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Insperity

NYSE:NSP
Snowflake Description

Good value with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NSP
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Insperity, Inc. provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • Insperity has significant price volatility in the past 3 months.
NSP Share Price and Events
7 Day Returns
29.5%
NYSE:NSP
11%
US Professional Services
9.9%
US Market
1 Year Returns
-69.2%
NYSE:NSP
-7.5%
US Professional Services
-11.9%
US Market
NSP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Insperity (NSP) 29.5% -42.4% -54.9% -69.2% -8.8% 48.2%
US Professional Services 11% -17.2% -18.8% -7.5% 14.3% 27.3%
US Market 9.9% -15% -21.5% -11.9% 5.1% 18.1%
1 Year Return vs Industry and Market
  • NSP underperformed the Professional Services industry which returned -7.5% over the past year.
  • NSP underperformed the Market in United States of America which returned -11.9% over the past year.
Price Volatility
NSP
Industry
5yr Volatility vs Market

NSP Value

 Is Insperity undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Insperity to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Insperity.

NYSE:NSP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NSP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.79
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.787 (1 + (1- 21%) (22.49%))
0.951
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.951 * 5.44%)
6.91%

Discounted Cash Flow Calculation for NYSE:NSP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Insperity is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:NSP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.91%)
2020 181.60 Analyst x1 169.85
2021 204.01 Analyst x1 178.48
2022 220.36 Est @ 8.01% 180.32
2023 233.88 Est @ 6.13% 179.00
2024 245.14 Est @ 4.81% 175.48
2025 254.68 Est @ 3.89% 170.52
2026 262.95 Est @ 3.25% 164.67
2027 270.29 Est @ 2.79% 158.33
2028 276.99 Est @ 2.48% 151.76
2029 283.24 Est @ 2.26% 145.15
Present value of next 10 years cash flows $1,673.00
NYSE:NSP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $283.24 × (1 + 1.74%) ÷ (6.91% – 1.74%)
$5,569.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,569.59 ÷ (1 + 6.91%)10
$2,854.15
NYSE:NSP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,673.00 + $2,854.15
$4,527.15
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,527.15 / 39.38
$114.96
NYSE:NSP Discount to Share Price
Calculation Result
Value per share (USD) From above. $114.96
Current discount Discount to share price of $38.78
= -1 x ($38.78 - $114.96) / $114.96
66.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Insperity is available for.
Intrinsic value
>50%
Share price is $38.78 vs Future cash flow value of $114.96
Current Discount Checks
For Insperity to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Insperity's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Insperity's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Insperity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Insperity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NSP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.72
NYSE:NSP Share Price ** NYSE (2020-03-27) in USD $38.78
United States of America Professional Services Industry PE Ratio Median Figure of 36 Publicly-Listed Professional Services Companies 12.33x
United States of America Market PE Ratio Median Figure of 2,945 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Insperity.

NYSE:NSP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NSP Share Price ÷ EPS (both in USD)

= 38.78 ÷ 3.72

10.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insperity is good value based on earnings compared to the US Professional Services industry average.
  • Insperity is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Insperity's expected growth come at a high price?
Raw Data
NYSE:NSP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
2.4%per year
United States of America Professional Services Industry PEG Ratio Median Figure of 29 Publicly-Listed Professional Services Companies 1.43x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

NYSE:NSP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.44x ÷ 2.4%

4.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insperity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Insperity's assets?
Raw Data
NYSE:NSP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $0.10
NYSE:NSP Share Price * NYSE (2020-03-27) in USD $38.78
United States of America Professional Services Industry PB Ratio Median Figure of 57 Publicly-Listed Professional Services Companies 1.68x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.26x
NYSE:NSP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NSP Share Price ÷ Book Value per Share (both in USD)

