INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
35.45 USD
-0.09 (-0.25%)
35.45 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NSP. NSP was compared to 87 industry peers in the Professional Services industry. NSP has only an average score on both its financial health and profitability. NSP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NSP had positive earnings in the past year.
In the past year NSP had a positive cash flow from operations.
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
NSP has a Return On Assets (0.84%) which is comparable to the rest of the industry.
The Return On Equity of NSP (19.54%) is better than 70.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.47%, NSP is in line with its industry, outperforming 40.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NSP is significantly above the industry average of 12.15%.
The 3 year average ROIC (21.27%) for NSP is well above the current ROIC(2.47%). The reason for the recent decline needs to be investigated.
| 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
NSP has a Profit Margin of 0.25%. This is comparable to the rest of the industry: NSP outperforms 42.53% of its industry peers.
NSP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.31%, NSP is doing worse than 65.52% of the companies in the same industry.
In the last couple of years the Operating Margin of NSP has declined.
The Gross Margin of NSP (14.00%) is worse than 81.61% of its industry peers.
NSP's Gross Margin has been stable in the last couple of years.
| 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.
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
An Altman-Z score of 4.39 indicates that NSP is not in any danger for bankruptcy at the moment.
The Altman-Z score of NSP (4.39) is better than 82.76% of its industry peers.
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.
With a Debt to FCF ratio value of 7.24, NSP perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
A Debt/Equity ratio of 4.24 is on the high side and indicates that NSP has dependencies on debt financing.
With a Debt to Equity ratio value of 4.24, NSP is not doing good in the industry: 85.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.3
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
NSP has a worse Current ratio (1.12) than 67.82% 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 67.82% of the companies in the same industry.
| 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 -60.66% in the last year.
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.
The Revenue has been growing slightly by 3.19% in the past 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)-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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
The Revenue is expected to grow by 4.80% on average over the next years.
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 21.10 indicates a rather expensive valuation of NSP.
Compared to the rest of the industry, the Price/Earnings ratio of NSP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.15. NSP is around the same levels.
NSP is valuated reasonably with a Price/Forward Earnings ratio of 11.77.
NSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 75.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NSP to the average of the S&P500 Index (36.12), we can say NSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.18 | ||
| EV/EBITDA | 19.18 |
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
NSP has a Yearly Dividend Yield of 7.40%, which is a nice return.
The stock price of NSP dropped by -35.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NSP's Dividend Yield is rather good when compared to the industry average which is at 4.43. NSP pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
5.2 History
The dividend of NSP is nicely growing with an annual growth rate of 14.57%!
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 529.41% of its income as dividend. This is not a sustainable payout ratio.
NSP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP529.41%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
35.45
-0.09 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change0.47%
Ins Owners5.26%
Ins Owner Change0.17%
Market Cap1.34B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target45.9 (29.48%)
Short Float %7.85%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP529.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-114.22%
Min EPS beat(2)-188.88%
Max EPS beat(2)-39.57%
EPS beat(4)1
Avg EPS beat(4)-19.14%
Min EPS beat(4)-188.88%
Max EPS beat(4)175.03%
EPS beat(8)5
Avg EPS beat(8)-2.47%
EPS beat(12)8
Avg EPS beat(12)3.03%
EPS beat(16)11
Avg EPS beat(16)2.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-1.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.54%
PT rev (1m)-25%
PT rev (3m)-25%
EPS NQ rev (1m)-694.77%
EPS NQ rev (3m)-694.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 11.77 | ||
| P/S | 0.2 | ||
| P/FCF | 26.18 | ||
| P/OCF | 15.53 | ||
| P/B | 15.35 | ||
| P/tB | 18.05 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)1.68
EY4.74%
EPS(NY)3.01
Fwd EY8.49%
FCF(TTM)1.35
FCFY3.82%
OCF(TTM)2.28
OCFY6.44%
SpS179.37
BVpS2.31
TBVpS1.96
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 19.54% | ||
| ROCE | 3.33% | ||
| ROIC | 2.47% | ||
| ROICexc | 8.2% | ||
| ROICexgc | 8.8% | ||
| OM | 0.31% | ||
| PM (TTM) | 0.25% | ||
| GM | 14% | ||
| FCFM | 0.75% |
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-Score5
Asset Turnover3.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 79.55% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.31% | ||
| Profit Quality | 300% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.39 |
F-Score5
WACC8.16%
ROIC/WACC0.3
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)-60.66%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-151.28%
EPS Next Y-40.42%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.97%
Revenue Next Year4.27%
Revenue Next 2Y4.81%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
EBIT growth 1Y-86.39%
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-84.53%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-76.5%
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 5 / 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 21.1 and the Price/Book (PB) ratio is 15.35.
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.