INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
49.34 USD
+0.35 (+0.71%)
49.34 USD
0 (0%)
NSP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
NSP had a negative operating cash flow in the past year.
In the past 5 years NSP has always 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 of 1.98%. This is comparable to the rest of the industry: NSP outperforms 46.34% of its industry peers.
NSP's Return On Equity of 35.71% is amongst the best of the industry. NSP outperforms 86.59% of its industry peers.
NSP has a Return On Invested Capital of 5.27%. This is comparable to the rest of the industry: NSP outperforms 45.12% of its industry peers.
NSP had an Average Return On Invested Capital over the past 3 years of 21.27%. This is significantly above the industry average of 13.20%.
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's Profit Margin of 0.60% is in line compared to the rest of the industry. NSP outperforms 41.46% of its industry peers.
NSP's Profit Margin has declined in the last couple of years.
NSP has a worse Operating Margin (0.70%) than 65.85% of its industry peers.
In the last couple of years the Operating Margin of NSP has declined.
NSP has a Gross Margin of 14.64%. This is amonst the worse of the industry: NSP underperforms 81.71% of its industry peers.
NSP's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, NSP has less shares outstanding
Compared to 1 year ago, NSP has an improved debt to assets ratio.
2.2 Solvency
NSP has an Altman-Z score of 4.59. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a Altman-Z score of 4.59. This is in the better half of the industry: NSP outperforms 78.05% of its industry peers.
NSP has a Debt/Equity ratio of 3.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.29, 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 | 3.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.59 |
ROIC/WACC0.63
WACC8.38%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, NSP is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
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 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for NSP have decreased strongly by -57.49% in the last year.
Measured over the past years, NSP shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.87% on average per year.
The Revenue has been growing slightly by 2.40% in the past year.
NSP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.81% yearly.
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
NSP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
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
With a Price/Earnings ratio of 21.74, NSP is valued on the expensive side.
NSP's Price/Earnings ratio is in line with the industry average.
NSP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
NSP is valuated correctly with a Price/Forward Earnings ratio of 16.38.
64.63% of the companies in the same industry are more expensive than NSP, based on the Price/Forward Earnings ratio.
NSP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.3 |
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 4.90%, which is a nice return.
Compared to an average industry Dividend Yield of 3.62, NSP pays a better dividend. On top of this NSP pays more dividend than 93.90% of the companies listed in the same industry.
NSP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
5.2 History
The dividend of NSP is nicely growing with an annual growth rate of 14.57%!
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.
NSP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP225%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
49.34
+0.35 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change0.01%
Ins Owners5.26%
Ins Owner Change-0.8%
Market Cap1.86B
Analysts50
Price Target61.2 (24.04%)
Short Float %7.28%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
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)0%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 16.38 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 16.59 | ||
| P/tB | 18.77 | ||
| EV/EBITDA | 19.3 |
EPS(TTM)2.27
EY4.6%
EPS(NY)3.01
Fwd EY6.1%
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 | 4.59 |
F-Score3
WACC8.38%
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%