INSPERITY INC (NSP) Stock Fundamental Analysis
NYSE:NSP - New York Stock Exchange, Inc. - US45778Q1076 - Common Stock
We assign a fundamental rating of 5 out of 10 to NSP. NSP was compared to 82 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year NSP was profitable.
NSP had a negative operating cash flow in the past year.
In the past 5 years NSP has always been profitable.
In the past 5 years NSP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.19%, NSP is doing good in the industry, outperforming 63.29% of the companies in the same industry.
NSP's Return On Equity of 95.65% is amongst the best of the industry. NSP outperforms 96.20% of its industry peers.
With an excellent Return On Invested Capital value of 16.44%, NSP belongs to the best of the industry, outperforming 82.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 13.48%.
The last Return On Invested Capital (16.44%) for NSP is well below the 3 year average (23.93%), which needs to be investigated, but indicates that NSP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 95.65% | ||
| ROIC | 16.44% |
ROA(3y)7.98%
ROA(5y)8.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.93%
ROIC(5y)23.92%
1.3 Margins
Looking at the Profit Margin, with a value of 1.83%, NSP is in line with its industry, outperforming 44.30% of the companies in the same industry.
NSP's Profit Margin has declined in the last couple of years.
NSP's Operating Margin of 2.36% is on the low side compared to the rest of the industry. NSP is outperformed by 63.29% of its industry peers.
In the last couple of years the Operating Margin of NSP has declined.
The Gross Margin of NSP (16.13%) is worse than 83.54% of its industry peers.
NSP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.36% | ||
| PM (TTM) | 1.83% | ||
| GM | 16.13% |
OM growth 3Y-9.47%
OM growth 5Y-6.34%
PM growth 3Y-6.25%
PM growth 5Y-5.4%
GM growth 3Y-5.3%
GM growth 5Y-2.14%
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
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 5.29 indicates that NSP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.29, NSP belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
A Debt/Equity ratio of 2.95 is on the high side and indicates that NSP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.95, NSP is not doing good in the industry: 88.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.29 |
ROIC/WACC1.82
WACC9.05%
2.3 Liquidity
NSP has a Current Ratio of 1.16. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
NSP has a worse Current ratio (1.16) than 60.76% of its industry peers.
NSP has a Quick Ratio of 1.16. This is a normal value and indicates that NSP is financially healthy and should not expect problems in meeting its short term obligations.
NSP has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for NSP have decreased strongly by -28.60% in the last year.
NSP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
Looking at the last year, NSP shows a small growth in Revenue. The Revenue has grown by 2.39% in the last year.
NSP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.12% yearly.
EPS 1Y (TTM)-28.6%
EPS 3Y5.96%
EPS 5Y8.1%
EPS Q2Q%-73.29%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y14.8%
Revenue growth 5Y11.12%
Sales Q2Q%0.65%
3.2 Future
Based on estimates for the next years, NSP will show a decrease in Earnings Per Share. The EPS will decrease by -6.55% on average per year.
NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y-35.34%
EPS Next 2Y-18.03%
EPS Next 3Y-6.55%
EPS Next 5YN/A
Revenue Next Year1.19%
Revenue Next 2Y3.23%
Revenue Next 3Y4.2%
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 decreasing.
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 17.99 indicates a rather expensive valuation of NSP.
Based on the Price/Earnings ratio, NSP is valued a bit cheaper than the industry average as 67.09% of the companies are valued more expensively.
NSP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
With a Price/Forward Earnings ratio of 20.72, NSP is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, NSP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NSP is valued a bit cheaper than 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
The decent profitability rating of NSP may justify a higher PE ratio.
NSP's earnings are expected to decrease with -6.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y-18.03%
EPS Next 3Y-6.55%
5. Dividend
5.1 Amount
NSP has a Yearly Dividend Yield of 3.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.82, NSP pays a better dividend. On top of this NSP pays more dividend than 97.47% of the companies listed in the same industry.
NSP's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
On average, the dividend of NSP grows each year by 22.54%, which is quite nice.
NSP has been paying a dividend for at least 10 years, so it has a reliable track record.
NSP has decreased its dividend recently.
Dividend Growth(5Y)22.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NSP pays out 73.79% 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.
DP73.79%
EPS Next 2Y-18.03%
EPS Next 3Y-6.55%
INSPERITY INC
NYSE:NSP (1/17/2025, 8:18:06 PM)
After market: 76.83 0 (0%)76.83
-1.93 (-2.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0.32%
Ins Owners5.35%
Ins Owner Change-6.69%
Market Cap2.87B
Analysts50
Price Target92.31 (20.15%)
Short Float %4.46%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend2.24
Dividend Growth(5Y)22.54%
DP73.79%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.95%
Min EPS beat(2)17.45%
Max EPS beat(2)18.45%
EPS beat(4)4
Avg EPS beat(4)14.2%
Min EPS beat(4)5.77%
Max EPS beat(4)18.45%
EPS beat(8)7
Avg EPS beat(8)14.12%
EPS beat(12)10
Avg EPS beat(12)9.15%
EPS beat(16)14
Avg EPS beat(16)14.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)4
Avg Revenue beat(12)-0.4%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)0%
PT rev (3m)-16.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 20.72 | ||
| P/S | 0.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 22.98 | ||
| P/tB | 25.64 | ||
| EV/EBITDA | 13.83 |
EPS(TTM)4.27
EY5.56%
EPS(NY)3.71
Fwd EY4.83%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)-1.09
OCFYN/A
SpS175.18
BVpS3.34
TBVpS3
PEG (NY)N/A
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 95.65% | ||
| ROCE | 22.04% | ||
| ROIC | 16.44% | ||
| ROICexc | 53.78% | ||
| ROICexgc | 57.26% | ||
| OM | 2.36% | ||
| PM (TTM) | 1.83% | ||
| GM | 16.13% | ||
| FCFM | N/A |
ROA(3y)7.98%
ROA(5y)8.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)23.93%
ROIC(5y)23.92%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)32.07%
ROCE(5y)32.07%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.47%
OM growth 5Y-6.34%
PM growth 3Y-6.25%
PM growth 5Y-5.4%
GM growth 3Y-5.3%
GM growth 5Y-2.14%
F-Score4
Asset Turnover3.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 97.28% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 5.29 |
F-Score4
WACC9.05%
ROIC/WACC1.82
Cap/Depr(3y)84.61%
Cap/Depr(5y)152.95%
Cap/Sales(3y)0.6%
Cap/Sales(5y)1.08%
Profit Quality(3y)150.93%
Profit Quality(5y)146.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.6%
EPS 3Y5.96%
EPS 5Y8.1%
EPS Q2Q%-73.29%
EPS Next Y-35.34%
EPS Next 2Y-18.03%
EPS Next 3Y-6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)2.39%
Revenue growth 3Y14.8%
Revenue growth 5Y11.12%
Sales Q2Q%0.65%
Revenue Next Year1.19%
Revenue Next 2Y3.23%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y-37.59%
EBIT growth 3Y3.93%
EBIT growth 5Y4.07%
EBIT Next Year13.24%
EBIT Next 3Y9.18%
EBIT Next 5YN/A
FCF growth 1Y-127.65%
FCF growth 3Y-13.91%
FCF growth 5Y1.2%
OCF growth 1Y-112.46%
OCF growth 3Y-16.94%
OCF growth 5Y1.47%