NYSE:INGM
Ingram Micro Holding Corp
A leading global technology distributor providing essential hardware, software, and managed services to businesses worldwide.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Ingram Micro for its dominant market position and massive scale, evidenced by billions in accounts payable and receivable reflecting high transaction volumes. The company's ability to generate positive operating cash flow while navigating large debt obligations suggests a resilient business model capable of weathering economic cycles. Its diversified revenue streams across hardware, software, and services provide stability against the volatility inherent in single-product tech distributions.
Bear Case
The substantial retained earnings deficit of $1.34B and accumulated other comprehensive loss suggest underlying equity pressure that could limit future growth or dividend potential. Heavy reliance on trade finance creates complex accounting dynamics where non-operating losses can distort reported profitability independent of core operational performance. Significant long-term debt obligations combined with interest income far below operating expenses highlight a capital structure that may be sensitive to rising borrowing costs.
About Ingram Micro Holding Corp
Ingram Micro Holding Corp is a global technology distributor serving small business owners, mid-market companies, and large enterprises with hardware, software, and managed services. Operating primarily in the Americas, Europe, and Asia-Pacific, the company leverages its vast network to deliver IT solutions that drive digital transformation for customers ranging from startups to Fortune 500 firms.
Analysis
Management Discussion
Despite generating $264.2M in net profit on $47.98B of revenue, the company reported a negative net change in cash of $30.1M, driven by significant debt repayments of $483.1M and other financing outflows totaling $880.6M. Operating cash flow remained healthy at $333.8M, though non-cash adjustments related to trade finance activities impacted the bottom line by over $2 billion. The balance sheet shows a current ratio below one, indicating that current liabilities exceed current assets, which warrants monitoring of liquidity management strategies.
Industry Overview
The global technology distribution industry is characterized by high volume, low margin transactions supported by extensive logistics networks and vendor relationships. Success in this sector depends on the ability to offer comprehensive supply chain solutions and integrated services that go beyond simple product resale. Market consolidation continues as larger players seek scale efficiencies to compete with both traditional distributors and emerging digital platforms.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 |
|---|---|
| Revenue | $47.98B |
| Cost of Revenue | $44.54B |
| Gross Profit | $3.44B |
| Operating Expenses | $2.63B |
| Operating Income | $817.9M |
| G&A | $2.59B |
| Stock-Based Comp | $34.1M |
| D&A | $189.3M |
| Depreciation | $102.5M |
| Amortization | $86.9M |
| Other OpEx | $38.4M |
| Non-Operating Income | $-372.1M |
| Interest Income | $45.3M |
| Pre-Tax Income | $445.9M |
| Income Tax | $181.6M |
| Continuing Ops | $264.2M |
| Discontinued Ops | $0 |
| Net Income | $264.2M |
| Minority Interest | $0 |
| Net to Common | $264.2M |
| Metric | 2024 |
|---|---|
| Current Assets | $15.80B |
| Cash & Equivalents | $918.4M |
| Accounts Receivable | $9.45B |
| Inventory | $4.70B |
| Other Current Assets | $734.9M |
| Long-Term Assets | $2.98B |
| PP&E (Net) | $482.5M |
| Intangibles | $772.6M |
| Goodwill | $833.7M |
| Operating Leases | $412.7M |
| Other LT Assets | $477.1M |
| Total Assets | $18.78B |
| Current Liabilities | $11.31B |
| Accounts Payable | $10.01B |
| Current Leases | $93.9M |
| Other Current Liab | $184.9M |
| Long-Term Liabilities | $3.74B |
| Long-Term Debt | $3.17B |
| LT Operating Leases | $369.5M |
| Other LT Liab | $201.5M |
| Total Liabilities | $15.05B |
| Shareholders' Equity | $3.73B |
| Retained Earnings | $1.34B |
| AOCI | $-509.7M |
| Total L&E | $18.78B |
| Metric | 2024 |
|---|---|
| Net Income (CFO) | $264.2M |
| Non-Cash Adjustments | $-2.14B |
| Working Capital Changes | $2.21B |
| Cash from Operations | $333.8M |
| Capital Expenditures | $142.7M |
| Cash from Investing | $105.5M |
| Debt Repayments | $483.1M |
| Dividends Paid | $6.2M |
| Cash from Financing | $-391.3M |
| FX Effect | $-78.2M |
| Net Change in Cash | $-30.1M |
| Beginning Cash | $948.5M |
| Ending Cash | $918.4M |
Frequently Asked Questions
How does Ingram Micro Holding Corp make money?
The company's revenue is driven by the distribution of information technology products including servers, storage devices, networking equipment, and consumer electronics. Significant income is also generated from software licenses, cloud services, and value-added managed IT services that complement their hardware sales. Additionally, the business benefits from substantial trade finance activities supporting its global supply chain operations.
What are the main risks for INGM?
Fluctuations in global currency exchange rates can significantly impact reported revenue and cash flows given the company's international operations. High levels of accounts receivable relative to assets expose the firm to credit risk if major customers face economic downturns or payment delays. Intense competition from other distributors and direct-to-consumer tech giants could compress gross margins on core hardware products. Rapid technological obsolescence requires continuous capital expenditure to update inventory and maintain relevance in a fast-evolving market.
What is INGM's competitive advantage?
Ingram Micro possesses an unparalleled global footprint with over 1,500 locations, providing unmatched reach and logistical speed for customer orders. The company maintains deep, strategic partnerships with major technology vendors like Cisco and Dell, ensuring early access to new products and favorable terms. Its robust IT services division offers scalable solutions that help enterprise clients modernize their infrastructure without heavy capital expenditure.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.