NYSE:NSP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer and fair value.


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

Stable Share Price: NSP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

NSP

3.3%

US Professional Services

1.7%

US Market


1 Year Return

-53.3%

NSP

13.2%

US Professional Services

8.5%

US Market

Return vs Industry: NSP underperformed the US Professional Services industry which returned 13.2% over the past year.

Return vs Market: NSP underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

NSPIndustryMarket
7 Day0.3%3.3%1.7%
30 Day11.8%9.6%9.5%
90 Day-14.4%-3.6%0.1%
1 Year-52.6%-53.3%14.1%13.2%11.0%8.5%
3 Year51.4%44.0%46.3%42.0%32.2%23.5%
5 Year132.4%113.2%63.8%55.3%58.6%40.8%

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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSP ($55) is trading below our estimate of fair value ($88.94)

Significantly Below Fair Value: NSP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NSP is good value based on its PE Ratio (16.1x) compared to the Professional Services industry average (18.6x).

PE vs Market: NSP is poor value based on its PE Ratio (16.1x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: NSP is poor value based on its PEG Ratio (40.5x)


Price to Book Ratio

PB vs Industry: NSP has negative assets, so we can't compare its PB Ratio to the US Professional Services industry average.


Next Steps

Future Growth

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

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSP's forecast earnings growth (0.4% per year) is below the savings rate (2.2%).

Earnings vs Market: NSP's earnings (0.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: NSP's revenue (5.3% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: NSP's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NSP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Insperity performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSP has high quality earnings.

Growing Profit Margin: NSP's current net profit margins (3.1%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: NSP's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: NSP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NSP had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Professional Services industry average (10.2%).


Return on Equity

High ROE: NSP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Insperity's financial position?


Financial Position Analysis

Short Term Liabilities: NSP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NSP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NSP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NSP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: NSP's debt is well covered by operating cash flow (31.4%).

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


Balance Sheet


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NSP's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: NSP's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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 reasonably low payout ratio (38.1%), 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

How experienced are the management team and are they aligned to shareholders interests?

14.5yrs

Average management tenure


CEO

Paul Sarvadi (62yo)

31.42yrs

Tenure

US$7,363,179

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 ($USD7.36M) is above average for companies of similar size in the US market ($USD4.77M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Sarvadi
Co-Founder31.42yrsUS$7.36m4.6% $98.2m
Arthur A. Arizpe
President & COO1.08yrsUS$2.85m0.39% $8.3m
Douglas Sharp
Senior VP of Finance16.83yrsUS$2.18m0.059% $1.3m
Daniel Herink
Senior VP of Legal12.08yrsUS$1.82m0.078% $1.7m
Jay Mincks
Executive Vice President of Sales & Marketing21.42yrsUS$2.57m0.17% $3.7m
Samuel Larson
Senior Vice President of Enterprise & Technology Solutionsno datano datano data
Suzanne Haugen
Public Relations Manager19.83yrsno datano data
Larry Shaffer
Senior Vice President of Marketing & Business Development4.5yrsno datano data
JaNette Connell
Senior Vice President of Corporate Human Resources1.42yrsno datano data
Gregory Clouse
Senior Vice President of Service Operationsno datano datano data

14.5yrs

Average Tenure

59yo

Average Age

Experienced Management: NSP's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Sarvadi
Co-Founder31.42yrsUS$7.36m4.6% $98.2m
Richard Rawson
Director31.42yrsUS$216.50k1.34% $28.6m
Carol Kaufman
Independent Director6.58yrsUS$241.50k0.083% $1.8m
John Morphy
Independent Director4.08yrsUS$231.90k0.021% $453.3k
Timothy Clifford
Lead Independent Director0.42yrUS$247.12k0.034% $716.6k
John Lumelleau
Independent Director0.50yrUS$75.39k0.011% $230.9k
Randall Mehl
Independent Director2.5yrsUS$226.50k0.023% $483.1k
Ellen Masterson
Independent Director2.75yrsUS$231.50k0.020% $424.3k
Latha Ramchand
Independent Director0.50yrUS$75.39k0.011% $230.9k

2.8yrs

Average Tenure

67yo

Average Age

Experienced Board: NSP's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.132b
  • Shares outstanding: 38.77m
  • 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 improve business performance for small and medium-sized businesses. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which include a range of human resources functions, such as payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. It also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; various personnel management services; and employer liability management services, as well as solutions for middle market. In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; expense management; retirement; and insurance services. The company operates through 82 offices in the United States. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 02:04
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.