INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
43.84 USD
+1.51 (+3.57%)
43.84 USD
0 (0%)
NSP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. NSP has only an average score on both its financial health and profitability. 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
With a Return On Assets value of 0.84%, NSP perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
The Return On Equity of NSP (19.54%) is better than 70.93% of its industry peers.
NSP has a Return On Invested Capital of 2.47%. This is in the lower half of the industry: NSP underperforms 60.47% 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 11.86%.
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.
In the last couple of years the Profit Margin of NSP has declined.
With a Operating Margin value of 0.31%, NSP is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NSP has declined.
NSP has a Gross Margin of 14.00%. This is amonst the worse of the industry: NSP underperforms 80.23% of its industry peers.
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.
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.
Compared to 1 year ago, NSP has an improved debt to assets ratio.
2.2 Solvency
NSP has an Altman-Z score of 4.49. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
NSP has a better Altman-Z score (4.49) than 83.72% of its industry peers.
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 has a Debt to FCF ratio (7.24) which 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's Debt to Equity ratio of 4.24 is on the low side compared to the rest of the industry. NSP is outperformed by 84.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.29
WACC8.39%
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 67.44% 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 67.44% 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.
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 3.19%.
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
The Earnings Per Share is expected to decrease by -0.20% on average over the next years.
The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y-67.63%
EPS Next 2Y-15.16%
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.
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
NSP is valuated quite expensively with a Price/Earnings ratio of 26.10.
The rest of the industry has a similar Price/Earnings ratio as NSP.
The average S&P500 Price/Earnings ratio is at 27.00. NSP is around the same levels.
The Price/Forward Earnings ratio is 17.06, which indicates a rather expensive current valuation of NSP.
NSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 62.79% of the companies in the same industry.
NSP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 17.06 |
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 | 32.41 | ||
| EV/EBITDA | 24.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.20%, NSP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, NSP pays a better dividend. On top of this NSP pays more dividend than 95.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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.
NSP has decreased its dividend 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.
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-15.16%
EPS Next 3Y-0.2%
43.84
+1.51 (+3.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0%
Ins Owners5.24%
Ins Owner Change0.17%
Market Cap1.65B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target45.9 (4.7%)
Short Float %10.47%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP529.41%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0%
PT rev (3m)-25%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-709.15%
EPS NY rev (1m)-14.5%
EPS NY rev (3m)-45.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 17.06 | ||
| P/S | 0.24 | ||
| P/FCF | 32.41 | ||
| P/OCF | 19.22 | ||
| P/B | 19 | ||
| P/tB | 22.33 | ||
| EV/EBITDA | 24.06 |
EPS(TTM)1.68
EY3.83%
EPS(NY)2.57
Fwd EY5.86%
FCF(TTM)1.35
FCFY3.09%
OCF(TTM)2.28
OCFY5.2%
SpS179.23
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 | 4.49 |
F-Score5
WACC8.39%
ROIC/WACC0.29
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-67.63%
EPS Next 2Y-15.16%
EPS Next 3Y-0.2%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.97%
Revenue Next Year3.92%
Revenue Next 2Y5.15%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
EBIT growth 1Y-86.39%
EBIT growth 3Y-12.27%
EBIT growth 5Y-8.91%
EBIT Next Year-14.25%
EBIT Next 3Y18.11%
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 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.