INGM

We rate Ingram Micro Holding Corp (INGM) as a Reduce with a composite score of 48.2/100 at a current price of $20.24. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in value (68th percentile) and stability (53th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (37th percentile) and momentum (43th percentile) tempers our overall conviction. We assign a No Moat rating (31/100), Medium uncertainty, and Poor capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Ingram Micro Holding Corp holds a lower-quartile position (#50 of 50) within the Wholesale Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.2/100 places it at rank #2307 in our full 7,333-stock universe. At $4.9B in market capitalization, Ingram Micro Holding Corp is a mid-cap player in the Wholesale Trade space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 11%, though momentum at the 43th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 7% (-15.6pp vs sector) narrow to operating margins of 2% (-1.7pp vs sector) and net margins of 0.6%, yielding a gross-to-net conversion rate of 8%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $20.24, Ingram Micro Holding Corp is trading near fair value based on current fundamentals. Our value factor score of 68/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 18.0x (roughly in line with the sector median of 19.1x), EV/EBITDA of 10.5x (at a premium), P/B of 1.2x, P/S of 0.1x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Medium uncertainty rating to Ingram Micro Holding Corp. The stock presents a balanced risk profile: elevated market sensitivity (beta of 1.36) and the combination of leverage (93% D/E) and thin margins (0.6% net) amplifies downside risk. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.36); the combination of leverage (93% D/E) and thin margins (0.6% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 53th percentile and quality factor at the 46th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our medium uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate Ingram Micro Holding Corp's capital allocation as Poor. Key concerns include weak asset returns (ROA 1.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Ingram Micro Holding Corp significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, Ingram Micro Holding Corp receives a Reduce rating with a composite score of 48.2/100 (rank #2307 of 7,333). Our quantitative framework assigns a No Moat (31/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 49/100.

Our analysis does not support a constructive view on Ingram Micro Holding Corp at this time. The combination of limited competitive advantages, medium uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.