INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
34 USD
-0.46 (-1.33%)
34 USD
0 (0%)
Overall NSP gets a fundamental rating of 5 out of 10. We evaluated NSP against 87 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
NSP has a Return On Assets of 0.84%. This is comparable to the rest of the industry: NSP outperforms 44.83% of its industry peers.
Looking at the Return On Equity, with a value of 19.54%, NSP is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
NSP has a Return On Invested Capital (2.47%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 12.15%.
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 42.53% of the companies in the same industry.
In the last couple of years the Profit Margin of NSP has declined.
The Operating Margin of NSP (0.31%) is worse than 65.52% of its industry peers.
In the last couple of years the Operating Margin of NSP has declined.
NSP's Gross Margin of 14.00% is on the low side compared to the rest of the industry. NSP is outperformed by 81.61% 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.
The number of shares outstanding for NSP has been reduced compared to 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 4.38 indicates that NSP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.38, NSP belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 7.24, NSP is in line with its industry, outperforming 47.13% 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.
NSP has a Debt to Equity ratio of 4.24. This is amonst the worse of the industry: NSP underperforms 85.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.3
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NSP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, NSP is doing worse than 67.82% 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.
NSP's Quick ratio of 1.12 is on the low side compared to the rest of the industry. NSP is outperformed by 67.82% 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%.
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 3.19%.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
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 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.
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 20.24, which indicates a rather expensive current valuation of NSP.
NSP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NSP to the average of the S&P500 Index (25.65), we can say NSP is valued slightly cheaper.
NSP is valuated reasonably with a Price/Forward Earnings ratio of 11.29.
74.71% of the companies in the same industry are more expensive than NSP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.45. NSP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 11.29 |
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.
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 | 25.11 | ||
| EV/EBITDA | 18.6 |
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
NSP has a Yearly Dividend Yield of 7.40%, which is a nice return.
In the last 3 months the price of NSP has falen by -38.43%. 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 4.43. NSP pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
5.2 History
On average, the dividend of NSP grows each year by 14.57%, which is quite nice.
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.
NSP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP529.41%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
34
-0.46 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change0.47%
Ins Owners5.26%
Ins Owner Change0.17%
Market Cap1.28B
Revenue(TTM)6.76B
Net Income(TTM)17.00M
Analysts50
Price Target45.9 (35%)
Short Float %7.85%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
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)-25%
PT rev (3m)-25%
EPS NQ rev (1m)-694.77%
EPS NQ rev (3m)-694.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.19 | ||
| P/FCF | 25.11 | ||
| P/OCF | 14.89 | ||
| P/B | 14.72 | ||
| P/tB | 17.31 | ||
| EV/EBITDA | 18.6 |
EPS(TTM)1.68
EY4.94%
EPS(NY)3.01
Fwd EY8.86%
FCF(TTM)1.35
FCFY3.98%
OCF(TTM)2.28
OCFY6.71%
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
WACC8.19%
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 5 / 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 5 / 10.
What are the PE and PB ratios of INSPERITY INC (NSP) stock?
The Price/Earnings (PE) ratio for INSPERITY INC (NSP) is 20.24 and the Price/Book (PB) ratio is 14.72.
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.