One-glance verdict
Within fair range
$161.47 our estimate vs market $165.37
Wall Street consensus: $163.75 (1.4% higher than our fair-value estimate)
2% above our estimate
Fundamentals snapshot
Insight Enterprises, Inc.
NSIT · NMS · Technology · Electronics & Computer Distribution
Current price
$165.37
52-week range
$63.62 - $165.79
Market cap
$4.85B
Balance sheet
Watch
4.43x Stretched
Net debt $1.38B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 13.1% on equity, ahead of 50% of its peers.
- Risk Net debt grew 58.4% over 3 years.
- Risk Stock trades 20.4% above its 5-year average P/E.
What this company does
Insight Enterprises, Inc.
Insight Enterprises acts as a technology partner for other businesses, selling them everything from laptops and software to complex services like cybersecurity and cloud computing. The company makes money by reselling products from major brands like Microsoft and by charging for its own expert support services. This model is important because it can create steady recurring revenue (predictable income from ongoing service contracts and software subscriptions) as businesses continuously rely on Insight to keep their technology running.
How the company got here
Insight Enterprises was started in 1988 by two brothers, Eric and Tim Crown, in Tempe, Arizona, under the name "Hard Drives International." They began by selling computer hard drives through mail-order catalogs, a popular way to shop before the internet. As the personal computer market grew, they expanded to sell a full range of computer parts and accessories and changed the company name to Insight. The company went public in 1995, and over the years, it has grown by acquiring other technology companies to expand its services and reach into new markets in Europe and beyond.
What it actually does
Think of Insight as a technology expert for businesses, schools, and government organizations. Instead of just selling a company a laptop or a piece of software, Insight helps them figure out exactly what technology they need and how to make it all work together. They provide everything from computers and servers (the powerful computers that run networks) to complex services like cybersecurity (protecting computer systems from hackers) and cloud computing (storing and accessing data over the internet instead of on a local computer). Insight's main role is to act as a 'solutions integrator,' meaning they bring together the right hardware, software, and services to solve a client's specific technology challenges.
North America
This is Insight's largest and most significant business segment, making up the vast majority of the company's total sales. It serves a wide range of clients across the United States and Canada, including large corporations, medium-sized businesses, and public sector organizations like schools and government agencies. This division provides all of Insight's offerings, from selling hardware like laptops and servers to providing advanced services in areas like cloud computing and cybersecurity.
EMEA (Europe, Middle East, and Africa)
The EMEA segment is a smaller but still important part of Insight's business, covering a wide geographic area that includes countries like the United Kingdom and Germany. Similar to the North American division, it helps businesses and organizations in this region with their technology needs, offering a mix of hardware, software, and IT services. This segment has grown through acquisitions of local technology companies, which has helped Insight expand its presence and capabilities in these markets.
APAC (Asia-Pacific)
This is the smallest of Insight's geographic segments, with a primary focus on countries like Australia and New Zealand. While it represents a smaller portion of the company's overall revenue, it provides the same range of technology products and services as the other divisions. The APAC segment is part of Insight's strategy to be a global technology provider, serving clients in key markets around the world.
What management is betting on now
Insight's leadership is currently focused on a plan called "One Insight," which heavily emphasizes artificial intelligence (AI) and improving the company's efficiency. They are betting that businesses will increasingly need help with AI, so they are investing in both the necessary technology and talented employees to provide AI-related services. The company is also concentrating on growing its more profitable service offerings, like cloud solutions and cybersecurity, rather than just selling hardware. To achieve this, they are working on making their operations more efficient to increase their margins (the profit made on each dollar of sales).
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$111.04M
FY2024 Q4
$200.70M
FY2025 Q1
$70.92M
FY2025 Q2
$-181.90M
FY2025 Q3
$243.49M
FY2025 Q4
$146.80M
FY2026 Q1
$26.39M
FY2026 Q2
$-20.10M
Revenue
$2.40B
Net income
$77.57M
Diluted EPS
2.57
Operating cash flow
$-12.24M
Free cash flow
$-20.10M
Fetching…
Sources
Revenue
$2.13B
Net income
$30.01M
Diluted EPS
0.97
Operating cash flow
$32.38M
Free cash flow
$26.39M
Fetching…
Sources
Revenue
$2.05B
Net income
$51.95M
Diluted EPS
1.56
Operating cash flow
$153.77M
Free cash flow
$146.80M
Fetching…
Sources
Revenue
$2.00B
Net income
$50.95M
Diluted EPS
1.62
Operating cash flow
$249.06M
Free cash flow
$243.49M
Fetching…
Sources
Revenue
$2.09B
Net income
$46.93M
Diluted EPS
1.46
Operating cash flow
$-177.05M
Free cash flow
$-181.90M
Fetching…
Sources
Revenue
$2.10B
Net income
$7.51M
Diluted EPS
0.22
Operating cash flow
$78.05M
Free cash flow
$70.92M
Fetching…
Sources
Revenue
$2.07B
Net income
$37.01M
Diluted EPS
1.02
Operating cash flow
$215.11M
Free cash flow
$200.70M
Fetching…
Sources
Revenue
$2.09B
Net income
$58.21M
Diluted EPS
1.52
Operating cash flow
$124.77M
Free cash flow
$111.04M
Fetching…
Sources
Is it cheap or expensive?
Fair value $161.47 vs current price $165.37
Wall Street consensus is the average analyst price target: $163.75 (1.4% higher than our fair-value estimate).
Our most-likely fair value is $161.47 a share — about 2.4% away from today's price of $165.37, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.4B. Interest coverage 4.4x.
Net debt
$1.38B
Interest coverage
4.43x
Insight Enterprises, Inc.'s profit covers its interest bill about 4.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
NSIT
BASELINE
Insight Enterprises, Inc.
Total debt $1.74B Interest coverage 4.43x This is the baseline the peer rows are being compared against.
Total debt $6.43B Interest coverage 7.28x +64% vs NSIT Carries about 1.6x more debt cushion than NSIT.
Total debt $4.72B Interest coverage 3.99x -10% vs NSIT Has roughly the same debt cushion as NSIT.
Total debt $2.17B Interest coverage 4.36x -1% vs NSIT Has roughly the same debt cushion as NSIT.
Total debt $7.55M Interest coverage 13.47x +204% vs NSIT Carries about 3.0x more debt cushion than NSIT.
What you should know
The case for and against NSIT
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Returns 13.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 58.4% over 3 years.
-
Stock trades 20.4% above its 5-year average P/E.
-
Insider ownership is only 1.3% (peer median: 2.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.03x
Forward P/E
12.48x
P/B
3.04x
P/S
0.57x
EV/EBITDA
9.95x
PEG ratio
0.99x
Profitability
How much profit each dollar creates
Gross margin
22.1%
Operating margin
6.2%
Net margin
2.5%
ROE
13.1%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.09x
Current ratio
1.18x
Quick ratio
1.11x
Total debt
$1.74B
Total cash
$363.48M
Growth
How the business has been compounding
Revenue TTM
$8.58B
Revenue 5Y CAGR
-3.3%
EPS TTM
7.18
EPS 5Y CAGR
-14.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$422.97M
Free CF TTM
$279.31M
FCF margin
3.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—