= 38.78 ÷ 0.10

374.32x

* Primary Listing of Insperity.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insperity is overvalued based on assets compared to the US Professional Services industry average.
X
Value checks
We assess Insperity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Insperity has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NSP Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Insperity expected to grow at an attractive rate?
  • Insperity's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Insperity's earnings growth is positive but not above the United States of America market average.
  • Insperity's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NSP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NSP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 2.4%
NYSE:NSP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 7.2%
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 23.3%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NSP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NSP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,984 159 4
2020-12-31 4,605 138 5
2020-03-30
NYSE:NSP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,315 205 149
2019-09-30 4,206 161 153
2019-06-30 4,088 240 164
2019-03-31 3,967 272 159
2018-12-31 3,829 184 134
2018-09-30 3,688 215 124
2018-06-30 3,559 204 108
2018-03-31 3,432 200 97
2017-12-31 3,300 213 83
2017-09-30 3,203 166 77
2017-06-30 3,110 98 72
2017-03-31 3,022 81 67

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Insperity's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
  • Insperity's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NSP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Insperity Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NSP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.05 4.16 3.94 2.00
2020-12-31 3.49 3.50 3.47 3.00
2020-03-30
NYSE:NSP Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.72
2019-09-30 3.78
2019-06-30 4.00
2019-03-31 3.88
2018-12-31 3.24
2018-09-30 3.02
2018-06-30 2.62
2018-03-31 2.37
2017-12-31 2.02
2017-09-30 1.87
2017-06-30 1.74
2017-03-31 1.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Insperity is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Insperity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Insperity has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NSP Past Performance

  How has Insperity performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Insperity's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insperity has delivered over 20% year on year earnings growth in the past 5 years.
  • Insperity's 1-year earnings growth is less than its 5-year average (11.8% vs 33.2%)
  • Insperity's earnings growth has not exceeded the US Professional Services industry average in the past year (11.8% vs 13.9%).
Earnings and Revenue History
Insperity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Insperity Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NSP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,314.80 149.34 517.58
2019-09-30 4,206.47 153.48 513.62
2019-06-30 4,088.21 163.71 497.42
2019-03-31 3,967.19 159.39 484.79
2018-12-31 3,828.55 133.54 470.73
2018-09-30 3,688.29 124.48 460.59
2018-06-30 3,558.67 107.64 453.78
2018-03-31 3,431.93 97.44 441.51
2017-12-31 3,300.22 82.89 422.61
2017-09-30 3,202.80 76.92 402.20
2017-06-30 3,109.82 71.79 387.71
2017-03-31 3,021.60 67.31 377.56
2016-12-31 2,941.35 64.50 368.66
2016-09-30 2,862.29 61.37 360.19
2016-06-30 2,786.04 59.27 351.54
2016-03-31 2,706.54 57.01 344.58
2015-12-31 2,603.61 38.41 343.12
2015-09-30 2,549.47 38.97 341.26
2015-06-30 2,483.49 35.46 339.99
2015-03-31 2,420.27 30.15 338.15
2014-12-31 2,357.79 26.00 331.26
2014-09-30 2,319.06 24.41 324.06
2014-06-30 2,298.62 26.06 318.00
2014-03-31 2,281.28 27.61 316.01
2013-12-31 2,256.11 31.12 312.62
2013-09-30 2,231.42 35.09 306.74
2013-06-30 2,203.50 36.42 306.36
2013-03-31 2,175.48 38.49 297.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Insperity made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Insperity used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • Insperity has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Insperity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Insperity has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NSP Health

 How is Insperity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Insperity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Insperity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Insperity's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Insperity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Insperity Company Filings, last reported 2 months ago.

