INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
40.86 USD
+0.12 (+0.29%)
40.86 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NSP. NSP was compared to 87 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
- In the past year NSP was profitable.
- In the past year NSP had a positive cash flow from operations.
- 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
- 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.
- NSP has a better Return On Equity (19.54%) than 71.26% of its industry peers.
- NSP's Return On Invested Capital of 2.47% is in line compared 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 11.83%.
- 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
- The Profit Margin of NSP (0.25%) is comparable to the rest of the industry.
- NSP's Profit Margin has declined in the last couple of years.
- The Operating Margin of NSP (0.31%) is worse than 64.37% 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 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%
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.
- The number of shares outstanding for NSP has been reduced compared to 1 year ago.
- The number of shares outstanding for NSP has been reduced compared to 5 years ago.
- NSP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.46 indicates that NSP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.46, NSP belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- The Debt to FCF ratio of NSP is 7.24, which is on the high side as it means it would take NSP, 7.24 years of fcf income to pay off 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.
- NSP has a worse Debt to Equity ratio (4.24) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.29
WACC8.42%
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.
- 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.
- The Quick ratio of NSP (1.12) is worse than 65.52% of its industry peers.
| 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.
- The Revenue has been growing slightly by 3.19% 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)-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.
- The Revenue is expected to grow by 6.34% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 24.32 indicates a rather expensive valuation of NSP.
- NSP's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of NSP to the average of the S&P500 Index (28.39), we can say NSP is valued inline with the index average.
- NSP is valuated correctly with a Price/Forward Earnings ratio of 16.59.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NSP indicates a somewhat cheap valuation: NSP is cheaper than 64.37% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, NSP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 16.59 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 22.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.95%
EPS Next 3Y-0.2%
5. Dividend
5.1 Amount
- NSP has a Yearly Dividend Yield of 5.08%, which is a nice return.
- NSP's Dividend Yield is rather good when compared to the industry average which is at 1.45. NSP pays more dividend than 94.25% of the companies 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 | 5.08% |
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
- NSP pays out 529.41% of its income as dividend. This is not a sustainable payout ratio.
- NSP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP529.41%
EPS Next 2Y-16.95%
EPS Next 3Y-0.2%
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 3 / 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.