INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
40.74 USD
-3.61 (-8.14%)
41 USD
+0.26 (+0.64%)
Taking everything into account, NSP scores 4 out of 10 in our fundamental rating. 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.
- In the past 5 years NSP has always been profitable.
- Each year in the past 5 years NSP had a positive operating cash flow.
1.2 Ratios
- NSP has a Return On Assets (0.84%) which is in line with its industry peers.
- The Return On Equity of NSP (19.54%) is better than 71.26% of its industry peers.
- NSP has a Return On Invested Capital (2.47%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for NSP is significantly above the industry average of 11.85%.
- 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
- NSP has a Profit Margin of 0.25%. This is comparable to the rest of the industry: NSP outperforms 44.83% of its industry peers.
- In the last couple of years the Profit Margin of NSP has declined.
- NSP has a Operating Margin of 0.31%. This is in the lower half of the industry: NSP underperforms 64.37% of its industry peers.
- NSP's Operating Margin has declined in the last couple of years.
- The Gross Margin of NSP (14.00%) is worse than 78.16% 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.
- NSP has less shares outstanding than it did 1 year ago.
- NSP has less shares outstanding than it did 5 years ago.
- NSP has a better debt/assets ratio than last year.
2.2 Solvency
- NSP has an Altman-Z score of 4.46. This indicates that NSP is financially healthy and has little risk of 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.
- NSP has a debt to FCF ratio of 7.24. This is a slightly negative value and a sign of low solvency as NSP would need 7.24 years to pay back of all of its debts.
- NSP's Debt to FCF ratio of 7.24 is in line compared to the rest of the industry. NSP outperforms 51.72% of its industry peers.
- A Debt/Equity ratio of 4.24 is on the high side and indicates that NSP has dependencies on debt financing.
- NSP has a Debt to Equity ratio of 4.24. This is amonst the worse of the industry: NSP underperforms 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
WACC8.41%
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 Current ratio of 1.12. This is in the lower half of the industry: NSP underperforms 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.
- NSP's Quick ratio of 1.12 is on the low side compared to the rest of the industry. NSP is outperformed by 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 -60.66% in the last year.
- NSP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.87% yearly.
- 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
- Based on estimates for the next years, NSP will show a decrease in Earnings Per Share. The EPS will decrease by -0.20% on average per year.
- NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.34% yearly.
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
- The Price/Earnings ratio is 24.25, which indicates a rather expensive current valuation of NSP.
- NSP's Price/Earnings ratio is in line with the industry average.
- NSP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 16.54, NSP is valued correctly.
- Based on the Price/Forward Earnings ratio, NSP is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. NSP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
- NSP's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as NSP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.12 | ||
| 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
- With a Yearly Dividend Yield of 5.08%, NSP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.44, NSP pays a better dividend. On top of this NSP pays more dividend than 94.25% of the companies listed in the same industry.
- NSP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 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
- 529.41% of the earnings are spent on dividend by NSP. This is not a sustainable payout ratio.
- The Dividend Rate of NSP has been growing, while earnings will be declining. 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 2 / 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.