(NSP) Insperity - Overview
Sector: Industrials | Industry: Staffing & Employment Services | Exchange: NYSE (USA) | Market Cap: 1.258m USD | Total Return: -43.6% in 12m
Avg Turnover: 18.5M
EPS Trend: -93.8%
Qual. Beats: 0
Rev. Trend: 98.2%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -0.4 is critical
Tailwinds
Idiosyncratic Leader
Insperity Inc. (NSP) is a professional employer organization (PEO) providing comprehensive human resources and business performance solutions for small and medium-sized enterprises in the United States. Founded in 1986, the company operates under a co-employment model, allowing clients to outsource payroll, benefits administration, and regulatory compliance while maintaining operational control over their workforce.
The company’s service architecture includes the HR360 full-service PEO, the HRCore platform for streamlined management, and HRScale, which integrates proprietary HR expertise with Workday technology. The PEO industry typically benefits from economies of scale by pooling thousands of employees from various small businesses to negotiate more competitive rates for health insurance and workers compensation coverage.
Beyond core administrative functions, Insperity offers talent acquisition, retirement planning, and performance management services to enhance human capital efficiency. Investors may find it useful to examine ValueRay for deeper insights into the companys long-term valuation metrics. This diversified service model aims to reduce the administrative burden on business owners, shifting liability and complex compliance tasks to the PEO provider.
- Workday partnership integration scales service capabilities for mid-market enterprise clients
- Healthcare cost fluctuations impact gross margins within the PEO insurance pool
- Small business hiring trends dictate core worksite employee growth rates
- Regulatory changes in employment law drive demand for outsourced compliance services
- Macroeconomic shifts influence retention rates and new client acquisition volume
| Net Income: -25.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 2.72 > 1.0 |
| NWC/Revenue: 2.07% < 20% (prev 2.83%; Δ -0.76% < -1%) |
| CFO/TA 0.04 > 3% & CFO 98.0m > Net Income -25.0m |
| Net Debt (-64.0m) to EBITDA (36.0m): -1.78 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (37.7m) vs 12m ago -0.79% < -2% |
| Gross Margin: 12.87% > 18% (prev 0.15%; Δ 1.27k% > 0.5%) |
| Asset Turnover: 315.5% > 50% (prev 309.9%; Δ 5.53% > 0%) |
| Interest Coverage Ratio: -0.38 > 6 (EBITDA TTM 36.0m / Interest Expense TTM 24.0m) |
| A: 0.06 (Total Current Assets 1.73b - Total Current Liabilities 1.59b) / Total Assets 2.20b |
| B: 0.30 (Retained Earnings 648.0m / Total Assets 2.20b) |
| C: -0.00 (EBIT TTM -9.00m / Avg Total Assets 2.17b) |
| D: 0.30 (Book Value of Equity 649.0m / Total Liabilities 2.13b) |
| Altman-Z'' = 1.68 = BB |
| DSRI: 1.01 (Receivables 880.0m/842.0m, Revenue 6.84b/6.64b) |
| GMI: 1.19 (GM 12.87% / 15.31%) |
| AQI: 0.97 (AQ_t 0.11 / AQ_t-1 0.11) |
| SGI: 1.03 (Revenue 6.84b / 6.64b) |
| TATA: -0.06 (NI -25.0m - CFO 98.0m) / TA 2.20b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 34.47 with a total of 453,999 shares traded.
Over the past week, the price has changed by +11.70%,
over one month by -7.36%,
over three months by +59.57% and
over the past year by -43.58%.
Insperity has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold NSP.
- StrongBuy: 0
- Buy: 1
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 39.5 | 14.6% |
P/E Forward = 16.4745
P/S = 0.1838
P/B = 18.7713
P/EG = 1.4178
Revenue TTM = 6.84b USD
EBIT TTM = -9.00m USD
EBITDA TTM = 36.0m USD
Long Term Debt = 369.0m USD (from longTermDebt, last quarter)
Short Term Debt = 19.0m USD (from shortTermDebt, last fiscal year)
Debt = 491.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 61.0m
Net Debt = -64.0m USD (calculated: Debt 491.0m - CCE 555.0m)
Enterprise Value = 1.19b USD (1.26b + Debt 491.0m - CCE 555.0m)
Interest Coverage Ratio = -0.38 (Ebit TTM -9.00m / Interest Expense TTM 24.0m)
EV/FCF = 17.82x (Enterprise Value 1.19b / FCF TTM 67.0m)
FCF Yield = 5.61% (FCF TTM 67.0m / Enterprise Value 1.19b)
FCF Margin = 0.98% (FCF TTM 67.0m / Revenue TTM 6.84b)
Net Margin = -0.37% (Net Income TTM -25.0m / Revenue TTM 6.84b)
Gross Margin = 12.87% ((Revenue TTM 6.84b - Cost of Revenue TTM 5.96b) / Revenue TTM)
Gross Margin QoQ = 15.36% (prev 10.31%)
Tobins Q-Ratio = 0.54 (Enterprise Value 1.19b / Total Assets 2.20b)
Interest Expense / Debt = 4.89% (Interest Expense 24.0m / Debt 491.0m)
Taxrate = 47.62% (30.0m / 63.0m)
NOPAT = -4.71m (EBIT -9.00m * (1 - 47.62%)) [loss with tax shield]
Current Ratio = 1.09 (Total Current Assets 1.73b / Total Current Liabilities 1.59b)
Debt / Equity = 7.33 (Debt 491.0m / totalStockholderEquity, last quarter 67.0m)
Debt / EBITDA = -1.78 (Net Debt -64.0m / EBITDA 36.0m)
Debt / FCF = -0.96 (Net Debt -64.0m / FCF TTM 67.0m)
Total Stockholder Equity = 78.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.15% (Net Income -25.0m / Total Assets 2.20b)
RoE = -32.05% (Net Income TTM -25.0m / Total Stockholder Equity 78.0m)
RoCE = -2.01% (EBIT -9.00m / Capital Employed (Equity 78.0m + L.T.Debt 369.0m))
RoIC = -2.21% (negative operating profit) (NOPAT -4.71m / Invested Capital 213.4m)
WACC = 5.20% (E(1.26b)/V(1.75b) * Re(6.23%) + D(491.0m)/V(1.75b) * Rd(4.89%) * (1-Tc(0.48)))
Discount Rate = 6.23% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -4.84 | Cagr: 0.10%
[DCF] Terminal Value 77.97% ; FCFF base≈43.0m ; Y1≈49.3m ; Y5≈72.5m
[DCF] Fair Price = 30.28 (EV 1.09b - Net Debt -64.0m = Equity 1.16b / Shares 38.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -93.84 | EPS CAGR: -51.93% | SUE: 0.34 | # QB: 0
Revenue Correlation: 98.20 | Revenue CAGR: 2.81% | SUE: 0.18 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.37 | Chg30d=-21.25% | Revisions=-43% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.23 | Chg30d=-36.53% | Revisions=-25% | Analysts=5
EPS current Year (2026-12-31): EPS=2.05 | Chg30d=-4.07% | Revisions=-33% | GrowthEPS=+99.4% | GrowthRev=+1.1%
EPS next Year (2027-12-31): EPS=2.80 | Chg30d=-9.57% | Revisions=-56% | GrowthEPS=+36.1% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -56%