Ingram Micro’s Flat Sales and Modest EPS Growth Draw Caution

StockStory took a cautious view of Ingram Micro, pointing to limited long-term sales growth, modest earnings gains and break-even free cash flow. The publisher noted that shares had risen 20.8% over six months, compared with a 21.4% return for the S&P 500.

As of 17:12 UTC on Sept. 28, Ingram Micro traded at $26.52, down 1.7% since the previous close. The article said the company had $55.98 billion in trailing 12-month sales, close to its revenue five years earlier. StockStory viewed that as a sign of weak demand growth.

The publisher also said full-year earnings per share grew at a 3.4% annualized rate over the past four years, slower than the broader business services sector. It said the company broke even on free cash flow over the past five years, limiting its opportunities to return capital to shareholders.

Ingram Micro traded at 7.5 times forward earnings, according to the article. StockStory called that valuation optically cheap but said the company’s fundamentals left potential downside. The publisher said it favored an unnamed industrials business benefiting from an upgrade cycle.