INSPERITY INC (NSP)
US45778Q1076 - Common Stock
Overall NSP gets a fundamental rating of 5 out of 10. We evaluated NSP against 82 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.
In the past 5 years NSP has always been profitable.
Each year in the past 5 years NSP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.33%, NSP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
With an excellent Return On Equity value of 111.26%, NSP belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
NSP has a better Return On Invested Capital (21.30%) than 87.65% 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 11.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 111.26% | ||
| ROIC | 21.3% |
ROA(3y)7.98%
ROA(5y)8.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.93%
ROIC(5y)23.92%
1.3 Margins
The Profit Margin of NSP (2.39%) is comparable to the rest of the industry.
NSP's Profit Margin has declined in the last couple of years.
NSP has a Operating Margin of 3.15%. This is in the lower half of the industry: NSP underperforms 62.96% of its industry peers.
NSP's Operating Margin has declined in the last couple of years.
The Gross Margin of NSP (16.10%) is worse than 82.72% of its industry peers.
In the last couple of years the Gross Margin of NSP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.15% | ||
| PM (TTM) | 2.39% | ||
| GM | 16.1% |
OM growth 3Y-9.47%
OM growth 5Y-6.34%
PM growth 3Y-6.25%
PM growth 5Y-5.4%
GM growth 3Y-5.3%
GM growth 5Y-2.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NSP is creating value.
NSP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NSP has been reduced compared to 5 years ago.
Compared to 1 year ago, NSP has an improved debt to assets ratio.
2.2 Solvency
NSP has an Altman-Z score of 5.20. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.20, NSP belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
The Debt to FCF ratio of NSP is 2.43, which is a good value as it means it would take NSP, 2.43 years of fcf income to pay off all of its debts.
NSP has a better Debt to FCF ratio (2.43) than 67.90% of its industry peers.
A Debt/Equity ratio of 2.64 is on the high side and indicates that NSP has dependencies on debt financing.
NSP has a Debt to Equity ratio of 2.64. This is amonst the worse of the industry: NSP underperforms 90.12% of its industry peers.
Although NSP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.2 |
ROIC/WACC2.45
WACC8.69%
2.3 Liquidity
NSP has a Current Ratio of 1.15. 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 Current ratio of 1.15. This is in the lower half of the industry: NSP underperforms 62.96% of its industry peers.
NSP has a Quick Ratio of 1.15. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
NSP's Quick ratio of 1.15 is on the low side compared to the rest of the industry. NSP is outperformed by 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.34%.
Measured over the past years, NSP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
Looking at the last year, NSP shows a small growth in Revenue. The Revenue has grown by 6.32% in the last year.
Measured over the past years, NSP shows a quite strong growth in Revenue. The Revenue has been growing by 11.12% on average per year.
EPS 1Y (TTM)-18.34%
EPS 3Y5.96%
EPS 5Y8.1%
EPS growth Q2Q-14.98%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y14.8%
Revenue growth 5Y11.12%
Revenue growth Q2Q1.83%
3.2 Future
NSP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.52% yearly.
The Revenue is expected to grow by 8.68% on average over the next years. This is quite good.
EPS Next Y-35.64%
EPS Next 2Y-14.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.78%
Revenue Next 2Y8.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
NSP is valuated rather expensively with a Price/Earnings ratio of 20.43.
NSP's Price/Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 61.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.91, NSP is valued a bit cheaper.
The Price/Forward Earnings ratio is 25.93, which means the current valuation is very expensive for NSP.
Based on the Price/Forward Earnings ratio, NSP is valued a bit more expensive than the industry average as 64.20% of the companies are valued more cheaply.
NSP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 25.93 |
4.2 Price Multiples
NSP's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.95 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
NSP's earnings are expected to decrease with -14.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.52
EPS Next 2Y-14.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, NSP has a reasonable but not impressive dividend return.
NSP's Dividend Yield is rather good when compared to the industry average which is at 2.01. NSP pays more dividend than 90.12% of the companies in the same industry.
NSP's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
On average, the dividend of NSP grows each year by 22.54%, 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 recently.
Dividend Growth(5Y)22.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NSP pays out 54.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
NSP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP54.78%
EPS Next 2Y-14.52%
EPS Next 3YN/A
INSPERITY INC
NYSE:NSP (5/15/2024, 5:40:00 PM)
After market: 104.6 0 (0%)104.6
+1.86 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 25.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 111.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.15% | ||
| PM (TTM) | 2.39% | ||
| GM | 16.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.34%
EPS 3Y5.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y-35.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.32%
Revenue growth 3Y14.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y