Company Overview
Insight Enterprises, Inc. operates within the Technology sector as a primary entity in the Electronics & Computer Distribution industry, providing comprehensive information technology solutions including hardware, software, and services across the United States, North America, Europe, the Middle East, Africa, and the Asia-Pacific region. The company specializes in delivering multicloud solutions that manage and support cloud environments and data centers, facilitating essential digital infrastructure for enterprise clients globally. With a market capitalization of $2.19B and an annual revenue of $8.25B, the organization employs a workforce of 14,505 individuals to execute its distribution and service models. These valuation and revenue figures indicate that Insight Enterprises maintains a substantial operational footprint within the technology supply chain, though its market cap relative to its $8.25B revenue suggests a specific valuation multiple characteristic of its current business model and investor perception.
Financial Health
The company reported a trailing twelve-month revenue of $8.25B, generating net income of $157.35M and an EBITDA of $552.82M, which highlights a significant gap between gross revenue and net income that reveals a substantial cost structure comprising operating expenses, taxes, and interest obligations. After accounting for these costs, the business produced free cash flow of $233.37M, providing the financial flexibility required to fund capital expenditures, service growth initiatives, or manage liquidity needs without relying solely on external financing. Profitability analysis shows a gross margin of 21.4%, indicating the efficiency of the cost of goods sold relative to sales, while an operating margin of 7.1% and a profit margin of 1.9% demonstrate how operating expenses and the tax environment impact the final bottom line. Regarding liquidity and leverage, the company holds $358.02M in cash against total debt of $1.67B, resulting in a debt-to-equity ratio of 101.06, which characterizes a leveraged balance sheet where debt significantly outweighs equity capitalization. Short-term liquidity is assessed via a current ratio of 1.25, suggesting the company possesses sufficient current assets to cover its current liabilities, although the margin is relatively tight. Management effectiveness is reflected in a Return on Equity of 9.2% and a Return on Assets of 3.4%, metrics that indicate the company generates moderate returns on shareholder capital and utilizes its asset base to generate earnings, respectively.
Valuation Assessment
Valuation metrics for Insight Enterprises, Inc. show a trailing P/E ratio of 14.55 and a forward P/E of 6.28, implying that the market expects earnings growth to accelerate significantly in the future relative to current performance levels. The price-to-book ratio stands at 1.33, indicating that the stock trades at a modest premium above its book value, suggesting investors value the company's intangible assets and growth prospects beyond its tangible net worth. Alternative valuation multiples include a price-to-sales ratio of 0.27 and an EV/EBITDA of 6.33, which suggest the company is valued on a low multiple relative to its sales and cash-flow-generating capability. In terms of trading range, the stock has a 52-week high of $160.68 and a 52-week low of $70.32; without the current price explicitly listed in the provided facts, the position within this range cannot be numerically calculated, but the wide spread indicates significant price volatility over the past year. The beta value of 0.89 signifies that the stock's price volatility is slightly lower than the broader market, meaning it tends to move less aggressively than the overall market index during periods of fluctuation.
Growth & Income
Growth dynamics for the company include a revenue growth rate of -1.2% year-over-year and an earnings growth rate of 66.5% year-over-year, indicating that earnings are growing at a pace substantially faster than revenue, which often implies improved operational efficiency or a one-time gain impacting the bottom line. As a non-dividend payer, Insight Enterprises does not distribute a dividend yield or maintain a payout ratio, as evidenced by the 0.0% payout ratio, meaning the company chooses to reinvest its earnings into business growth rather than returning cash to shareholders via dividends. This reinvestment strategy is typical for growth-oriented technology distributors seeking to expand their service offerings or geographic reach rather than prioritizing immediate shareholder yield. The overall growth and income profile is defined by negative revenue expansion coupled with strong earnings acceleration and a lack of dividend distribution, creating a capital allocation strategy focused entirely on internal expansion and operational scaling.