INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
42.98 USD
+0.48 (+1.13%)
42.98 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NSP. NSP was compared to 86 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
In the past year NSP was profitable.
NSP had a negative operating cash flow in the past year.
Each year in the past 5 years NSP has 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 of 1.98%. This is comparable to the rest of the industry: NSP outperforms 48.84% of its industry peers.
NSP has a better Return On Equity (35.71%) than 87.21% of its industry peers.
NSP's Return On Invested Capital of 5.27% is in line compared to the rest of the industry. NSP outperforms 47.67% of its industry peers.
NSP had an Average Return On Invested Capital over the past 3 years of 21.27%. This is significantly above the industry average of 13.22%.
The last Return On Invested Capital (5.27%) 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 | 1.98% | ||
| ROE | 35.71% | ||
| ROIC | 5.27% |
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
With a Profit Margin value of 0.60%, NSP perfoms like the industry average, outperforming 45.35% of the companies in the same industry.
NSP's Profit Margin has declined in the last couple of years.
NSP's Operating Margin of 0.70% is on the low side compared to the rest of the industry. NSP is outperformed by 61.63% of its industry peers.
NSP's Operating Margin has declined in the last couple of years.
NSP has a worse Gross Margin (14.64%) than 80.23% of its industry peers.
NSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | 0.6% | ||
| GM | 14.64% |
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.
NSP has less shares outstanding than it did 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 4.50 indicates that NSP is not in any danger for bankruptcy at the moment.
NSP has a better Altman-Z score (4.50) than 82.56% of its industry peers.
NSP has a Debt/Equity ratio of 3.29. This is a high value indicating a heavy dependency on external financing.
NSP has a worse Debt to Equity ratio (3.29) than 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.5 |
ROIC/WACC0.64
WACC8.3%
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.
Looking at the Current ratio, with a value of 1.12, NSP is doing worse than 66.28% of the companies in the same industry.
NSP has a Quick 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 Quick ratio of NSP (1.12) is worse than 66.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.49%.
NSP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.87% yearly.
NSP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.40%.
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)-57.49%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-69.77%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.3%
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 18.93 indicates a rather expensive valuation of NSP.
NSP's Price/Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 62.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of NSP to the average of the S&P500 Index (26.19), we can say NSP is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.27, which indicates a correct valuation of NSP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSP indicates a somewhat cheap valuation: NSP is cheaper than 65.12% of the companies listed in the same industry.
NSP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
NSP's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.47 |
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
With a Yearly Dividend Yield of 5.18%, NSP is a good candidate for dividend investing.
NSP's Dividend Yield is rather good when compared to the industry average which is at 3.94. NSP pays more dividend than 95.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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 225.00% 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.
DP225%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
42.98
+0.48 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change-1.46%
Ins Owners5.26%
Ins Owner Change-0.87%
Market Cap1.62B
Revenue(TTM)6.70B
Net Income(TTM)40.00M
Analysts50
Price Target61.2 (42.39%)
Short Float %8.03%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend2.39
Dividend Growth(5Y)14.57%
DP225%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.35%
Min EPS beat(2)-39.57%
Max EPS beat(2)-23.12%
EPS beat(4)2
Avg EPS beat(4)32.7%
Min EPS beat(4)-39.57%
Max EPS beat(4)175.03%
EPS beat(8)6
Avg EPS beat(8)29.59%
EPS beat(12)9
Avg EPS beat(12)20.96%
EPS beat(16)12
Avg EPS beat(16)14.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-1.01%
Revenue beat(12)1
Avg Revenue beat(12)-1.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)-20.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 14.27 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 14.46 | ||
| P/tB | 16.35 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)2.27
EY5.28%
EPS(NY)3.01
Fwd EY7.01%
FCF(TTM)-2.47
FCFYN/A
OCF(TTM)-1.41
OCFYN/A
SpS177.73
BVpS2.97
TBVpS2.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number12.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 35.71% | ||
| ROCE | 7.11% | ||
| ROIC | 5.27% | ||
| ROICexc | 17.01% | ||
| ROICexgc | 18.16% | ||
| OM | 0.7% | ||
| PM (TTM) | 0.6% | ||
| GM | 14.64% | ||
| FCFM | N/A |
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-Score3
Asset Turnover3.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 90.91% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.5 |
F-Score3
WACC8.3%
ROIC/WACC0.64
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)-57.49%
EPS 3Y-3.4%
EPS 5Y-2.87%
EPS Q2Q%-69.77%
EPS Next Y-40.42%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.4%
Revenue growth 3Y9.79%
Revenue growth 5Y8.81%
Sales Q2Q%3.3%
Revenue Next Year4.27%
Revenue Next 2Y4.81%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
EBIT growth 1Y-77.91%
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-142.27%
FCF growth 3Y28.47%
FCF growth 5Y26.48%
OCF growth 1Y-120.76%
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.
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 18.93 and the Price/Book (PB) ratio is 14.46.
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.