INSPERITY INC (NSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSP - US45778Q1076 - Common Stock
46.72 USD
-0.56 (-1.18%)
46.72 USD
0 (0%)
Taking everything into account, NSP scores 4 out of 10 in our fundamental rating. NSP was compared to 87 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- NSP had positive earnings in the past year.
- 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's Return On Assets of 0.84% is in line compared to the rest of the industry. NSP outperforms 48.86% of its industry peers.
- NSP's Return On Equity of 19.54% is fine compared to the rest of the industry. NSP outperforms 71.59% of its industry peers.
- With a Return On Invested Capital value of 2.47%, NSP perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NSP is significantly above the industry average of 11.85%.
- The last Return On Invested Capital (2.47%) 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 | 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 45.45% of the companies in the same industry.
- In the last couple of years the Profit Margin of NSP has declined.
- NSP has a worse Operating Margin (0.31%) than 63.64% of its industry peers.
- NSP's Operating Margin has declined in the last couple of years.
- The Gross Margin of NSP (14.00%) is worse than 78.41% 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.
- The number of shares outstanding for NSP has been reduced compared to 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 4.53. This indicates that NSP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NSP (4.53) is better than 82.95% 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.
- With a Debt to FCF ratio value of 7.24, NSP perfoms like the industry average, outperforming 52.27% 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 worse Debt to Equity ratio (4.24) than 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.29
WACC8.46%
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 65.91% 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 65.91% 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.
- Looking at the last year, NSP shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
- 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 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-16.95%
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
- Based on the Price/Earnings ratio of 27.81, the valuation of NSP can be described as expensive.
- 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 (27.21), we can say NSP is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 18.97, the valuation of NSP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NSP indicates a somewhat cheap valuation: NSP is cheaper than 60.23% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
- 60.23% of the companies in the same industry are cheaper than NSP, based on the Enterprise Value to EBITDA ratio.
- 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 | 34.54 | ||
| EV/EBITDA | 25.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.95%
EPS Next 3Y-0.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.08%, NSP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.44, NSP pays a better dividend. On top of this NSP pays more dividend than 94.32% 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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.
- NSP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP529.41%
EPS Next 2Y-16.95%
EPS Next 3Y-0.2%
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.
Can you provide the valuation status for INSPERITY INC?
ChartMill assigns a valuation rating of 2 / 10 to INSPERITY INC (NSP). This can be considered as Overvalued.
Can you provide the profitability details for INSPERITY INC?
INSPERITY INC (NSP) has a profitability rating of 5 / 10.
Can you provide the financial health for NSP stock?
The financial health rating of INSPERITY INC (NSP) is 5 / 10.
Can you provide the expected EPS growth for NSP stock?
The Earnings per Share (EPS) of INSPERITY INC (NSP) is expected to decline by -67.63% in the next year.