INSPERITY INC (NSP) Stock Fundamental Analysis
NYSE:NSP - New York Stock Exchange, Inc. - US45778Q1076 - Common Stock - Currency: USD
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. NSP has an average financial health and profitability rating. NSP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NSP had positive earnings in the past year.
NSP had a positive operating cash flow in the past year.
Each year in the past 5 years NSP has been profitable.
NSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSP has a Return On Assets (2.94%) which is comparable to the rest of the industry.
NSP's Return On Equity of 52.94% is amongst the best of the industry. NSP outperforms 91.46% of its industry peers.
With a decent Return On Invested Capital value of 8.44%, NSP is doing good in the industry, outperforming 60.98% 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 12.61%.
The 3 year average ROIC (21.27%) for NSP is well above the current ROIC(8.44%). The reason for the recent decline needs to be investigated.
| 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 (0.95%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NSP has declined.
The Operating Margin of NSP (1.16%) is worse than 64.63% of its industry peers.
In the last couple of years the Operating Margin of NSP has declined.
The Gross Margin of NSP (15.31%) is worse than 79.27% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NSP is creating value.
The number of shares outstanding for NSP has been reduced compared to 1 year ago.
The number of shares outstanding for NSP has been reduced compared to 5 years ago.
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.53 indicates that NSP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.53, NSP is doing good in the industry, outperforming 78.05% of the companies in the same industry.
The Debt to FCF ratio of NSP is 52.71, which is on the high side as it means it would take NSP, 52.71 years of fcf income to pay off all of its debts.
NSP's Debt to FCF ratio of 52.71 is on the low side compared to the rest of the industry. NSP is outperformed by 69.51% of its industry peers.
A Debt/Equity ratio of 3.10 is on the high side and indicates that NSP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.10, NSP is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.85
WACC9.93%
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.
NSP has a worse Current ratio (1.13) than 63.41% of its industry peers.
A Quick Ratio of 1.13 indicates that NSP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, NSP is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.95%.
The Earnings Per Share has been decreasing by -2.87% on average over the past years.
Looking at the last year, NSP shows a small growth in Revenue. The Revenue has grown by 1.90% in the last year.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-43.95%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-30.84%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.39%
3.2 Future
The Earnings Per Share is expected to grow by 6.59% on average over the next years.
NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.77, NSP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NSP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NSP to the average of the S&P500 Index (26.30), we can say NSP is valued inline with the index average.
NSP is valuated correctly with a Price/Forward Earnings ratio of 16.75.
NSP's Price/Forward Earnings ratio is in line with the industry average.
NSP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
NSP's Enterprise Value to EBITDA is on the same level as the industry average.
69.51% of the companies in the same industry are cheaper than NSP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 335.82 | ||
| EV/EBITDA | 18 |
4.3 Compensation for Growth
NSP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.2%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NSP has a Yearly Dividend Yield of 3.68%.
In the last 3 months the price of NSP has falen by -29.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NSP's Dividend Yield is rather good when compared to the industry average which is at 2.09. NSP pays more dividend than 95.12% of the companies in the same industry.
NSP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of NSP is nicely growing with an annual growth rate of 14.57%!
NSP has been paying a dividend for at least 10 years, so it has 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
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%
NYSE:NSP (6/6/2025, 12:40:00 PM)
62.47
-0.55 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.41%
Inst Owner Change2.17%
Ins Owners5.25%
Ins Owner Change0.1%
Market Cap2.35B
Analysts50
Price Target77.18 (23.55%)
Short Float %6.89%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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)-17.45%
PT rev (3m)-19.22%
EPS NQ rev (1m)-10.5%
EPS NQ rev (3m)-39.14%
EPS NY rev (1m)-28.67%
EPS NY rev (3m)-30.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 16.75 | ||
| P/S | 0.35 | ||
| P/FCF | 335.82 | ||
| P/OCF | 51.1 | ||
| P/B | 19.75 | ||
| P/tB | 22.18 | ||
| EV/EBITDA | 18 |
EPS(TTM)2.87
EY4.59%
EPS(NY)3.73
Fwd EY5.97%
FCF(TTM)0.19
FCFY0.3%
OCF(TTM)1.22
OCFY1.96%
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 | 4.53 |
F-Score5
WACC9.93%
ROIC/WACC0.85
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)-43.95%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-30.84%
EPS Next Y-29.89%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.39%
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 Year28.66%
EBIT Next 3Y24.03%
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%