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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Insight Enterprises, Inc. (XNAS:NSIT) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
NSIT
Name:
INSIGHT ENTERPRISES, INC. (XNAS:NSIT)
Sector:
- 309984.00K
Industry:
Information Technology Services
CEO:
Mr. Kenneth Lamneck
Total Employees:
11,624
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -111.12% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF INSIGHT ENTERPRISES, INC.(NSIT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND INFORMATION TECHNOLOGY SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
87.92
One Month Price Target:
$88.7
Six Month Price Target :
$92.59
Likely Price in One Year's Time:
Ticker:
$97.27
Likely Trading Range Today Under (Normal Volatility)
$87.62
Price Upper limit ($) :
$88.34
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$83.63
This week:
$78.33
This month :
$68.74
Other Primary facts
Market Cap:
2.96B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
35.09M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.15%
-16.25%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$107.81
$98.63
$68.03
$77.21
Medium risk (<10%) entry points
Buy Call
Sell Call
$95.64
Buy Put:
Sell Put:
$93.68
$80.17
$82.16
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
NSIT
Sharpe Ratio:
2.54%
Comparison:
NSIT, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 40.22% higher than the industry
& ratio is 11.49% higher than the market/S&P 500 average
Average Returns/Yield of
NSIT
Daily returns:
0.07%
Weekly returns:
0.35%
Monthly returns:
1.40%
Yearly returns:
14.44%
Comparison of returns:
Average annual returns/yield (last 3 years) is 16.48% above industry average
Classification:
NSIT, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.23
Statistical test of Returns:
NSIT has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.41%
Weekly Volatility:
5.39%
Monthly Volatility:
10.77%
Yearly Volatility:
37.32%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.74%
Volatility in last five trading days has been -69.34% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.88%
Weekly VaR:
-10.91%
Monthly VaR:
-21.81%
How Much Can the price of
NSIT
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-75.55%
This translates to price declining to:
$71.67
This translates to price declining to:
$21.49
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
NSIT is a 53.94% riskier investment compared to the market/S&P 500 & is 31.88% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -20.61% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
NSIT
Beta in relation to market/S&P 500--1.58
Expected beta in 1 year's time:
1.016
Expected beta in 3 year's time:
1.437
Unlevered (debt free) Beta:
1.339
Beta in relation to Nasdaq (XNAS):
0.777
Beta in relation to all global stocks::
0.757
Beta Comparison & Analysis
Beta of competitors/peers::
1.396
Beta is 13.33% higher than peers
Average Industry Beta:
1.209
Beta is 30.91% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
15.11%
Sustainable growth rate is -89.85% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.028
Alpha is -6.00% below industry average alpha yield
Alpha is 180% higher than market/& is unsustainably high
Analysis of Cost of Capital of
NSIT
Equity cost of capital:
0.140
Equity cost of capital is 22.39% above industry mean WACC
Unlevered (without debt) cost of capital:
11.84%
Before-tax cost of debt:
5.38%
After-tax cost of debt:
4.25%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.25%
WACC is 49.83% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$281.92
Revenue growth rate per share of (3Y):
2
Annual revenue growth rate is 92.24% above the industry average
EPS:
$6.30
Expected Annual growth rate of EPS (3Y):
9.84%
Expected future EPS growth rate is 190.05% higher than the Information Technology Services industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$10.63
EBITDA per share
$11.50
Valuation Analysis Today of
NSIT
P/E Ratio:
12.3
P/E Ratio of Competitors/Peers:
67.66
P/E ratio is -81.82% lower than main peers & is -74.09% lower than the industry
Stock price/value with industry average P/E ratio: $299.05
NSIT is -70.60% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.31
Price to sales ratio is -91.46% below the industry mean
P/B (Price to book value ratio):
2
-
-
Net income growth rate (3Y):
36.21%
Net income growth rate is -99.95% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
24.23%
Net debt to equity ratio:
39.19%
Debt to assets ratio:
7.69%
Net debt to assets ratio:
12.44%
Debt-to-asset ratio is -87.88% below industry average
Ability to repay debt:
Interest coverage ratio:
10.45
Interest coverage ratio is -74.98% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 69.03%
Analysis of Key Statistics
Correlation of price movement with the market:
0.657
Statistical significance of correlation:
NSIT has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.596
Stock price is 10.31% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.596
Correlation of price movement with Nasdaq (^IXIC):
0.019
Covariance of price movement with the market:
0.026
Kurtosis
11.653
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.258
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
NSIT
Gross Profit Margin Ratio:
61%
Operating Profit Margin Ratio:
3.49%
Operating profit margin is -150.21% lower than the industry
Net Profit Margin Ratio:
61%
Effective Tax Rate:
25.02%
Effective tax rate is -5.22% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
15.13%
Return on equity (ROE) is -73.11% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.80%
Return on assets (ROA) is 5523.38% higher than the industry
Financial Leverage:
1.1x
Current Ratio:
1.41
Current ratio is -39.22% below industry average
Cash Conversion Cycle (days):
36
Cash conversion cycle is -4.04% below industry average
The remaining useful life of property plant & equipment is: 0.3 years
Stock based compensation to net income ratio:
2.15%
In-depth Efficiency Analysis
Revenue generated per employee:
851.2K
Each employee generates 101% more revenue than industry average revenue per employee
EBITDA generated per employee:
34.7K
Each employee generates -22% less EBITDA than industry average revenue per employee
Profit generated per employee:
20.0K
Each employee generates 135% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 26.7K
Each employee generates 300% more free cash flow than industry average revenue per employee
Assets/Capital per employee
93.0K
Each employee generates 300% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
NSIT
SPS COMMERCE, INC. (XNAS:SPSC)
BIGCOMMERCE HOLDINGS, INC. (XNAS:BIGC)
LIVEPERSON, INC. (XNAS:LPSN)
STAMPER OIL & GAS CORP. (XTSX:STMP)
VIASAT, INC. (XNAS:VSAT)
MANTECH INTERNATIONAL CORPORATION (XNAS:MANT)
VNET Group, Inc. (XNAS:VNET)
Cerence Inc. (XNAS:CRNC)
AMBARELLA INC (XNAS:AMBA)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�8%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
9.89B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
8.40B
1.49B
-
-
1.14B
-
-
1.14B
-
38.62M
54.51M
403.64M
344.89M
232.81M
310.51M
77.71M
232.81M
Statement of Cash Flow
Date:
Period:
13.31M
Differed Income Tax :
- 1715.00K
Stock Based Compensation :
5.01M
Change in Working Capital :
- 360024.00K
Accounts Receivables:
- 103326.00K
Other Working Capital:
-
Other Non-Cash Items:
2.55M
Net Cash Provided by Operating Activities:
- 284239.00K
Investments in PP&E:
- 25745.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
114.76M
-
114.76M
3.03B
383.40M
244.38M
3.77B
189.72M
429.22M
207.12M
-
-
255.49M
1.08B
-
4.85B
1.94B
344.90M
-
-
390.70M
2.68B
373.02M
223.26M
632.91M
-
3.31B
351.00K
1.24B
- 25229.0K
321.96M
March 31, 2022 at 6:00:00 AM
9.54B
1.54B
4.85B
-
717.92M
603.2M
-
-
- 25745.00K
- 831440.00K
-
-
-
1.15B
319.95M
969.00K
10.94M
116.92M
105.98M
- 284239.00K
- 25745.00K
- 309984.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
NSIT
2023
2024
2025
2026
2027
$97.76
$220.29
$243.71
$269.62
$298.29