NYSE:NSP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4.08 269.40 402.07
2019-09-30 40.99 239.40 304.32
2019-06-30 134.89 169.40 386.06
2019-03-31 119.19 144.40 452.54
2018-12-31 77.68 144.40 387.55
2018-09-30 151.92 104.40 365.88
2018-06-30 117.86 104.40 315.92
2018-03-31 102.83 104.40 356.57
2017-12-31 66.32 104.40 356.22
2017-09-30 101.94 104.40 287.88
2017-06-30 83.70 104.40 243.82
2017-03-31 86.39 104.40 305.69
2016-12-31 60.53 104.40 287.89
2016-09-30 69.58 104.40 225.37
2016-06-30 64.87 104.40 273.45
2016-03-31 55.35 104.40 320.74
2015-12-31 172.46 0.00 279.41
2015-09-30 175.94 0.00 210.84
2015-06-30 191.35 0.00 189.38
2015-03-31 213.10 0.00 257.43
2014-12-31 204.10 0.00 305.09
2014-09-30 248.01 0.00 225.41
2014-06-30 247.37 0.00 212.32
2014-03-31 247.32 0.00 260.42
2013-12-31 253.27 0.00 272.10
2013-09-30 248.74 0.00 209.24
2013-06-30 241.48 0.00 231.18
2013-03-31 239.39 0.00 278.83
  • Insperity's level of debt (6604.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Insperity's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (76.2%, greater than 20% of total debt).
  • Insperity earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Insperity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Insperity has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NSP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.13%
Current annual income from Insperity dividends.
If you bought $2,000 of Insperity shares you are expected to receive $83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Insperity's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.98%).
  • Insperity's dividend is below the markets top 25% of dividend payers in United States of America (5.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NSP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NSP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2020-03-30
NYSE:NSP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 1.600 3.313
2019-11-21 1.200 1.431
2019-11-04 1.200 1.686
2019-05-24 1.200 1.116
2019-02-28 1.200 0.985
2018-11-30 0.800 0.780
2018-08-31 0.800 0.722
2018-05-25 0.800 0.793
2018-02-22 0.800 1.070
2017-11-16 0.600 1.016
2017-08-24 0.600 1.331
2017-05-01 0.600 1.552
2017-02-17 0.500 1.151
2016-11-16 0.500 1.379
2016-09-02 0.500 1.399
2016-05-23 0.500 1.382
2016-03-01 0.440 1.614
2015-11-12 0.440 1.941
2015-08-19 0.440 1.968
2015-05-29 0.440 1.731
2015-02-20 0.380 1.446
2014-11-14 0.380 2.069
2014-08-21 0.380 2.588
2014-05-15 0.380 2.383
2014-02-18 0.340 2.255
2013-11-13 0.340 2.040
2013-08-21 0.340 1.893
2013-05-16 0.340 2.140
2013-02-20 0.340 2.417
2012-11-26 0.340 2.156
2012-08-16 0.340 2.623
2012-05-16 0.340 2.618
2012-02-22 0.300 2.078
2011-11-10 0.300 2.268
2011-08-22 0.300 2.552
2011-05-18 0.300 2.088
2011-02-18 0.300 2.011
2010-11-10 0.260 1.787
2010-08-23 0.260 2.071
2010-05-07 0.260 2.132
2010-02-16 0.260 2.474
2009-11-13 0.260 2.250
2009-08-19 0.260 2.055
2009-05-06 0.260 2.203

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Insperity's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Insperity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Insperity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Insperity has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NSP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Sarvadi
COMPENSATION $7,183,924
AGE 62
TENURE AS CEO 31.2 years
CEO Bio

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 Chairman and Chief Executive Officer 1989. He served as a President at Insperity, Inc. since 1989 until August 2003. Mr. Sarvadi has been Management Director of Insperity, Inc. since 1986. He served as the President of Administaff from 1989 to August 2003. Prior to that, he served as Vice President and Treasurer of Administaff Inc. from 1986 to April 1987 and then Vice President from April 1987 to 1989. He has been President of National Association of Professional Employer Organizations (NAPEO). He was President of the Texas Chapter of the NAPEO for three of the first four years of its existence. He serves on the Board of Directors of the DePelchin Children's Center in Houston. He was a Member of Board of Directors of NAPEO for five years and served as its President. In 2007, he was inducted into the Texas Business Hall of Fame. In 1995, Mr. Sarvadi was selected as Houston's Ernst & Young Entrepreneur of the Year for service industries and in 2001, he was selected as the 2001 National Ernst & Young Entrepreneur of the Year for service industries. In 2004, he received the Conn Family Distinguished New Venture Leader Award from Mays Business School at Texas A&M University. Mr. Sarvadi attended Rice University and the University of Houston. Mr. Sarvadi brings substantial business and operational experience to the Board, including an extensive knowledge of sales, customer relationships, and issues affecting small to medium-sized businesses. Mr. Sarvadi’s previous experience starting and operating several small businesses, as well as his frequent interaction with the Company’s clients, provide valuable insight to the challenges facing small to medium-sized businesses, which is a principal focus of the Company.

