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NSP

InsperityNYSE:NSP Stock Report

Market Cap

US$4.6b

7D

-1.2%

1Y

60.1%

Updated

16 Oct, 2021

Data

Company Financials +
NSP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends4/6

NSP Overview

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

Insperity Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Insperity
Historical stock prices
Current Share PriceUS$117.94
52 Week HighUS$73.24
52 Week LowUS$122.01
Beta1.49
1 Month Change10.93%
3 Month Change27.09%
1 Year Change60.11%
3 Year Change9.61%
5 Year Change222.68%
Change since IPO2,044.36%

Recent News & Updates

Oct 01
Insperity's (NYSE:NSP) Returns On Capital Not Reflecting Well On The Business

Insperity's (NYSE:NSP) Returns On Capital Not Reflecting Well On The Business

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Aug 24
Insperity, Inc. (NYSE:NSP) Shares Could Be 34% Below Their Intrinsic Value Estimate

Insperity, Inc. (NYSE:NSP) Shares Could Be 34% Below Their Intrinsic Value Estimate

Does the August share price for Insperity, Inc. ( NYSE:NSP ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

NSPUS Professional ServicesUS Market
7D-1.2%1.9%2.0%
1Y60.1%27.4%27.6%

Return vs Industry: NSP exceeded the US Professional Services industry which returned 27.4% over the past year.

Return vs Market: NSP exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is NSP's price volatile compared to industry and market?
NSP volatility
NSP Beta1.49
Industry Beta1.07
Market Beta1

Stable Share Price: NSP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NSP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19863,600Paul Sarvadihttps://www.insperity.com

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.

Insperity Fundamentals Summary

How do Insperity's earnings and revenue compare to its market cap?
NSP fundamental statistics
Market CapUS$4.55b
Earnings (TTM)US$111.12m
Revenue (TTM)US$4.54b

41.0x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSP income statement (TTM)
RevenueUS$4.54b
Cost of RevenueUS$3.73b
Gross ProfitUS$803.58m
ExpensesUS$692.46m
EarningsUS$111.12m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.88
Gross Margin17.71%
Net Profit Margin2.45%
Debt/Equity Ratio423.3%

How did NSP perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

57%

Payout Ratio

Valuation

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

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSP ($117.94) is trading below our estimate of fair value ($213.28)

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


Price To Earnings Ratio

PE vs Industry: NSP is poor value based on its PE Ratio (41x) compared to the US Professional Services industry average (26.7x).

PE vs Market: NSP is poor value based on its PE Ratio (41x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NSP is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: NSP is overvalued based on its PB Ratio (52.2x) compared to the US Professional Services industry average (3x).


Future Growth

How is Insperity forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSP's forecast earnings growth (19.8% per year) is above the savings rate (2%).

Earnings vs Market: NSP's earnings (19.8% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: NSP's revenue (7.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: NSP's revenue (7.5% 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 (76.8%).


Past Performance

How has Insperity performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSP has high quality earnings.

Growing Profit Margin: NSP's current net profit margins (2.4%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: NSP's earnings have grown by 17.2% 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 (-30.1%) over the past year, making it difficult to compare to the Professional Services industry average (19.9%).


Return on Equity

High ROE: Whilst NSP's Return on Equity (127.63%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Insperity's financial position?


Financial Position Analysis

Short Term Liabilities: NSP's short term assets ($1.2B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: NSP's short term assets ($1.2B) exceed its long term liabilities ($638.1M).


Debt to Equity History and Analysis

Debt Level: NSP's debt to equity ratio (423.3%) is considered high.

Reducing Debt: NSP's debt to equity ratio has increased from 160.8% to 423.3% over the past 5 years.

Debt Coverage: NSP's debt is well covered by operating cash flow (64.6%).

Interest Coverage: NSP's interest payments on its debt are well covered by EBIT (33.2x coverage).


Balance Sheet


Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NSP's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: NSP's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 reasonable payout ratio (57%), NSP's dividend payments are 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?

5.8yrs

Average management tenure


CEO

Paul Sarvadi (64 yo)

32.75yrs

Tenure

US$9,561,338

Compensation

Mr. Paul J. Sarvadi has been Chairman and Chief Executive Officer at Insperity Inc since 1989. Mr. Sarvadi, Co-Founded Insperity Inc. (formerly known as Administaff Inc.) in 1986. He served as the Presiden...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD9.56M) is above average for companies of similar size in the US market ($USD5.19M).

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


Leadership Team

Experienced Management: NSP's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: NSP's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NSP insiders have only sold shares 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 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$4.553b
  • Shares outstanding: 38.60m
  • Website: https://www.insperity.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:22
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.