NYSE:NSP

Stock Analysis Report

Executive Summary

Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Insperity's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

NSP

0.04%

US Professional Services

0.5%

US Market


1 Year Return

-4.2%

NSP

14.2%

US Professional Services

6.8%

US Market

Return vs Industry: NSP underperformed the US Professional Services industry which returned 14.2% over the past year.

Return vs Market: NSP underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

NSPIndustryMarket
7 Day2.2%0.04%0.5%
30 Day3.7%-2.6%-0.8%
90 Day-25.2%-2.2%-0.9%
1 Year-3.2%-4.2%15.3%14.2%9.2%6.8%
3 Year196.6%182.1%39.7%35.1%45.6%36.2%
5 Year710.9%600.0%85.6%75.7%63.2%45.4%

Price Volatility Vs. Market

How volatile is Insperity's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Insperity undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSP ($103.11) is trading below our estimate of fair value ($141.92)

Significantly Below Fair Value: NSP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NSP is poor value based on its PE Ratio (25.8x) compared to the Professional Services industry average (19.5x).

PE vs Market: NSP is poor value based on its PE Ratio (25.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NSP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NSP is overvalued based on its PB Ratio (31.5x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

How is Insperity forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSP's forecast earnings growth (19.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NSP's earnings (19.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: NSP's earnings are forecast to grow, but not significantly.

Revenue vs Market: NSP's revenue (11.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NSP's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NSP's Return on Equity is forecast to be very high in 3 years time (54.8%).


Next Steps

Past Performance

How has Insperity performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NSP's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: NSP's earnings growth over the past year (52.1%) exceeds its 5-year average (36% per year).

Earnings vs Industry: NSP earnings growth over the past year (52.1%) exceeded the Professional Services industry 36.8%.


Return on Equity

High ROE: Whilst NSP's Return on Equity (122.85%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: NSP has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: NSP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Insperity's financial position?


Financial Position Analysis

Short Term Liabilities: NSP's short term assets ($919.2M) exceeds its short term liabilities ($769.8M)

Long Term Liabilities: NSP's short term assets (919.2M) exceeds its long term liabilities (412.3M)


Debt to Equity History and Analysis

Debt Level: NSP's debt to equity ratio (125.6%) is considered high

Reducing Debt: Insufficient data to determine if NSP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NSP's debt is well covered by operating cash flow (141.5%).

Interest Coverage: NSP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NSP has a low level of unsold assets or inventory.

Debt Coverage by Assets: NSP's debt is covered by short term assets (assets are 5.426070x debt).


Next Steps

Dividend

What is Insperity's current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NSP's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NSP's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: NSP's dividends per share have been stable in the past 10 years.

Growing Dividend: NSP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (25%), NSP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Insperity's salary, the management and board of directors tenure and is there insider trading?

13.8yrs

Average management tenure


CEO

Paul Sarvadi (62yo)

30.8yrs

Tenure

US$7,183,924

Compensation

Mr. Paul J. Sarvadi has been Chairman and Chief Executive Officer at Insperity Inc since 1989. Mr. Sarvadi, Co-Founded Insperity, Inc. (also known as Administaff Inc.) in 1986 and has been its Executive Ch ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD7.18M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Management Age and Tenure

13.8yrs

Average Tenure

59yo

Average Age

Experienced Management: NSP's management team is seasoned and experienced (13.8 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

