Insperity, Inc. (NYSE:NSP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NSP, it is a financially-healthy company with a great track record and a excellent growth outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Insperity here.
Solid track record with reasonable growth potential
In the previous year, NSP has ramped up its bottom line by 64%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, NSP also outperformed its industry, which delivered a growth of 31%. This is an notable feat for the company.
NSP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that NSP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NSP appears to have made good use of debt, producing operating cash levels of 1.88x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Insperity, I’ve put together three essential aspects you should further research:
- Valuation: What is NSP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NSP is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does NSP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from NSP as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NSP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.