INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
44.12 USD
+1.14 (+2.65%)
44 USD
-0.12 (-0.27%)
Overall NSP gets a fundamental rating of 4 out of 10. We evaluated NSP against 87 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.
In the past year NSP has reported a negative 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 has a Return On Assets (1.98%) which is in line with its industry peers.
The Return On Equity of NSP (35.71%) is better than 87.36% of its industry peers.
The Return On Invested Capital of NSP (5.27%) is comparable to the rest of the industry.
NSP had an Average Return On Invested Capital over the past 3 years of 21.27%. This is significantly above the industry average of 13.22%.
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
Looking at the Profit Margin, with a value of 0.60%, NSP is in line with its industry, outperforming 45.98% of the companies in the same industry.
In the last couple of years the Profit Margin of NSP has declined.
Looking at the Operating Margin, with a value of 0.70%, NSP is doing worse than 60.92% of the companies in the same industry.
NSP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 14.64%, NSP is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
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
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.
The number of shares outstanding for NSP has been reduced compared to 5 years ago.
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
NSP has an Altman-Z score of 4.52. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a Altman-Z score of 4.52. This is amongst the best in the industry. NSP outperforms 82.76% of its industry peers.
A Debt/Equity ratio of 3.29 is on the high side and indicates that NSP has dependencies on debt financing.
NSP has a Debt to Equity ratio of 3.29. This is amonst the worse of the industry: NSP underperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.52 |
ROIC/WACC0.63
WACC8.33%
2.3 Liquidity
NSP has a Current Ratio of 1.12. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, NSP is doing worse than 65.52% of the companies in the same industry.
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 65.52% 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.
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 2.40% in the last 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
The Earnings Per Share is expected to grow by 3.84% on average over the next years.
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
A Price/Earnings ratio of 19.44 indicates a rather expensive valuation of NSP.
60.92% of the companies in the same industry are more expensive than NSP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.10. NSP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.65, NSP is valued correctly.
Based on the Price/Forward Earnings ratio, NSP is valued a bit cheaper than 65.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NSP to the average of the S&P500 Index (22.52), we can say NSP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
NSP's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.14 |
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
With a Yearly Dividend Yield of 5.58%, NSP is a good candidate for dividend investing.
NSP's Dividend Yield is rather good when compared to the industry average which is at 4.15. NSP pays more dividend than 93.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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
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%
44.12
+1.14 (+2.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change-1.46%
Ins Owners5.26%
Ins Owner Change-0.87%
Market Cap1.66B
Revenue(TTM)6.70B
Net Income(TTM)40.00M
Analysts50
Price Target61.2 (38.71%)
Short Float %8.03%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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 | 19.44 | ||
| Fwd PE | 14.65 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 14.84 | ||
| P/tB | 16.79 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)2.27
EY5.15%
EPS(NY)3.01
Fwd EY6.83%
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
Graham Number12.32
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%
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-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 | 4.52 |
F-Score3
WACC8.33%
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%
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 19.44 and the Price/Book (PB) ratio is 14.84.
What is the earnings growth outlook for INSPERITY INC?
The Earnings per Share (EPS) of INSPERITY INC (NSP) is expected to decline by -40.42% in the next year.