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.

Rewards

Trading at 31.1% below its fair value

Earnings are forecast to grow 14.43% per year

Earnings have grown 35.1% per year over the past 5 years

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

ManpowerGroup

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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

4.1%

NSP

1.8%

US Professional Services

1.7%

US Market


1 Year Return

-7.5%

NSP

33.3%

US Professional Services

23.2%

US Market

Return vs Industry: NSP underperformed the US Professional Services industry which returned 35.7% over the past year.

Return vs Market: NSP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NSPIndustryMarket
7 Day4.1%1.8%1.7%
30 Day9.5%6.8%4.2%
90 Day-9.6%8.8%11.9%
1 Year-6.4%-7.5%34.5%33.3%25.8%23.2%
3 Year176.3%162.7%66.5%61.2%52.8%42.9%
5 Year357.7%321.0%90.1%79.7%75.2%55.8%

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?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSP ($90.81) is trading below our estimate of fair value ($131.88)

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 (24x) compared to the Professional Services industry average (20.5x).

PE vs Market: NSP is poor value based on its PE Ratio (24x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NSP is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: NSP is overvalued based on its PB Ratio (88.6x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSP's forecast earnings growth (14.4% per year) is above the savings rate (1.7%).

Earnings vs Market: NSP's earnings (14.4% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: NSP's revenue (9.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: NSP's revenue (9.4% 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 (47.8%).


Next Steps

Past Performance

How has Insperity performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSP has high quality earnings.

Growing Profit Margin: NSP's current net profit margins (3.6%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: NSP's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: NSP's earnings growth over the past year (23.3%) is below its 5-year average (35.1% per year).

Earnings vs Industry: NSP earnings growth over the past year (23.3%) underperformed the Professional Services industry 23.5%.


Return on Equity

High ROE: Whilst NSP's Return on Equity (379.04%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Insperity's financial position?


Financial Position Analysis

Short Term Liabilities: NSP's short term assets ($893.7M) exceed its short term liabilities ($761.2M).

Long Term Liabilities: NSP's short term assets ($893.7M) exceed its long term liabilities ($489.9M).


Debt to Equity History and Analysis

Debt Level: NSP's debt to equity ratio (584.1%) 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 (67.3%).

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 3.7x debt).


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.6%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NSP's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NSP's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (29.1%), 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

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

14.0yrs

Average management tenure


CEO

Paul Sarvadi (62yo)

31yrs

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 ($USD7.18M) is above average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

14.0yrs

Average Tenure

59yo

Average Age

Experienced Management: NSP's management team is seasoned and experienced (14 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

69yo

Average Age

Experienced Board: NSP's board of directors are considered experienced (3.5 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

SellUS$210,27014 Nov 19
Jay Mincks
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares3,000
Max PriceUS$70.09
BuyUS$7,08407 Nov 19
Ellen Masterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$70.84
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

Ownership Breakdown

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


Management Team

  • Paul Sarvadi (62yo)

    Co-Founder

    • Tenure: 31yrs
    • Compensation: US$7.18m
  • A. Arizpe (61yo)

    President & COO

    • Tenure: 0.7yrs
    • Compensation: US$2.90m
  • Jay Mincks (65yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 21yrs
    • Compensation: US$2.79m
  • Doug Sharp (57yo)

    Senior VP of Finance

    • Tenure: 16.4yrs
    • Compensation: US$1.99m
  • Samuel Larson (57yo)

    Senior Vice President of Enterprise & Technology Solutions

    • Gregory Clouse

      Senior Vice President of Service Operations

      • Dan Herink (52yo)

        Senior VP of Legal

        • Tenure: 11.7yrs
        • Compensation: US$1.86m
      • Larry Shaffer

        Senior Vice President of Marketing & Business Development

        • Tenure: 4.1yrs
      • Suzanne Haugen

        Public Relations Manager

        • Tenure: 19.4yrs
      • JaNette Connell

        Senior Vice President of Corporate Human Resources

        • Tenure: 1yrs

      Board Members

      • Paul Sarvadi (62yo)

        Co-Founder

        • Tenure: 31yrs
        • Compensation: US$7.18m
      • Richard Rawson (70yo)

        Director

        • Tenure: 31yrs
        • Compensation: US$764.85k
      • Carol Kaufman (70yo)

        Independent Director

        • Tenure: 6.2yrs
        • Compensation: US$186.26k
      • John Morphy (71yo)

        Independent Director

        • Tenure: 3.7yrs
        • Compensation: US$182.92k
      • Austin Young (79yo)

        Lead Independent Director

        • Tenure: 5yrs
        • Compensation: US$239.59k
      • Tim Clifford (63yo)

        Independent Director

        • Tenure: 3.3yrs
        • Compensation: US$197.92k
      • John Lumelleau

        Independent Director

        • Tenure: 0.08yrs
      • Randy Mehl (51yo)

        Independent Director

        • Tenure: 2.1yrs
        • Compensation: US$168.59k
      • Ellen Masterson (68yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$182.92k
      • Latha Ramchand

        Independent Director

        • Tenure: 0.08yrs

      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$3.751b
      • Shares outstanding: 40.00m
      • 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 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 and worksite employees. In addition, the company offers Workforce Acceleration, an human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance products and services. It provides its other business performance solutions through desktop applications and cloud-based delivery models. The company operates through 80 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 Houston, Texas. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 23:31
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      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.