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To own Ingram Micro Holding, you really have to believe in a low-margin distributor steadily improving its economics while leaning harder into higher-value cloud and software services. Recent results show modest revenue growth on very thin profit margins, alongside a rising but still small dividend and a share price that has lagged both the wider market and its own fair value estimates. Against that backdrop, the expanded Archera partnership feels incremental rather than transformational in the short term: it reinforces Ingram’s positioning with FinOps-focused cloud partners, but is unlikely on its own to meaningfully shift near-term earnings or solve issues like weak free cash flow coverage of the dividend, low return on equity and underwhelming recent share performance. It does, however, modestly strengthen one of the more interesting long-term catalysts around cloud-related services.
However, one key financial pressure point may matter more than this new cloud tie up. Ingram Micro Holding's shares have been on the rise but are still potentially undervalued by 39%. Find out what it's worth.Three Simply Wall St Community fair value views span roughly US$14.20 to US$34.88, showing how far opinions can stretch. Set that against concerns about thin margins and dividend cash coverage, and you can see why it pays to consider several angles on Ingram Micro’s future performance.
Explore 3 other fair value estimates on Ingram Micro Holding - why the stock might be worth 33% less than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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