INSPERITY INC (NSP) Stock Fundamental Analysis
USA - NYSE:NSP - US45778Q1076 - Common Stock
50.66 USD
-0.83 (-1.61%)
Overall NSP gets a fundamental rating of 4 out of 10. We evaluated NSP against 82 industry peers in the Professional Services industry. Both the profitability and the financial health of NSP get a neutral evaluation. Nothing too spectacular is happening here. NSP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NSP was profitable.
In the past year NSP has reported a negative cash flow from operations.
NSP had positive earnings in each of the past 5 years.
NSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSP has a Return On Assets (1.98%) which is in line with its industry peers.
NSP's Return On Equity of 35.71% is amongst the best of the industry. NSP outperforms 87.80% of its industry peers.
NSP has a Return On Invested Capital (5.27%) which is in line with 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 12.76%.
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
NSP has a Profit Margin (0.60%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NSP has declined.
The Operating Margin of NSP (0.70%) is worse than 64.63% of its industry peers.
In the last couple of years the Operating Margin of NSP has declined.
NSP has a Gross Margin of 14.64%. This is in the lower half of the industry: NSP underperforms 79.27% 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
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.
NSP has less shares outstanding than it did 5 years ago.
NSP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.61 indicates that NSP is not in any danger for bankruptcy at the moment.
NSP has a Altman-Z score of 4.61. This is in the better half of the industry: NSP outperforms 78.05% of its industry peers.
A Debt/Equity ratio of 3.29 is on the high side and indicates that NSP has dependencies on debt financing.
The Debt to Equity ratio of NSP (3.29) is worse than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.61 |
ROIC/WACC0.63
WACC8.34%
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 65.85% 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 65.85% 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 -57.49% 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.
Looking at the last year, NSP shows a small growth in Revenue. The Revenue has grown by 2.40% in the last 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)-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
The Earnings Per Share is expected to grow by 3.84% on average over the next years.
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
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
A Price/Earnings ratio of 22.32 indicates a rather expensive valuation of NSP.
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 27.41. NSP is around the same levels.
With a Price/Forward Earnings ratio of 16.82, NSP is valued correctly.
Based on the Price/Forward Earnings ratio, NSP is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NSP to the average of the S&P500 Index (22.88), we can say NSP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 16.82 |
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 | 20.19 |
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 4.43%, NSP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.07, NSP pays a better dividend. On top of this NSP pays more dividend than 96.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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
225.00% 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.
DP225%
EPS Next 2Y-8.16%
EPS Next 3Y3.84%
NYSE:NSP (9/19/2025, 3:18:07 PM)
50.66
-0.83 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.78%
Inst Owner Change1.94%
Ins Owners5.22%
Ins Owner Change0.3%
Market Cap1.91B
Analysts50
Price Target61.2 (20.81%)
Short Float %6.58%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)-15.02%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 16.82 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 17.04 | ||
| P/tB | 19.28 | ||
| EV/EBITDA | 20.19 |
EPS(TTM)2.27
EY4.48%
EPS(NY)3.01
Fwd EY5.94%
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
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 4.61 |
F-Score3
WACC8.34%
ROIC/WACC0.63
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%