Taking everything into account, NSP scores 4 out of 10 in our fundamental rating. NSP was compared to 87 industry peers in the Professional Services industry. NSP has an average financial health and profitability rating. NSP is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NSP was profitable.
In the past year NSP had a positive cash flow from operations.
Each year in the past 5 years NSP has been profitable.
In the past 5 years NSP always reported a positive cash flow from operatings.

1.2 Ratios

NSP's Return On Assets of 0.84% is in line compared to the rest of the industry. NSP outperforms 48.28% of its industry peers.
The Return On Equity of NSP (19.54%) is better than 71.26% of its industry peers.
NSP has a Return On Invested Capital of 2.47%. This is comparable to the rest of the industry: NSP outperforms 40.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NSP is significantly above the industry average of 12.02%.
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 44.83% of the companies in the same industry.
In the last couple of years the Profit Margin of NSP has declined.
With a Operating Margin value of 0.31%, NSP is not doing good in the industry: 64.37% of the companies in the same industry are doing better.
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 78.16% of the companies in the same industry.
In the last couple of years the Gross Margin of NSP has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, NSP has less shares outstanding
NSP has less shares outstanding than it did 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 4.46. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a Altman-Z score of 4.46. This is amongst the best in the industry. NSP outperforms 82.76% 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.
Looking at the Debt to FCF ratio, with a value of 7.24, NSP is in line with its industry, outperforming 51.72% of the companies in the same industry.
NSP has a Debt/Equity ratio of 4.24. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.24, NSP is not doing good in the industry: 82.76% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	4.24
Debt/FCF	7.24
Altman-Z	4.46

ROIC/WACC0.29

WACC8.44%

2.3 Liquidity

A Current Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
The Current ratio of NSP (1.12) is worse than 65.52% 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 65.52% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.12
Quick Ratio	1.12

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for NSP have decreased strongly by -60.66% in the last year.
NSP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.87% yearly.
NSP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
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.
Based on estimates for the next years, NSP will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.

EPS Next Y-67.63%

EPS Next 2Y-16.95%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.43 indicates a quite expensive valuation of NSP.
NSP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NSP to the average of the S&P500 Index (28.30), we can say NSP is valued inline with the index average.
NSP is valuated rather expensively with a Price/Forward Earnings ratio of 17.35.
NSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. NSP is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	25.43
Fwd PE	17.35

4.2 Price Multiples

NSP's Enterprise Value to EBITDA is on the same level as the industry average.
NSP's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	31.59
EV/EBITDA	22.33

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-16.95%

EPS Next 3Y-0.2%

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5. Dividend

5.1 Amount

NSP has a Yearly Dividend Yield of 5.87%, which is a nice return.
Compared to an average industry Dividend Yield of 1.46, NSP pays a better dividend. On top of this NSP pays more dividend than 94.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, NSP pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	5.87%

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

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-16.95%

EPS Next 3Y-0.2%

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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.

Can you provide the valuation status for INSPERITY INC?

ChartMill assigns a valuation rating of 2 / 10 to INSPERITY INC (NSP). This can be considered as Overvalued.

Can you provide the profitability details for INSPERITY INC?

INSPERITY INC (NSP) has a profitability rating of 5 / 10.

Can you provide the financial health for NSP stock?

The financial health rating of INSPERITY INC (NSP) is 5 / 10.

Can you provide the expected EPS growth for NSP stock?

The Earnings per Share (EPS) of INSPERITY INC (NSP) is expected to decline by -67.63% in the next year.