Insperity, Inc. Fundamental Analysis (NYSE: NSP)
Insperity, Inc. (NYSE: NSP) shows weak financial fundamentals with a PE ratio of 527.33, profit margin of 0.06%, and ROE of 6.90%. The company generates $7.0B in annual revenue with moderate year-over-year growth of 3.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NSP's fundamental strength across five key dimensions:
Efficiency Score
WeakNSP struggles to generate sufficient returns from assets.
Valuation Score
WeakNSP trades at a premium to fair value.
Growth Score
WeakNSP faces weak or negative growth trends.
Financial Health Score
ExcellentNSP maintains a strong and stable balance sheet.
Profitability Score
WeakNSP struggles to sustain strong margins.
Key Financial Metrics
Is NSP Expensive or Cheap?
P/E Ratio
NSP trades at 527.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NSP's PEG of 7.65 indicates potential overvaluation.
Price to Book
The market values Insperity, Inc. at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 26.27 times EBITDA. This signals the market has high growth expectations.
How Well Does NSP Make Money?
Net Profit Margin
For every $100 in sales, Insperity, Inc. keeps $0.06 as profit after all expenses.
Operating Margin
Core operations generate 0.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.90 in profit for every $100 of shareholder equity.
ROA
Insperity, Inc. generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Insperity, Inc. generates limited operating cash flow of $235.05M, signaling weaker underlying cash strength.
Free Cash Flow
Insperity, Inc. generates weak or negative free cash flow of $199.59M, restricting financial flexibility.
FCF Per Share
Each share generates $5.23 in free cash annually.
FCF Yield
NSP converts 11.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
527.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
10.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NSP Stacks Against Its Sector Peers
| Metric | NSP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 527.33 | 27.75 | Worse (Expensive) |
| ROE | 5.50% | 1185.00% | Weak |
| Net Margin | 0.06% | 39.00% | Weak |
| Debt/Equity | 10.80 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.41 | 22.04 | Neutral |
| ROA | 0.50% | -1347773.00% (disorted) | Weak |
NSP outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Insperity, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-105.13%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-181.33%
Industry Style: Cyclical, Value, Infrastructure
Declining