INSPERITY INC (NSP) Stock Fundamental Analysis
NYSE:NSP - New York Stock Exchange, Inc. - US45778Q1076 - Common Stock - Currency: USD
Taking everything into account, NSP scores 5 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 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.
In the past year NSP had a positive cash flow from operations.
NSP had positive earnings in each of the past 5 years.
NSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSP has a Return On Assets of 2.94%. This is comparable to the rest of the industry: NSP outperforms 52.44% of its industry peers.
NSP has a better Return On Equity (52.94%) than 91.46% of its industry peers.
NSP has a better Return On Invested Capital (8.44%) than 60.98% 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 12.28%.
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
The Profit Margin of NSP (0.95%) 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 1.16%. This is in the lower half of the industry: NSP underperforms 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 80.49% 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
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
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.45 indicates that NSP is not in any danger for bankruptcy at the moment.
NSP has a better Altman-Z score (4.45) than 76.83% of its industry peers.
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 has a Debt to FCF ratio of 52.71. This is in the lower half of the industry: NSP underperforms 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.
With a Debt to Equity ratio value of 3.10, NSP is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Altman-Z | 4.45 |
ROIC/WACC0.97
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.13 indicates that NSP should not have too much problems paying its short term obligations.
The Current ratio of NSP (1.13) is worse than 64.63% 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.
NSP has a Quick ratio of 1.13. This is in the lower half of the industry: NSP underperforms 64.63% of its industry peers.
| 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%.
NSP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.87% yearly.
The Revenue has been growing slightly by 1.90% in the past year.
Measured over the past years, NSP shows a quite strong growth in Revenue. The Revenue has been growing by 8.81% on average per year.
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
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
A Price/Earnings ratio of 19.74 indicates a rather expensive valuation of NSP.
The rest of the industry has a similar Price/Earnings ratio as NSP.
Compared to an average S&P500 Price/Earnings ratio of 27.54, NSP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.19, NSP is valued correctly.
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.
When comparing the Price/Forward Earnings ratio of NSP to the average of the S&P500 Index (36.44), we can say NSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 15.19 |
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 indicates a slightly more expensive valuation: NSP is more expensive than 69.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 304.48 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The decent profitability rating of NSP 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 4.16%, which is a nice return.
In the last 3 months the price of NSP has falen by -28.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.11, NSP pays a better dividend. On top of this NSP pays more dividend than 96.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
144.44% 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.
DP144.44%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
56.64
-0.99 (-1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.93%
Inst Owner Change0.5%
Ins Owners5.22%
Ins Owner Change0.1%
Market Cap2.13B
Analysts50
Price Target77.18 (36.26%)
Short Float %6.79%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)0%
PT rev (3m)-19.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 15.19 | ||
| P/S | 0.32 | ||
| P/FCF | 304.48 | ||
| P/OCF | 46.33 | ||
| P/B | 17.91 | ||
| P/tB | 20.11 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)2.87
EY5.07%
EPS(NY)3.73
Fwd EY6.58%
FCF(TTM)0.19
FCFY0.33%
OCF(TTM)1.22
OCFY2.16%
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 | 4.45 |
F-Score5
WACC8.69%
ROIC/WACC0.97
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%