INSPERITY INC (NSP) Stock Fundamental Analysis
NYSE:NSP - New York Stock Exchange, Inc. - US45778Q1076 - Common Stock - Currency: USD
Overall NSP gets a fundamental rating of 5 out of 10. We evaluated NSP against 82 industry peers in the Professional Services industry. NSP has only an average score on both its financial health and profitability. While showing a medium growth rate, NSP is valued expensive at the moment.
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.
NSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.94%, NSP perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
NSP's Return On Equity of 52.94% is amongst the best of the industry. NSP outperforms 91.46% of its industry peers.
NSP has a better Return On Invested Capital (8.44%) than 60.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 12.28%.
The 3 year average ROIC (21.27%) for NSP is well above the current ROIC(8.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 52.94% | ||
| ROIC | 8.44% |
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 0.95% is in line compared to the rest of the industry. NSP outperforms 43.90% of its industry peers.
NSP's Profit Margin has declined in the last couple of years.
NSP's Operating Margin of 1.16% is on the low side compared to the rest of the industry. NSP is outperformed by 64.63% of its industry peers.
NSP's Operating Margin has declined in the last couple of years.
NSP has a worse Gross Margin (15.31%) than 80.49% of its industry peers.
NSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.16% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.31% |
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.
The number of shares outstanding for NSP has been reduced compared to 1 year ago.
NSP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.46 indicates that NSP is not in any danger for bankruptcy at the moment.
The Altman-Z score of NSP (4.46) is better than 76.83% of its industry peers.
NSP has a debt to FCF ratio of 52.71. This is a negative value and a sign of low solvency as NSP would need 52.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 52.71, NSP is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.10 is on the high side and indicates that NSP has dependencies on debt financing.
With a Debt to Equity ratio value of 3.10, 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 | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.92
WACC9.16%
2.3 Liquidity
NSP has a Current Ratio of 1.13. 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 1.13, NSP is doing worse than 64.63% of the companies in the same industry.
NSP has a Quick Ratio of 1.13. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NSP (1.13) is worse than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.95%.
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.
NSP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
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)-43.95%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-30.84%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.39%
3.2 Future
The Earnings Per Share is expected to grow by 6.59% 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 5.68% yearly.
EPS Next Y-29.89%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y5.01%
Revenue Next 3Y5.68%
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
Based on the Price/Earnings ratio of 19.82, the valuation of NSP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NSP is on the same level as its industry peers.
NSP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.25 indicates a correct valuation of NSP.
Based on the Price/Forward Earnings ratio, NSP is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
NSP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSP.
Based on the Price/Free Cash Flow ratio, NSP is valued a bit more expensive than 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 305.72 | ||
| EV/EBITDA | 16.13 |
4.3 Compensation for Growth
The decent profitability rating of NSP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.2%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NSP has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NSP has falen by -27.95%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NSP's Dividend Yield is rather good when compared to the industry average which is at 2.06. NSP pays more dividend than 96.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
On average, the dividend of NSP grows each year by 14.57%, which is quite nice.
NSP has been paying a dividend for at least 10 years, so it has 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 144.44% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NSP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP144.44%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
56.87
-0.73 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.93%
Inst Owner Change0%
Ins Owners5.22%
Ins Owner Change0.1%
Market Cap2.14B
Analysts50
Price Target77.18 (35.71%)
Short Float %6.79%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP144.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)75.95%
Min EPS beat(2)-23.12%
Max EPS beat(2)175.03%
EPS beat(4)3
Avg EPS beat(4)46.95%
Min EPS beat(4)-23.12%
Max EPS beat(4)175.03%
EPS beat(8)6
Avg EPS beat(8)28.39%
EPS beat(12)10
Avg EPS beat(12)25.57%
EPS beat(16)13
Avg EPS beat(16)18.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)0.14%
PT rev (1m)0%
PT rev (3m)-19.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 15.25 | ||
| P/S | 0.32 | ||
| P/FCF | 305.72 | ||
| P/OCF | 46.52 | ||
| P/B | 17.98 | ||
| P/tB | 20.19 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)2.87
EY5.05%
EPS(NY)3.73
Fwd EY6.56%
FCF(TTM)0.19
FCFY0.33%
OCF(TTM)1.22
OCFY2.15%
SpS176.51
BVpS3.16
TBVpS2.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 52.94% | ||
| ROCE | 11.37% | ||
| ROIC | 8.44% | ||
| ROICexc | 52.4% | ||
| ROICexgc | 59.5% | ||
| OM | 1.16% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.31% | ||
| FCFM | 0.11% |
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-Score5
Asset Turnover3.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 52.71 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 88.64% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.02% | ||
| Profit Quality | 11.11% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.46 |
F-Score5
WACC9.16%
ROIC/WACC0.92
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)-43.95%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-30.84%
EPS Next Y-29.89%
EPS Next 2Y2.2%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.39%
Revenue Next Year4.04%
Revenue Next 2Y5.01%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
EBIT growth 1Y-62.54%
EBIT growth 3Y-12.27%
EBIT growth 5Y-8.91%
EBIT Next Year28.66%
EBIT Next 3Y24.03%
EBIT Next 5YN/A
FCF growth 1Y-97.63%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-85.99%
OCF growth 3Y25.96%
OCF growth 5Y20.44%