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Ingram Micro Holding Corporation (INGM)
NYSE:INGM
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Ingram Micro Holding Corporation
(NYSE:INGM)
57Neutral
Positive Factors
Growth Potential
The company returned to year-over-year topline growth in the fourth quarter and is guided to continue this growth in the first quarter of 2025, with confidence in revenue growth for the year.
Market Position
Ingram Micro is positioned as a leader in the IT Distribution market with potential for share gains through its focus on high-growth and high-margin areas like Advanced Solutions, Cloud, and Services.
Revenues
Revenues were solid this past quarter, growing +2.5% y/y and exceeding both expectations and consensus.
Negative Factors
European Market Challenges
A tougher-than-expected European market is a significant headwind to profitability, affecting EPS performance.
Geopolitical Risks
Geopolitical volatility is increasing uncertainty, and while it has not yet affected management's assessment of demand, there is risk as clients may not spend.
Profitability
Profitability, including both gross and operating margins, is underperforming expectations.
Ingram Micro Holding Corporation (INGM) vs. S&P 500 (SPY)
Market Cap
$4.20B
Dividend YieldN/A
Average Volume (3M)395.82K
Price to Earnings (P/E)15.9
Beta (1Y)1.53
Revenue Growth-0.12%
EPS Growth-25.09%
CountryUS
Employees23,500
SectorTechnology
Sector Strength44
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.13
Shares Outstanding234,825,580
10 Day Avg. Volume483,261
30 Day Avg. Volume395,818
Financial Highlights & Ratios
PEG Ratio89.94
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.13Price Target Upside46.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Ingram Micro Holding Corporation Business Overview & Revenue Model
Company DescriptionIngram Micro Holding Corporation (INGM) is a leading global technology and supply chain services company. It operates in multiple sectors, including technology distribution, cloud solutions, and supply chain management. The company offers a wide range of products and services, including IT hardware, software, and related services, helping businesses streamline their technology operations and improve efficiency.
How the Company Makes MoneyIngram Micro generates revenue primarily through the distribution of technology products and services. The company acts as an intermediary between technology manufacturers and resellers, purchasing products in bulk and selling them to a network of resellers, retailers, and other businesses. Key revenue streams include the sale of IT hardware, software, and cloud solutions. Ingram Micro also provides value-added services such as logistics, supply chain management, and cloud platform services, which contribute to its earnings. Strategic partnerships with leading technology vendors and a robust network of channel partners play a significant role in enhancing the company's revenue potential.
Ingram Micro Holding Corporation Financial Statement Overview
Summary
Ingram Micro Holding Corporation demonstrates stability in gross margins but faces challenges in revenue growth and net profitability. The balance sheet suggests high leverage, which could limit financial flexibility. Improvements in operating cash flow are positive, but free cash flow volatility remains a concern. Overall, the company needs to focus on revenue growth and consistent profitability to enhance financial health.Income Statement
The company shows a mixed performance in recent years. Gross profit margins have remained stable, suggesting efficient cost management. However, net profit margins have decreased significantly, indicating challenges in converting revenue into profit. Revenue has been declining, which is a concern for growth. While EBIT and EBITDA margins are reasonable, they are not showing strong upward trends.68
Positive
Balance Sheet
The balance sheet indicates a relatively high debt-to-equity ratio, which poses potential risks regarding financial leverage. The return on equity has been inconsistent, reflecting variable profitability. The equity ratio indicates that a significant portion of assets is financed by liabilities, which could affect financial stability.55
Neutral
Cash Flow
Cash flow from operations has improved recently, but free cash flow has been inconsistent. The company has managed to improve its operating cash flow to net income ratio, indicating better cash generation from operations. However, free cash flow growth remains a concern, impacting long-term financial flexibility.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 47.98B | 48.04B | 50.82B | 54.46B | 47.20B | Gross Profit |