CEO Compensation
  • Paul's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Paul's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Insperity management team in years:

14.2
Average Tenure
59
Average Age
  • The average tenure for the Insperity management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Sarvadi

TITLE
Co-Founder
COMPENSATION
$7M
AGE
62
TENURE
31.2 yrs

Arthur A. Arizpe

TITLE
President & COO
COMPENSATION
$3M
AGE
61
TENURE
0.8 yrs

Doug Sharp

TITLE
Senior VP of Finance
COMPENSATION
$2M
AGE
57
TENURE
16.6 yrs

Dan Herink

TITLE
Senior VP of Legal
COMPENSATION
$2M
AGE
52
TENURE
11.8 yrs

Jay Mincks

TITLE
Executive Vice President of Sales & Marketing
COMPENSATION
$3M
AGE
65
TENURE
21.2 yrs

Samuel Larson

TITLE
Senior Vice President of Enterprise & Technology Solutions
AGE
57

Suzanne Haugen

TITLE
Public Relations Manager
TENURE
19.6 yrs

Larry Shaffer

TITLE
Senior Vice President of Marketing & Business Development
TENURE
4.3 yrs

JaNette Connell

TITLE
Senior Vice President of Corporate Human Resources
TENURE
1.2 yrs

Gregory Clouse

TITLE
Senior Vice President of Service Operations
Board of Directors Tenure

Average tenure and age of the Insperity board of directors in years:

3.2
Average Tenure
69
Average Age
  • The tenure for the Insperity board of directors is about average.
Board of Directors

Paul Sarvadi

TITLE
Co-Founder
COMPENSATION
$7M
AGE
62
TENURE
34.2 yrs

Carol Kaufman

TITLE
Independent Director
COMPENSATION
$186K
AGE
70
TENURE
6.3 yrs

Tim Clifford

TITLE
Lead Independent Director
COMPENSATION
$198K
AGE
63
TENURE
0.2 yrs

Ellen Masterson

TITLE
Independent Director
COMPENSATION
$183K
AGE
68
TENURE
2.5 yrs

Richard Rawson

TITLE
Director
COMPENSATION
$765K
AGE
70
TENURE
31.2 yrs

Austin Young

TITLE
Independent Director
COMPENSATION
$240K
AGE
79
TENURE
17.2 yrs

John Morphy

TITLE
Independent Director
COMPENSATION
$183K
AGE
71
TENURE
3.8 yrs

Randy Mehl

TITLE
Independent Director
COMPENSATION
$169K
AGE
51
TENURE
2.3 yrs

Latha Ramchand

TITLE
Independent Director
TENURE
0.3 yrs

John Lumelleau

TITLE
Independent Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Insperity individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Feb 20 Sell Jay Mincks Individual 13. Feb 20 13. Feb 20 -1,500 $70.90 $-106,350
14. Nov 19 Sell Jay Mincks Individual 12. Nov 19 12. Nov 19 -3,000 $70.09 $-210,270
07. Nov 19 Buy Ellen Masterson Individual 05. Nov 19 05. Nov 19 100 $70.84 $7,084
29. Aug 19 Buy Timothy Clifford Individual 27. Aug 19 27. Aug 19 2,500 $97.35 $243,375
15. Aug 19 Sell Jay Mincks Individual 13. Aug 19 13. Aug 19 -2,618 $95.00 $-248,710
15. Jul 19 Sell Douglas Sharp Individual 11. Jul 19 11. Jul 19 -5,000 $130.00 $-650,000
12. Jun 19 Sell Austin Young Individual 11. Jun 19 11. Jun 19 -3,000 $120.97 $-362,910
29. May 19 Sell Paul Sarvadi Individual 24. May 19 24. May 19 -10,000 $114.03 $-1,140,300
06. May 19 Sell Douglas Sharp Individual 02. May 19 02. May 19 -6,522 $119.29 $-778,009
06. May 19 Sell Daniel Herink Individual 02. May 19 02. May 19 -5,000 $120.01 $-600,050
02. May 19 Sell Paul Sarvadi Individual 30. Apr 19 01. May 19 -40,000 $120.92 $-4,812,600
X
Management checks
We assess Insperity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Insperity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NSP News

Simply Wall St News

Is Now The Time To Put Insperity (NYSE:NSP) On Your Watchlist?

