INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
52.93 USD
-1.19 (-2.2%)
52.93 USD
0 (0%)
Taking everything into account, NSP scores 4 out of 10 in our fundamental rating. NSP was compared to 82 industry peers in the Professional Services industry. Both the profitability and the financial health of NSP get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year NSP has reported a negative cash flow from operations.
Each year in the past 5 years NSP has been profitable.
In the past 5 years NSP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.98%, NSP perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
With an excellent Return On Equity value of 35.71%, NSP belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.27%, NSP is in line with its industry, outperforming 46.99% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 12.76%.
The 3 year average ROIC (21.27%) for NSP is well above the current ROIC(5.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 35.71% | ||
| ROIC | 5.27% |
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 (0.60%) which is comparable to the rest of the industry.
NSP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.70%, NSP is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NSP has declined.
Looking at the Gross Margin, with a value of 14.64%, NSP is doing worse than 79.52% of the companies in the same industry.
In the last couple of years the Gross Margin of NSP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | 0.6% | ||
| GM | 14.64% |
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.
NSP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NSP has less shares outstanding
NSP has a better debt/assets ratio than last year.
2.2 Solvency
NSP has an Altman-Z score of 4.63. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a better Altman-Z score (4.63) than 79.52% of its industry peers.
A Debt/Equity ratio of 3.29 is on the high side and indicates that NSP has dependencies on debt financing.
NSP's Debt to Equity ratio of 3.29 is on the low side compared to the rest of the industry. NSP is outperformed by 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.63 |
ROIC/WACC0.63
WACC8.35%
2.3 Liquidity
NSP has a Current Ratio of 1.12. 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 (1.12) is worse than 66.27% of its industry peers.
A Quick Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
NSP has a worse Quick ratio (1.12) than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.49%.
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 2.40%.
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)2.4%
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 3.84% on average per year.
NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y-40.42%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y4.81%
Revenue Next 3Y4.8%
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
NSP is valuated rather expensively with a Price/Earnings ratio of 23.32.
NSP's Price/Earnings is on the same level as the industry average.
NSP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.58, which indicates a rather expensive current valuation of NSP.
NSP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NSP to the average of the S&P500 Index (22.73), we can say NSP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
NSP's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
5. Dividend
5.1 Amount
NSP has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 2.07, NSP pays a better dividend. On top of this NSP pays more dividend than 96.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
On average, the dividend of NSP grows each year by 14.57%, which is quite nice.
NSP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NSP decreased in the last 3 years.
Dividend Growth(5Y)14.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
225.00% of the earnings are spent on dividend by NSP. This is not a sustainable payout ratio.
The dividend of NSP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP225%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
52.93
-1.19 (-2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.78%
Inst Owner Change1.94%
Ins Owners5.22%
Ins Owner Change0.3%
Market Cap1.99B
Analysts50
Price Target61.2 (15.62%)
Short Float %6.65%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP225%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.35%
Min EPS beat(2)-39.57%
Max EPS beat(2)-23.12%
EPS beat(4)2
Avg EPS beat(4)32.7%
Min EPS beat(4)-39.57%
Max EPS beat(4)175.03%
EPS beat(8)6
Avg EPS beat(8)29.59%
EPS beat(12)9
Avg EPS beat(12)20.96%
EPS beat(16)12
Avg EPS beat(16)14.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-1.01%
Revenue beat(12)1
Avg Revenue beat(12)-1.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)-20.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.81%
EPS NY rev (1m)-15.02%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 17.58 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 17.8 | ||
| P/tB | 20.14 | ||
| EV/EBITDA | 20.79 |
EPS(TTM)2.27
EY4.29%
EPS(NY)3.01
Fwd EY5.69%
FCF(TTM)-2.47
FCFYN/A
OCF(TTM)-1.41
OCFYN/A
SpS177.73
BVpS2.97
TBVpS2.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 35.71% | ||
| ROCE | 7.11% | ||
| ROIC | 5.27% | ||
| ROICexc | 17.01% | ||
| ROICexgc | 18.16% | ||
| OM | 0.7% | ||
| PM (TTM) | 0.6% | ||
| GM | 14.64% | ||
| FCFM | N/A |
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-Score3
Asset Turnover3.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 90.91% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.63 |
F-Score3
WACC8.35%
ROIC/WACC0.63
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-40.42%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.4%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.3%
Revenue Next Year4.27%
Revenue Next 2Y4.81%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
EBIT growth 1Y-77.91%
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-142.27%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-120.76%
OCF growth 3Y25.96%
OCF growth 5Y20.44%