| 3.44B | 3.55B | 3.69B | 4.11B | 3.35B | EBIT |
| 817.92M | 944.35M | 3.25B | 788.95M | 697.77M | EBITDA |
| 1.22B | 1.19B | 3.43B | 1.15B | 892.50M | Net Income Common Stockholders |
| 264.22M | 352.71M | 2.39B | 366.11M | 503.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 918.40M | 948.49M | 1.32B | 1.23B | 671.82M | Total Assets |
| 18.78B | 18.42B | 19.09B | 19.80B | 15.47B | Total Debt |
| 3.82B | 4.40B | 4.79B | 5.16B | 1.48B | Net Debt |
| 2.90B | 3.45B | 3.47B | 3.93B | 808.40M | Total Liabilities |
| 15.05B | 14.91B | 16.03B | 17.10B | 10.80B | Stockholders Equity |
| 3.73B | 3.51B | 3.06B | 2.69B | 4.67B |
| Cash Flow | Free Cash Flow | |||
| 191.14M | -142.71M | -496.89M | -1.29B | 392.89M | Operating Cash Flow |
| 333.84M | 58.82M | -361.11M | -1.16B | 561.67M | Investing Cash Flow |
| 105.54M | -17.71M | 3.03B | -111.88M | -173.40M | Financing Cash Flow |
| -391.30M | -477.94M | -2.47B | 1.58B | -252.43M |
Ingram Micro Holding Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $21.40B | 20.26 | 49.04% | 1.54% | -1.77% | -1.82% | |
68 Neutral | $4.08B | 13.38 | 6.45% | 2.71% | -12.21% | -51.31% | |
66 Neutral | $5.38B | 14.25 | 6.78% | ― | -15.66% | -54.03% | |
64 Neutral | $808.79M | 13.58 | 6.79% | ― | -15.92% | -25.15% | |
62 Neutral | $8.83B | 13.07 | 8.42% | 1.57% | 4.62% | 16.55% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% | |
57 Neutral | $4.20B | 15.90 | 7.30% | ― | -0.12% | -25.09% |
* Technology Sector Average
Performance Comparison
INGM
Ingram Micro Holding Corporation
17.89
-6.27
-25.95%
ARW
Arrow Electronics
103.71
-25.32
-19.62%
AVT
Avnet
47.19
-0.84
-1.75%
SCSC
ScanSource
34.47
-8.50
-19.78%
SNX
SYNNEX
104.62
-6.61
-5.94%
CDW
CDW
161.51
-88.49
-35.40%
Ingram Micro Holding Corporation Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -14.40% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
Despite challenges in certain areas such as India and advanced solutions, Ingram Micro demonstrated resilience with a return to top-line growth, strong performance in cloud solutions, and significant industry recognition. However, gross margin pressures and market challenges in India present ongoing concerns.Highlights
Return to Year-Over-Year Top-Line Growth
Ingram Micro achieved a year-over-year top-line growth of nearly 3.5% on an FX-neutral basis in Q4 2024, with strength in Asia Pacific and Latin America, both up over 7%.
Strong Performance in Cloud and Client Solutions
Cloud and client and endpoint solutions showed robust performance, growing year-over-year and quarter-over-quarter.
AI-Driven Digital Experience Platform, Xvantage
The Xvantage platform has been rolled out in 16 countries and has enabled real-time interaction and seamless provisioning, significantly reducing operational cycle times for clients.
Industry Recognition and Awards
Ingram Micro received over 100 industry awards in 2024, including AWS Global Partner of the Year and HPE's Global Distributor of the Year.
Sustainability Efforts Recognized
Ranked in the top 1% for sustainability by Ecovadis for the second year in a row.
Strong Free Cash Flow
Q4 2024 adjusted free cash flow was $337.2 million, contributing to a full-year total of $443.3 million.
Lowlights
Decline in Gross Profit Margin
Full-year 2024 gross profit margin was 7.18%, down 20 basis points from the previous year due to mix and competitive environment.
India Market Challenges
Competitive market conditions in India impacted sales and margins, with significant pricing pressure expected to continue into early 2025.
Weakness in Advanced Solutions
Advanced Solutions faced softness, particularly in networking, which was down double digits for the year.
Impact of Discrete Charges in India
Q4 2024 results included $20.3 million in charges related to fraud in India operations, impacting operating income.
Company Guidance
During the Ingram Micro Holding Corporation's fourth-quarter and fiscal year 2024 earnings call, the company provided guidance for the first quarter of 2025. They forecast net sales to be between $11.43 billion and $11.83 billion, reflecting a year-over-year growth of 2.6% at the midpoint. Gross profit is expected to range from $785 million to $835 million, with non-GAAP diluted EPS projected between $0.51 and $0.61 per share. The non-GAAP tax rate is anticipated to be approximately 30%. The company emphasized a focus on driving growth through advanced solutions and cloud products, despite challenging competitive conditions, particularly in India. They also highlighted ongoing investments in their digital platform, Xvantage, which is expected to enhance operational efficiencies and reduce costs over time.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.