INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
38.57 USD
+0.13 (+0.34%)
38.57 USD
0 (0%)
Overall NSP gets a fundamental rating of 4 out of 10. We evaluated NSP against 86 industry peers in the Professional Services industry. NSP has only an average score on both its financial health and profitability. NSP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NSP was profitable.
NSP had a positive operating cash flow in the past year.
NSP had positive earnings in each of the past 5 years.
In the past 5 years NSP always reported a positive cash flow from operatings.
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.
NSP has a better Return On Equity (19.54%) than 69.77% 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.
NSP had an Average Return On Invested Capital over the past 3 years of 21.27%. This is significantly above the industry average of 12.04%.
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
With a Profit Margin value of 0.25%, NSP perfoms like the industry average, outperforming 43.02% of the companies in the same industry.
In the last couple of years the Profit Margin of NSP has declined.
Looking at the Operating Margin, with a value of 0.31%, NSP is doing worse than 65.12% of the companies in the same industry.
NSP's Operating Margin has declined in the last couple of years.
NSP has a Gross Margin of 14.00%. This is amonst the worse of the industry: NSP underperforms 81.40% 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
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.
Compared to 5 years ago, NSP has less shares outstanding
The debt/assets ratio for NSP has been reduced compared to a year ago.
2.2 Solvency
NSP has an Altman-Z score of 4.43. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.43, NSP belongs to the top of the industry, outperforming 82.56% 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.
Looking at the Debt to FCF ratio, with a value of 7.24, NSP is in line with its industry, outperforming 51.16% 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: 84.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.43 |
ROIC/WACC0.3
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.
NSP's Current ratio of 1.12 is on the low side compared to the rest of the industry. NSP is outperformed by 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
NSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.66%.
The Earnings Per Share has been decreasing by -2.87% on average over the past years.
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
NSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.20% yearly.
Based on estimates for the next years, NSP will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
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.
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
With a Price/Earnings ratio of 22.96, NSP is valued on the expensive side.
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 26.92. NSP is around the same levels.
Based on the Price/Forward Earnings ratio of 15.01, the valuation of NSP can be described as correct.
NSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSP is cheaper than 67.44% of the companies in the same industry.
NSP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSP is on the same level as its industry peers.
NSP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.51 | ||
| EV/EBITDA | 21 |
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 6.24%, NSP is a good candidate for dividend investing.
In the last 3 months the price of NSP has falen by -21.99%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.58, NSP pays a better dividend. On top of this NSP pays more dividend than 94.19% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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.
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-15.16%
EPS Next 3Y-0.2%
38.57
+0.13 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change0.48%
Ins Owners5.24%
Ins Owner Change0.17%
Market Cap1.45B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target45.9 (19%)
Short Float %8.53%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
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)0%
PT rev (3m)-25%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-709.15%
EPS NY rev (1m)-45.67%
EPS NY rev (3m)-45.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 15.01 | ||
| P/S | 0.22 | ||
| P/FCF | 28.51 | ||
| P/OCF | 16.91 | ||
| P/B | 16.71 | ||
| P/tB | 19.65 | ||
| EV/EBITDA | 21 |
EPS(TTM)1.68
EY4.36%
EPS(NY)2.57
Fwd EY6.66%
FCF(TTM)1.35
FCFY3.51%
OCF(TTM)2.28
OCFY5.91%
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 | 4.43 |
F-Score5
WACC8.3%
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-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.
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 22.96 and the Price/Book (PB) ratio is 16.71.
What is the earnings growth outlook for INSPERITY INC?
The Earnings per Share (EPS) of INSPERITY INC (NSP) is expected to decline by -67.63% in the next year.