INSPERITY INC (NSP) Stock Fundamental Analysis
NYSE:NSP - New York Stock Exchange, Inc. - US45778Q1076 - Common Stock - Currency: USD
NSP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. NSP has an average financial health and profitability rating. NSP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NSP was profitable.
NSP had a positive operating cash flow in the past year.
Each year in the past 5 years NSP has been profitable.
Each year in the past 5 years NSP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NSP (2.94%) is comparable to the rest of the industry.
NSP has a better Return On Equity (52.94%) than 92.68% of its industry peers.
NSP's Return On Invested Capital of 8.44% is in line compared to the rest of the industry. NSP outperforms 58.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 12.74%.
The last Return On Invested Capital (8.44%) for NSP is well below the 3 year average (21.27%), which needs to be investigated, but indicates that NSP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 52.94% | ||
| ROIC | 8.44% |
ROA(3y)6.8%
ROA(5y)7.23%
ROE(3y)165.84%
ROE(5y)N/A
ROIC(3y)21.27%
ROIC(5y)21.13%
1.3 Margins
NSP has a Profit Margin of 0.95%. This is comparable to the rest of the industry: NSP outperforms 43.90% of its industry peers.
NSP's Profit Margin has declined in the last couple of years.
NSP has a worse Operating Margin (1.16%) than 65.85% of its industry peers.
NSP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 15.31%, NSP is doing worse than 82.93% of the companies in the same industry.
NSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.16% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.31% |
OM growth 3Y-20.09%
OM growth 5Y-16.29%
PM growth 3Y-17.82%
PM growth 5Y-16.76%
GM growth 3Y-1.03%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
NSP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NSP has less shares outstanding
Compared to 5 years ago, NSP has less shares outstanding
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.42 indicates that NSP is not in any danger for bankruptcy at the moment.
NSP has a Altman-Z score of 4.42. This is in the better half of the industry: NSP outperforms 78.05% of its industry peers.
NSP has a debt to FCF ratio of 52.71. This is a negative value and a sign of low solvency as NSP would need 52.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 52.71, NSP is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
NSP has a Debt/Equity ratio of 3.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NSP (3.10) is worse than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Altman-Z | 4.42 |
ROIC/WACC0.99
WACC8.53%
2.3 Liquidity
NSP has a Current Ratio of 1.13. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NSP (1.13) is worse than 65.85% of its industry peers.
NSP has a Quick Ratio of 1.13. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NSP (1.13) is worse than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for NSP have decreased strongly by -57.49% in the last year.
The Earnings Per Share has been decreasing by -2.87% on average over the past years.
NSP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.47%.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-57.49%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-69.77%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.3%
3.2 Future
Based on estimates for the next years, NSP will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
Based on estimates for the next years, NSP will show a small growth in Revenue. The Revenue will grow by 5.68% on average per year.
EPS Next Y-29.89%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y5.01%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.56, which indicates a rather expensive current valuation of NSP.
Compared to the rest of the industry, the Price/Earnings ratio of NSP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.51, NSP is valued at the same level.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of NSP.
Based on the Price/Forward Earnings ratio, NSP is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.09, NSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSP.
Based on the Price/Free Cash Flow ratio, NSP is valued a bit more expensive than the industry average as 69.51% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 287.44 | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.2%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, NSP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.28, NSP pays a better dividend. On top of this NSP pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
On average, the dividend of NSP grows each year by 14.57%, which is quite nice.
NSP has been paying a dividend for at least 10 years, so it has a reliable track record.
NSP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NSP pays out 144.44% of its income as dividend. This is not a sustainable payout ratio.
NSP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP144.44%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
53.47
+1.23 (+2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.78%
Inst Owner Change-0.64%
Ins Owners5.22%
Ins Owner Change0.93%
Market Cap2.01B
Analysts50
Price Target61.2 (14.46%)
Short Float %7.35%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP144.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)75.95%
Min EPS beat(2)-23.12%
Max EPS beat(2)175.03%
EPS beat(4)3
Avg EPS beat(4)46.95%
Min EPS beat(4)-23.12%
Max EPS beat(4)175.03%
EPS beat(8)6
Avg EPS beat(8)28.39%
EPS beat(12)10
Avg EPS beat(12)25.57%
EPS beat(16)13
Avg EPS beat(16)18.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)0.14%
PT rev (1m)-20.7%
PT rev (3m)-20.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 14.34 | ||
| P/S | 0.3 | ||
| P/FCF | 287.44 | ||
| P/OCF | 43.74 | ||
| P/B | 16.91 | ||
| P/tB | 18.98 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)2.27
EY4.25%
EPS(NY)3.73
Fwd EY6.97%
FCF(TTM)0.19
FCFY0.35%
OCF(TTM)1.22
OCFY2.29%
SpS176.51
BVpS3.16
TBVpS2.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 52.94% | ||
| ROCE | 11.37% | ||
| ROIC | 8.44% | ||
| ROICexc | 52.4% | ||
| ROICexgc | 59.5% | ||
| OM | 1.16% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.31% | ||
| FCFM | 0.11% |
ROA(3y)6.8%
ROA(5y)7.23%
ROE(3y)165.84%
ROE(5y)N/A
ROIC(3y)21.27%
ROIC(5y)21.13%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.67%
ROCE(5y)28.48%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-20.09%
OM growth 5Y-16.29%
PM growth 3Y-17.82%
PM growth 5Y-16.76%
GM growth 3Y-1.03%
GM growth 5Y-1.21%
F-Score5
Asset Turnover3.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 88.64% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.02% | ||
| Profit Quality | 11.11% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.42 |
F-Score5
WACC8.53%
ROIC/WACC0.99
Cap/Depr(3y)84.91%
Cap/Depr(5y)130.99%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.93%
Profit Quality(3y)266.33%
Profit Quality(5y)232.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-57.49%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-69.77%
EPS Next Y-29.89%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue 1Y (TTM)1.47%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.3%
Revenue Next Year4.04%
Revenue Next 2Y5.01%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
EBIT growth 1Y-62.54%
EBIT growth 3Y-12.27%
EBIT growth 5Y-8.91%
EBIT Next Year16.54%
EBIT Next 3Y20.35%
EBIT Next 5YN/A
FCF growth 1Y-97.63%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-85.99%
OCF growth 3Y25.96%
OCF growth 5Y20.44%