Insight Enterprises Inc (NSIT) stock analysis

P/E above its 5-year median

Insight Enterprises's P/E of 28.5 is above its own 5-year median of 20.0.

P/E above the industry

Insight Enterprises's P/E of 28.5 is above the Nonstore Retailers median of 20.2.

EV/EBITDA above its 5-year median

Insight Enterprises's EV/EBITDA of 12.6 is above its 5-year median of 10.8.

P/B above the industry

Insight Enterprises's price-to-book of 3.17 is above the Nonstore Retailers median of 3.15.

Trading above fair value

The share price of $169.44 is above our fair value estimate of $157.67.

Margin of safety under 20%

The price is 7.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -14.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 27.6% over the last twelve months, against a 5-year average of -1.8% a year.

Growing faster than the industry

Revenue grew 9.0% over the last twelve months; the Nonstore Retailers median is 5.9%.

Guidance raised

Insight Enterprises raised its full year 2026 interest and other expenses outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 22.0% over the last twelve months, against 20.8% a year earlier.

Return on equity under 15%

Return on equity was 11.5% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Insight Enterprises's return on equity of 11.5% is above the Nonstore Retailers median of 1.4%.

Earnings shrank over 5 years

Net income shrank 1.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.0% over the last twelve months, against a 5-year average of 2.6%.

Net margin above the industry

Insight Enterprises's net margin of 2.0% is above the Nonstore Retailers median of -0.2%.

High debt

Debt is 95.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 32.7% five years ago to 95.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.2% of total debt.

Interest not well covered

Operating income covers interest expense 3.8 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.19 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.57; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Insight Enterprises has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.