It's no surprise, then, that I like to invest in companies with EPS growth. … Although Insperity certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

How Does Insperity's (NYSE:NSP) P/E Compare To Its Industry, After The Share Price Drop?

All else being equal, a share price drop should make a stock more attractive to potential investors. … One way to gauge market expectations of a stock is to look at its Price to Earnings Ratio (PE Ratio). … How Does Insperity's Debt Impact Its P/E Ratio?

Simply Wall St -

How Much Are Insperity, Inc. (NYSE:NSP) Insiders Taking Off The Table?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Insperity Insperity Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Director, Richard Rawson, for US$7.0m worth of shares, at about US$125 per share. … NYSE:NSP Recent Insider Trading, August 11th 2019 Insperity Insiders Are Selling The Stock The last quarter saw substantial insider selling of Insperity shares. … Insider Ownership of Insperity For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

How Insperity, Inc. (NYSE:NSP) Could Add Value To Your Portfolio

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. … NYSE:NSP Past and Future Earnings, July 24th 2019 NSP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … NYSE:NSP Historical Debt, July 24th 2019 Next Steps: For Insperity, I've put together three essential aspects you should further research: Valuation: What is NSP worth today?

Simply Wall St -

If You Had Bought Insperity (NYSE:NSP) Stock Five Years Ago, You Could Pocket A 706% Gain Today

Over half a decade, Insperity managed to grow its earnings per share at 48% a year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.

Simply Wall St -

Is Insperity, Inc.'s (NYSE:NSP) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Insperity How Does Paul Sarvadi's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Insperity has changed from year to year.

Simply Wall St -

What Is Insperity, Inc.'s (NYSE:NSP) Share Price Doing?

According to my valuation model, Insperity seems to be fairly priced at around 4.6% above my intrinsic value, which means if you buy Insperity today, you’d be paying a relatively fair price for it. … This is because Insperity’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Have Investors Priced In Insperity, Inc.'s (NYSE:NSP) Growth?

(NYSE:NSP) closed yesterday at $118.59, which left some investors asking whether the high earnings potential can still be justified at this price. … This illustrates that Insperity is overvalued compared to the US market average ratio of 17.45x , and overvalued based on current earnings compared to the Professional Services industry average of 20.66x. … NYSE:NSP Price Estimation Relative to Market, June 7th 2019 We understand NSP seems to be overvalued based on its current earnings, compared to its industry peers.

Simply Wall St -

Estimating The Fair Value Of Insperity, Inc. (NYSE:NSP)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $206.30 $238.39 $257.81 $274.62 $289.40 $302.68 $314.87 $326.34 $337.32 $348.04 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 8.15% Est @ 6.52% Est @ 5.38% Est @ 4.59% Est @ 4.03% Est @ 3.64% Est @ 3.37% Est @ 3.18% Present Value ($, Millions) Discounted @ 8.78% $189.66 $201.47 $200.30 $196.15 $190.03 $182.72 $174.74 $166.49 $158.21 $150.07 Present Value of 10-year Cash Flow (PVCF)= $1.81b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.8%.

Simply Wall St -

Should You Be Tempted To Sell Insperity, Inc. (NYSE:NSP) Because Of Its P/E Ratio?

See our latest analysis for Insperity How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Insperity: P/E of 29.96 = $116.38 ÷ $3.88 (Based on the year to March 2019.) Is A High P/E Ratio Good? … Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth.

Simply Wall St -

NSP Company Info

Description

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. In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; expense management; retirement; and insurance services. The company operates through 82 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 Kingwood, Texas.

Details
Name: Insperity, Inc.
NSP
Exchange: NYSE
Founded: 1986
$1,527,159,037
39,380,068
Website: http://www.insperity.com
Address: Insperity, Inc.
19001 Crescent Springs Drive,
Kingwood,
Texas, 77339,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NSP Common Stock New York Stock Exchange US USD 29. Jan 1997
DB ASF Common Stock Deutsche Boerse AG DE EUR 29. Jan 1997
BRSE ASF Common Stock Berne Stock Exchange CH CHF 29. Jan 1997
Number of employees
Current staff
Staff numbers
3,500
Insperity employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 01:20
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/19
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.