INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
33.67 USD
-0.55 (-1.61%)
33.67 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. NSP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NSP was profitable.
NSP had a positive operating cash flow in the past year.
Each year in the past 5 years NSP has been profitable.
NSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NSP (0.84%) is comparable to the rest of the industry.
NSP has a Return On Equity of 19.54%. This is in the better half of the industry: NSP outperforms 69.77% of its industry peers.
The Return On Invested Capital of NSP (2.47%) is comparable to the rest of the industry.
NSP had an Average Return On Invested Capital over the past 3 years of 21.27%. This is in line with the industry average of 22.51%.
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 (0.25%) which is in line with its industry peers.
NSP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.31%, NSP is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
NSP's Operating Margin has declined in the last couple of years.
NSP's Gross Margin of 14.00% is on the low side compared to the rest of the industry. NSP is outperformed by 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NSP is creating value.
Compared to 1 year ago, NSP has less shares outstanding
Compared to 5 years ago, NSP has less shares outstanding
Compared to 1 year ago, NSP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.38 indicates that NSP is not in any danger for bankruptcy at the moment.
NSP has a better Altman-Z score (4.38) than 80.23% 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.
NSP has a Debt to FCF ratio of 7.24. This is comparable to the rest of the industry: NSP outperforms 46.51% 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.
With a Debt to Equity ratio value of 4.24, NSP is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.3
WACC8.24%
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 65.12% 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 has a worse Quick ratio (1.12) than 65.12% 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.
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
The Earnings Per Share is expected to grow by 3.84% on average over the next years.
NSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 20.04, which indicates a rather expensive current valuation of NSP.
The rest of the industry has a similar Price/Earnings ratio as NSP.
Compared to an average S&P500 Price/Earnings ratio of 26.34, NSP is valued a bit cheaper.
NSP is valuated reasonably with a Price/Forward Earnings ratio of 11.18.
77.91% of the companies in the same industry are more expensive than NSP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, NSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 11.18 |
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 | 24.87 | ||
| EV/EBITDA | 18.46 |
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 7.01%, NSP is a good candidate for dividend investing.
In the last 3 months the price of NSP has falen by -34.14%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NSP's Dividend Yield is rather good when compared to the industry average which is at 4.33. NSP pays more dividend than 96.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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.
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.
The dividend of NSP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP529.41%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
33.67
-0.55 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change-7.05%
Ins Owners5.26%
Ins Owner Change2.6%
Market Cap1.27B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target61.2 (81.76%)
Short Float %8.03%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 11.18 | ||
| P/S | 0.19 | ||
| P/FCF | 24.87 | ||
| P/OCF | 14.75 | ||
| P/B | 14.58 | ||
| P/tB | 17.14 | ||
| EV/EBITDA | 18.46 |
EPS(TTM)1.68
EY4.99%
EPS(NY)3.01
Fwd EY8.94%
FCF(TTM)1.35
FCFY4.02%
OCF(TTM)2.28
OCFY6.78%
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 | 4.38 |
F-Score5
WACC8.24%
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 4 / 10 to NSP.
What is the valuation status for NSP stock?
ChartMill assigns a valuation rating of 4 / 10 to INSPERITY INC (NSP). This can be considered as Fairly Valued.
What is the profitability of NSP stock?
INSPERITY INC (NSP) has a profitability rating of 4 / 10.
What are the PE and PB ratios of INSPERITY INC (NSP) stock?
The Price/Earnings (PE) ratio for INSPERITY INC (NSP) is 20.04 and the Price/Book (PB) ratio is 14.58.
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.