One-glance verdict
Within fair range
$196.21 our estimate vs market $178.35
Wall Street consensus: $163.75 (-16.5% lower than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
Insight Enterprises, Inc.
NSIT · NMS · Technology · Electronics & Computer Distribution
Current price
$178.35
52-week range
$63.62 - $182.12
Market cap
$5.23B
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 35.7% above its 5-year average P/E.
What this company does
Insight Enterprises, Inc.
Insight Enterprises helps businesses by selling them the technology they need, like computers, software, and services that help them manage everything from cloud computing to cybersecurity. Most of their money comes from selling these technology solutions and providing ongoing support and subscriptions for software and cloud services, which provides a steady stream of income (known as recurring revenue). This means they have a predictable business model as clients often stick with them for ongoing needs.
How the company got here
Insight Enterprises was founded in 1988 by brothers Eric and Tim Crown, initially as a mail-order business selling computer storage. It quickly expanded to include a full line of computers and accessories, and by 1995, it was a publicly traded company on NASDAQ. Over the years, Insight has grown through strategic acquisitions, transforming from a hardware and software reseller into a global IT solutions integrator. This evolution involved acquiring companies that specialized in areas like cloud computing, cybersecurity, and digital engineering, broadening its service offerings and expertise to meet the changing needs of businesses in the technology landscape.
What it actually does
Insight Enterprises acts as a technology solutions integrator, helping businesses manage and modernize their IT infrastructure. They offer a wide range of products and services, including hardware, software, cloud solutions, cybersecurity, data and artificial intelligence, and digital workplace tools. Essentially, Insight helps companies buy, implement, manage, and update their technology, acting as a bridge between complex technology and business needs. They work with a variety of clients, from small to medium-sized businesses to large enterprises and government agencies, across different industries like healthcare, finance, and manufacturing.
Cloud Solutions
This part of Insight's business focuses on helping clients move to and manage their operations in the cloud. This includes services for public cloud platforms like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform (GCP). Insight assists businesses in planning their move to the cloud, migrating their existing systems, and optimizing their cloud environments for better performance and cost-efficiency. They also offer tools and services for managing multiple cloud platforms simultaneously, helping clients control their cloud spending and ensure security.
Cybersecurity and Networking Solutions
This segment provides solutions to protect businesses from cyber threats and ensure their networks are secure and efficient. Insight helps organizations design, implement, and manage security architectures that safeguard their digital assets. This includes services related to network security, threat detection, and incident response, ensuring that businesses can operate safely in an increasingly digital world. They also focus on modernizing networks to support evolving business needs and technologies.
Digital Workplace and Device Solutions
This area of Insight's business focuses on equipping employees with the technology they need to work effectively. This includes providing hardware like laptops, desktops, and other devices, as well as software and services that enhance productivity and collaboration. Insight helps businesses manage their device lifecycle, from procurement and deployment to support and eventual retirement, ensuring that employees have the tools they need to perform their jobs efficiently and securely.
Data and Artificial Intelligence (AI) Solutions
Insight helps businesses leverage their data and artificial intelligence capabilities to drive better business outcomes. This involves providing solutions for data analytics, AI implementation, and machine learning. They assist clients in identifying and prioritizing AI use cases that can lead to tangible business results, such as improving operations, enhancing customer experiences, or developing new products. This segment is crucial for companies looking to gain a competitive edge through data-driven insights and intelligent automation.
What management is betting on now
Insight's management is focused on accelerating the company's shift towards higher-value services, particularly in areas like cloud, cybersecurity, and artificial intelligence. They are investing in organic growth through automation and expanding their technical and sales talent. Strategic acquisitions are also a key part of their plan to strengthen capabilities in AI and cybersecurity. The company aims to achieve profitable growth by outgrowing the market and expanding its margins, while also returning capital to shareholders through a disciplined approach to capital allocation.
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 $196.21 vs current price $178.35
Wall Street consensus is the average analyst price target: $163.75 (-16.5% lower than our fair-value estimate).
Our most-likely fair value is $196.21 a share — about 10.0% away from today's price of $178.35, 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 $6.03B Interest coverage 3.99x -10% 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.
Total debt $3.48B Interest coverage 3.43x -23% vs NSIT Carries about 1.3x less 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 35.7% 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)
25.96x
Forward P/E
13.46x
P/B
3.28x
P/S
0.61x
EV/EBITDA
10.57x
PEG ratio
1.13x
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
6.87
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
0.0%
Payout ratio
0.0%
Last ex-div date
—