INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
38.61 USD
-0.83 (-2.1%)
38.87 USD
+0.26 (+0.67%)
We assign a fundamental rating of 4 out of 10 to NSP. NSP was compared to 86 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 valued expensive and it does not seem to be growing.
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.
NSP had positive earnings in each of the past 5 years.
Each year in the past 5 years NSP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NSP (0.84%) is comparable to the rest of the industry.
NSP has a better Return On Equity (19.54%) than 69.77% of its industry peers.
With a Return On Invested Capital value of 2.47%, NSP is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 12.03%.
The last Return On Invested Capital (2.47%) for NSP is well below the 3 year average (21.27%), which needs to be investigated, but indicates that NSP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 19.54% | ||
| ROIC | 2.47% |
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
Looking at the Profit Margin, with a value of 0.25%, NSP is in line with its industry, outperforming 43.02% of the companies in the same industry.
NSP's Profit Margin has declined in the last couple of years.
NSP has a Operating Margin of 0.31%. This is in the lower half of the industry: NSP underperforms 65.12% of its industry peers.
NSP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 14.00%, NSP is doing worse than 81.40% of the companies in the same industry.
NSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.31% | ||
| PM (TTM) | 0.25% | ||
| GM | 14% |
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.
Compared to 1 year ago, NSP has less shares outstanding
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 4.43. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a better Altman-Z score (4.43) than 81.40% of its industry peers.
NSP has a debt to FCF ratio of 7.24. This is a slightly negative value and a sign of low solvency as NSP would need 7.24 years to pay back of all of its debts.
The Debt to FCF ratio of NSP (7.24) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.24 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 4.24, NSP is doing worse than 84.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.43 |
ROIC/WACC0.3
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
NSP has a Current ratio of 1.12. This is in the lower half of the industry: NSP underperforms 67.44% of its industry peers.
A Quick Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, NSP is doing worse than 67.44% of the companies in the same industry.
| 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 -60.66%.
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 3.19% 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)-60.66%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-151.28%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.97%
3.2 Future
NSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.20% yearly.
NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.34% yearly.
EPS Next Y-62.15%
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y5.15%
Revenue Next 3Y6.34%
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 accelerating.
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 22.98.
NSP's Price/Earnings ratio is in line with the industry average.
NSP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
The Price/Forward Earnings ratio is 15.03, which indicates a correct valuation of NSP.
NSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 68.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. NSP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 15.03 |
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 | 28.54 | ||
| EV/EBITDA | 21.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.09%, NSP is a good candidate for dividend investing.
The stock price of NSP dropped by -23.36% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NSP's Dividend Yield is rather good when compared to the industry average which is at 1.52. NSP pays more dividend than 95.35% of the companies in the same industry.
NSP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
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.
NSP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
529.41% of the earnings are spent on dividend by NSP. This is not a sustainable payout ratio.
The Dividend Rate of NSP has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP529.41%
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
38.61
-0.83 (-2.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change0.48%
Ins Owners5.24%
Ins Owner Change0.17%
Market Cap1.46B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target45.9 (18.88%)
Short Float %8.53%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP529.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-114.22%
Min EPS beat(2)-188.88%
Max EPS beat(2)-39.57%
EPS beat(4)1
Avg EPS beat(4)-19.14%
Min EPS beat(4)-188.88%
Max EPS beat(4)175.03%
EPS beat(8)5
Avg EPS beat(8)-2.47%
EPS beat(12)8
Avg EPS beat(12)3.03%
EPS beat(16)11
Avg EPS beat(16)2.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-1.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.54%
PT rev (1m)-25%
PT rev (3m)-25%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-709.15%
EPS NY rev (1m)-36.46%
EPS NY rev (3m)-36.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 15.03 | ||
| P/S | 0.22 | ||
| P/FCF | 28.54 | ||
| P/OCF | 16.93 | ||
| P/B | 16.73 | ||
| P/tB | 19.67 | ||
| EV/EBITDA | 21.02 |
EPS(TTM)1.68
EY4.35%
EPS(NY)2.57
Fwd EY6.65%
FCF(TTM)1.35
FCFY3.5%
OCF(TTM)2.28
OCFY5.91%
SpS179.23
BVpS2.31
TBVpS1.96
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 19.54% | ||
| ROCE | 3.33% | ||
| ROIC | 2.47% | ||
| ROICexc | 8.2% | ||
| ROICexgc | 8.8% | ||
| OM | 0.31% | ||
| PM (TTM) | 0.25% | ||
| GM | 14% | ||
| FCFM | 0.75% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover3.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 79.55% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.31% | ||
| Profit Quality | 300% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.43 |
F-Score5
WACC8.32%
ROIC/WACC0.3
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)-60.66%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-151.28%
EPS Next Y-62.15%
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.97%
Revenue Next Year3.92%
Revenue Next 2Y5.15%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
EBIT growth 1Y-86.39%
EBIT growth 3Y-12.27%
EBIT growth 5Y-8.91%
EBIT Next Year-14.25%
EBIT Next 3Y18.11%
EBIT Next 5YN/A
FCF growth 1Y-84.53%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-76.5%
OCF growth 3Y25.96%
OCF growth 5Y20.44%
INSPERITY INC / NSP FAQ
What is the ChartMill fundamental rating of INSPERITY INC (NSP) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NSP.
What is the valuation status for NSP stock?
ChartMill assigns a valuation rating of 3 / 10 to INSPERITY INC (NSP). This can be considered as Overvalued.
What is the profitability of NSP stock?
INSPERITY INC (NSP) has a profitability rating of 5 / 10.
What are the PE and PB ratios of INSPERITY INC (NSP) stock?
The Price/Earnings (PE) ratio for INSPERITY INC (NSP) is 22.98 and the Price/Book (PB) ratio is 16.73.
What is the earnings growth outlook for INSPERITY INC?
The Earnings per Share (EPS) of INSPERITY INC (NSP) is expected to decline by -62.15% in the next year.