Insight Enterprises, Inc. (NSIT)
Valuation Overview•Is Insight Enterprises, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 39/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
NSIT struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-7.5% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 5.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.1B | -5.2% | -7.5% | -0.2% | +4.4% | |
| EBITDA | $133.3M | — | +0.8% | — | — | |
| Net Income | $30.0M | -37.0% | -17.5% | — | +7.6% | |
| EPS (Diluted) | $0.97 | -25.8% | -14.1% | -0.0% | +9.4% | |
| Free Cash Flow | $26.4M | -52.3% | +117.4% | -3.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 22.0% | 19.9% | 18.2% | 16.2% |
| Operating Margin | 5.2% | 4.5% | 4.2% | 3.6% |
| Net Margin | 2.2% | 2.6% | 2.6% | 2.2% |
| FCF Margin | 2.8% | 5.5% | 3.6% | 2.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.45 | $2.88 | +17.6% | ||
| Q1'26 | $2.82 | $2.96 | +5.0% | ||
| Q4'25 | $2.49 | $2.43 | -2.4% | ||
| Q3'25 | $2.49 | $2.45 | -1.6% | ||
| Q2'25 | $2.03 | $2.06 | +1.5% | ||
| Q1'25 | $2.53 | $2.66 | +5.1% | ||
| Q4'24 | $2.37 | $2.19 | -7.6% | ||
| Q3'24 | $2.82 | $2.46 | -12.8% |
Total return is -19.2% (1Y), lagging the benchmark by -44.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +29.2% | +19.9% | — |
| 1Y | -19.2% | -44.2% | — |
| 3YCAGR | -8.8% | -28.8% | — |
| 5YCAGR | +2.0% | -11.3% | — |
| 10YCAGR | +14.8% | +1.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Insight Enterprises, Inc. (NSIT) valuation, health, and returns.
Insight Enterprises, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $95.66)
Insight Enterprises, Inc. has multiple valuation anchors: DCF Intrinsic Value: $95.66 | Peer Relative Fair Value: $147.14 | Wall Street Analyst Target: $87.50 (implying -19.3% upside). A convergence of these signals offers higher conviction.
Insight Enterprises, Inc. displays weak financial health with a composite quality score of 39/100, supported by a Altman Z-Score of 1.4 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 10.3%.
Insight Enterprises, Inc. returns capital via buybacks instead of dividends, carrying a 4.7% buyback yield and reducing outstanding shares by -15.2% in the last 12 months.
Insight Enterprises, Inc.'s current growth trajectory is Accelerating. The company achieved -5.2% 1Y revenue growth and -25.8% 1Y EPS growth, compared to its 3Y revenue CAGR of -7.5%.
Wall Street consensus is Buy based on 7 analysts, beating EPS expectations in 50% of recent quarters with a 2-quarter streak. The consensus price target represents a -19.3% change from current levels.
Investment risks for Insight Enterprises, Inc. include: -56.1% 1-year max drawdown, high beta (1.47x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.47x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.