INGM

Ingram Micro is one of the world's largest IT distributors, moving $52.6B of hardware, software, cloud and services across four geographic segments. FY2025 was a strong operational year: revenue grew 9.5% as global IT spending recovered, net income rose 24.1% to $328M, and operating income increased 7.2% to $877M. Most striking, operating cash flow jumped 174.4% to $916M and cash more than doubled to $1.86B, while long-term debt fell 13.2% — a meaningful balance-sheet improvement for a working-capital-heavy distributor that recently returned to public markets under Platinum Equity ownership.

The most encouraging structural trend is mix. Management notes that Advanced Solutions and Cloud now collectively make up more than one-third of net sales but more than half of gross profit, and the accelerating shift to cloud/XaaS and the Xvantage platform can lift the company's blended margin over time. That is the key to escaping the distribution model's economics, which are otherwise brutally thin — gross margin is just 6.7%, operating margin 1.7% and net margin 0.6%. With those margins, the 0.1x sales multiple is meaningless and the 20.4x P/E is the right lens; that multiple is reasonable but not cheap for the growth on offer.