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NSIT: Insight Enterprises Inc

Insight Enterprises, Inc., together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platfor...

152.62 USD
Price
USD
Fair Value
Upside
146.56 - 228.07
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on Insight Enterprises Inc's Rule of 40:

Dec 2016Dec 2018Dec 2020Dec 2022Dec 2024-5.0%0.0%5.0%10.0%15.0%20.0%

Performance Summary
  • Insight's latest twelve months rule of 40 is 1.6%
  • Insight's rule of 40 for fiscal years ending December 2020 to 2024 averaged 6.6%.
  • Insight's operated at median rule of 40 of 10.8% from fiscal years ending December 2020 to 2024.
  • Looking back at the last 5 years, Insight's rule of 40 peaked in December 2021 at 14.3%.
  • Insight's rule of 40 hit its 5-year low in December 2023 of -5.7%.
  • Insight's rule of 40 decreased in 2022 (10.8%, -24.5%) and 2023 (-5.7%, -152.8%) and increased in 2020 (11.9%, +19.1%), 2021 (14.3%, +20.8%), and 2024 (1.6%, -127.5%).

How does Insight Enterprises's Rule of 40 benchmark against competitors?

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We've identified the following companies as similar to Insight Enterprises Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Rule of 40

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rule_of_40
Slug
number
Datatype
text
Format
current
Default Period
FY, Q, LTM, YTD
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Rule of 40 in the efficiency category include:

  • EBIT Margin CAGR (3y) - Three-year compound annual growth rate in EBIT margin.
  • Net Income to Stockholders Margin CAGR (3y) - Three-year compound annual growth rate in net income to stockholders margin.
  • Piotroski Score - A score developed by Stanford accounting professor Joseph Piotroski to find companies with healthy Liquid Balance Sheets, Profitability, and Operating Efficiency.
  • Net Income to Common Margin - A ratio that measures the amount of profit from continuing operations that common shareholders earn on each dollar of revenue earned by the firm.
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Rule of 40

A ratio that measures a company’s combined growth rate and profit margin. Many venture capital and growth equity investors believe this ratio should e...

Definition of Rule of 40

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Rule of 40 measures a company’s combined growth and profit margin. Many venture capital and growth equity investors believe this ratio should exceed 40%, especially for software companies.

Rule of 40 = Levered Free Cash Flow Margin + Revenue Growth

Applying this formula, Insight’s Rule of 40 is calculated below:

Levered Free Cash Flow Margin [ 6.7% ]
(+) Revenue Growth [ −5.2% ]
(=) Rule of 40 [ 1.6% ]

The tables below summarizes the trend in Insight’s rule of 40 over the last five years:

Date Levered Free Cash Flow Margin Revenue Growth Rule of 40
2020-12-31 4.0% 7.9% 11.9%
2021-12-31 1.2% 13.1% 14.3%
2022-12-31 0.3% 10.5% 10.8%
2023-12-31 6.3% −12.0% −5.7%
2024-12-31 6.7% −5.2% 1.6%

Read More: Hacking Software’s Rule of 40


Click the link below to download a spreadsheet with an example Rule of 40 calculation for Insight Enterprises Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-1,568.3%-1,068.3%-568.3%182.4%2006001,000

The chart above depicts the distribution of rule of 40 for companies operating in the Information Technology sector in the Developed economic region. Over 2,310 companies were considered in this analysis, and 2,223 had meaningful values. The average rule of 40 of companies in the sector is -17.2% with a standard deviation of 137.9%.

Insight Enterprises Inc's Rule of 40 of 1.6% ranks in the 37.0% percentile for the sector. The following table provides additional summary stats:

Rule of 40 In The Information Technology Sector
Economic Risk RegionDeveloped
Total Constituents2,315
Included Constituents2,223
Min-1,562.9%
Max180.4%
Median9.4%
Mean-17.2%
Standard Deviation137.9%

You can find companies with similar rule of 40 using this stock screener.

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