NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Net operating cash flow has decreased to $83.63 million or 24.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for INSIGHT ENTERPRISES INC is currently extremely low, coming in at 14.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.10% trails that of the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- NSIT's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
- The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 17.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Insight Enterprises, Inc. provides information technology (IT) hardware, software, and service solutions to businesses and public sector clients. Its solutions help companies design, enable, manage, and secure their IT environments. The company has a P/E ratio of 9.3, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Insight has a market cap of $733.9 million and is part of the
industry. Shares are up 17% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our