients make data-driven decisions, which is increasingly important in today’s business landscape.
These competitive advantages can position Insight Enterprises Inc. well against its rivals as they continuously adapt to changing market conditions and customer needs.
Insight Enterprises Inc., like any other company in the technology solutions and IT services space, faces a variety of risks and challenges that could impact its operations and growth. Here are some key areas of concern:
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Market Competition: The IT services and solutions market is highly competitive, with numerous players ranging from large multinational corporations to smaller niche firms. Increased competition can lead to price wars, reduced margins, and loss of market share.
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Economic Factors: Economic downturns or uncertainty can affect customer budgets for IT spending. Companies may prioritize cost-cutting, which could lead to reduced demand for Insight's services.
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Technological Change: The rapid pace of technological advancement means that Insight must continuously innovate and adapt its offerings. Failure to keep up with trends such as cloud computing, artificial intelligence, and cybersecurity can render its services less relevant.
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Supply Chain Disruptions: Global supply chain issues, which have been exacerbated by events like the COVID-19 pandemic, can impact the availability of hardware and components necessary for delivering IT solutions.
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Cybersecurity Threats: As a provider of IT solutions, Insight is vulnerable to cybersecurity threats. A significant breach could damage its reputation, lead to financial losses, and undermine customer trust.
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Talent Acquisition and Retention: The tech industry faces a talent shortage, particularly for skilled IT professionals. Insight may struggle to recruit and retain top talent, affecting its ability to deliver quality services.
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Regulatory Changes: Changing regulations regarding data privacy, security, and technology usage can impose additional compliance costs and operational challenges on the company.
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Customer Dependence: A significant portion of revenue may come from a limited number of large clients. Loss of any major client could result in substantial revenue decline.
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Global Expansion Risks: If Insight continues to pursue international markets, it needs to navigate various cultural, political, and economic environments, which can present unforeseen challenges.
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Mergers and Acquisitions: If Insight pursues aggressive M&A strategies, integration challenges and cultural mismatches could pose risks to successful integration.
To navigate these risks, Insight Enterprises Inc. will need to maintain a strong focus on innovation, agile responses to market changes, effective talent management, and robust cybersecurity measures. Regular assessment of market conditions and proactive strategic planning will also be key to mitigating these challenges.
Revenue & Expenses Breakdown
Insight Enterprises Inc
Balance Sheet Decomposition
Insight Enterprises Inc
Current Assets | 4.7B |
Cash & Short-Term Investments | 317.4m |
Receivables | 4B |
Other Current Assets | 359.8m |
Non-Current Assets | 2.6B |
PP&E | 214.9m |
Intangibles | 1.3B |
Other Non-Current Assets | 1.1B |
Current Liabilities | 3.7B |
Accounts Payable | 2.9B |
Accrued Liabilities | 378.8m |
Other Current Liabilities | 446.9m |
Non-Current Liabilities | 1.8B |
Long-Term Debt | 754.4m |
Other Non-Current Liabilities | 1B |
Earnings Waterfall
Insight Enterprises Inc
Revenue
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8.9B
USD
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Cost of Revenue
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-7.1B
USD
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Gross Profit
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1.8B
USD
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Operating Expenses
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-1.3B
USD
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Operating Income
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479.7m
USD
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Other Expenses
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-176.4m
USD
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Net Income
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303.3m
USD
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Free Cash Flow Analysis
Insight Enterprises Inc
USD | |
Free Cash Flow | USD |
Insight Enterprises reported disappointing Q3 results, with revenue dropping 8% to $2.1 billion, primarily due to decreasing product sales. However, gross profit rose 6%, driven by strong growth in cloud and core services, translating to improved gross margins of 20.7%. Looking forward, the company has adjusted its 2024 guidance, projecting mid-single-digit gross profit growth and adjusted diluted EPS between $9.40 and $9.70. Despite current challenges in the enterprise segment, especially with hardware sales, management remains optimistic about growth in cloud services and plans to reduce operating expenses by $20-$25 million, aiming for improved performance by 2025.
What is Earnings Call?
NSIT Profitability Score
Profitability Due Diligence
Insight Enterprises Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Insight Enterprises Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
NSIT Solvency Score
Solvency Due Diligence
Insight Enterprises Inc's solvency score is 54/100. The higher the solvency score, the more solvent the company is.
Score
Insight Enterprises Inc's solvency score is 54/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
NSIT Price Targets Summary
Insight Enterprises Inc
According to Wall Street analysts, the average 1-year price target for NSIT is 209.51 USD with a low forecast of 191.9 USD and a high forecast of 231 USD.
Dividends
Current shareholder yield for NSIT is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Ownership
NSIT Insider Trading
Buy and sell transactions by insiders
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Profile
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Industry
Market Cap
Dividend Yield
Description
Insight Enterprises, Inc. is a global provider of information technology, services, and cloud solutions to worldwide enterprises, governments, schools, and healthcare organizations. The company is headquartered in Chandler, Arizona and currently employs 11,624 full-time employees. The firm provides technology, solutions and services to help its clients maximize the value of its information technology and drive (digital) transformation. The Company’s geographical segments include North America; Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). Its offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. The Company’s offerings in the remainder of its EMEA and APAC segments consist of software and certain software-related services and cloud solutions. The company owns or leased approximately two million square feet of office and warehouse space. The firm owns or leases office and warehouse facilities in Canada and in over 11 countries in EMEA and its leases office facilities in approximately six countries in APAC. Its subsidiaries include 3683371 Canada, Inc., Action Ltd., Calence, LLC, Docufile Limited and Ignia Pty Ltd.
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IPO
Employees
Officers
The intrinsic value of one NSIT stock under the Base Case scenario is 170.99 USD.
Compared to the current market price of 149.95 USD, Insight Enterprises Inc is Undervalued by 12%.