69yo

Average Age

Experienced Board: NSP's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: NSP insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$243,37529 Aug 19
Timothy Clifford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$97.35
SellUS$248,71015 Aug 19
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares2,618
Max PriceUS$95.00
SellUS$650,00015 Jul 19
Douglas Sharp
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance
Shares5,000
Max PriceUS$130.00
SellUS$362,91012 Jun 19
Austin Young
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,000
Max PriceUS$120.97
SellUS$1,140,30029 May 19
Paul Sarvadi
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares10,000
Max PriceUS$114.03
SellUS$778,00906 May 19
Douglas Sharp
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance
Shares6,522
Max PriceUS$119.29
SellUS$600,05006 May 19
Daniel Herink
EntityIndividual
Role
Chief Legal Officer
Senior VP of Legal
Shares5,000
Max PriceUS$120.01
SellUS$4,812,60002 May 19
Paul Sarvadi
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares40,000
Max PriceUS$120.92
SellUS$999,20007 Mar 19
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares8,000
Max PriceUS$124.90
SellUS$646,70027 Feb 19
Daniel Herink
EntityIndividual
Role
Chief Legal Officer
Senior VP of Legal
Shares5,000
Max PriceUS$129.34
SellUS$655,92327 Feb 19
Richard Rawson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,067
Max PriceUS$129.45
SellUS$82,74522 Feb 19
John Morphy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares650
Max PriceUS$127.30
SellUS$306,32620 Feb 19
Daniel Herink
EntityIndividual
Role
Chief Legal Officer
Senior VP of Legal
Shares2,354
Max PriceUS$130.13
SellUS$306,76420 Feb 19
Douglas Sharp
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance
Shares2,359
Max PriceUS$130.04
SellUS$6,982,95615 Feb 19
Richard Rawson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares55,834
Max PriceUS$125.09
SellUS$3,755,70015 Feb 19
Paul Sarvadi
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares30,000
Max PriceUS$125.19
SellUS$1,019,67815 Feb 19
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares7,998
Max PriceUS$127.87
SellUS$336,32715 Feb 19
Douglas Sharp
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance
Shares2,546
Max PriceUS$132.10
SellUS$529,35415 Feb 19
Richard Rawson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,166
Max PriceUS$127.09
SellUS$250,00013 Feb 19
James Allison
EntityIndividual
Shares2,000
Max PriceUS$125.00
SellUS$231,80013 Nov 18
James Allison
EntityIndividual
Shares2,000
Max PriceUS$115.90
SellUS$313,22708 Nov 18
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares2,700
Max PriceUS$116.01
SellUS$3,498,30008 Nov 18
Paul Sarvadi
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares30,000
Max PriceUS$116.61
SellUS$113,18207 Nov 18
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares1,042
Max PriceUS$108.62

Ownership Breakdown


Management Team

  • Paul Sarvadi (62yo)

    Co-Founder

    • Tenure: 30.8yrs
    • Compensation: US$7.18m
  • A. Arizpe (61yo)

    President & COO

    • Tenure: 0.4yrs
    • Compensation: US$2.90m
  • Jay Mincks (65yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 20.8yrs
    • Compensation: US$2.79m
  • Doug Sharp (57yo)

    Senior VP of Finance

    • Tenure: 16.2yrs
    • Compensation: US$1.99m
  • Samuel Larson (57yo)

    Senior Vice President of Enterprise & Technology Solutions

    • Tenure: 0yrs
  • Gregory Clouse

    Senior Vice President of Service Operations

    • Tenure: 0yrs
  • Dan Herink (52yo)

    Senior VP of Legal

    • Tenure: 11.4yrs
    • Compensation: US$1.86m
  • Larry Shaffer

    Senior Vice President of Marketing & Business Development

    • Tenure: 3.8yrs
  • Suzanne Haugen

    Public Relations Manager

    • Tenure: 19.2yrs
  • JaNette Connell

    Senior Vice President of Corporate Human Resources

    • Tenure: 0.8yrs

Board Members

  • Paul Sarvadi (62yo)

    Co-Founder

    • Tenure: 30.8yrs
    • Compensation: US$7.18m
  • Richard Rawson (70yo)

    Director

    • Tenure: 30.8yrs
    • Compensation: US$764.85k
  • Carol Kaufman (70yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$186.26k
  • John Morphy (71yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$182.92k
  • Austin Young (79yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$239.59k
  • Tim Clifford (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$197.92k
  • Randy Mehl (51yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$168.59k
  • Ellen Masterson (68yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$182.92k

Company Information

Insperity, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Insperity, Inc.
  • Ticker: NSP
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$4.247b
  • Shares outstanding: 41.19m
  • Website: https://www.insperity.com

Number of Employees


Location

  • Insperity, Inc.
  • 19001 Crescent Springs Drive
  • Kingwood
  • Texas
  • 77339
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1997
ASFDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1997

Biography

Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses. The company offers its HR services through its Workforce Optimiza ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.