Ingram Micro’s Unremarkable Platform Economics

I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on global IT distributor, Ingram Micro Holding Corporation (INGM). From the executive summary of the article is the following:

  • Ingram Micro operates in a massive, growing IT market but has failed to translate this into revenue or margin growth, despite strategic investments.
  • The company’s transition to a platform model is hampered by its capital-intensive physical logistics, limiting profitability and scale economies.
  • Current valuation assumes optimistic growth, but reverse DCF analysis shows significant downside risk if recent trends persist.
  • Given persistent thin margins, lack of differentiation, and unattractive returns, I recommend a ‘Sell’ rating on INGM stock.

The rest of the article is available here.

The Mirandolan

A labour of love from a quantitative investment analyst and economist, offering rigorous global equity research and essays on the economics of risk. This publication is reserved for matters of genuine import, published on an irregular schedule only when research warrants. Its readership comprises analysts, portfolio managers, and capital allocators from leading institutional investment firms across the world.

Scroll to Top