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Insperity
(NYSE:NSP)
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Rating:52Neutral
Price Target:
$42.00
▲(45.33% Upside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weakened financial performance—recent losses, margin compression, and balance-sheet leverage risk—despite a rebound to positive TTM cash flow. Technicals are a key offset, with the stock in an uptrend and momentum indicators supportive. Valuation is mixed due to a negative P/E, partially cushioned by a high dividend yield, while the latest earnings call suggests improving profitability execution but slower unit growth and near-term demand/retention headwinds.
Positive Factors
Recurring PEO Business Model
Insperity's PEO/co-employment model creates recurring, payroll‑linked fee streams and embeds the company into clients' HR operations. That structural stickiness supports predictable revenue and client switching costs, helping stabilize cash flow over multi‑quarter horizons despite cyclical SMB hiring.
Negative Factors
Elevated Leverage
Very high debt relative to a small equity base materially reduces financial flexibility and amplifies earnings and equity volatility. In adverse economic or credit conditions this leverage constrains investment, increases refinancing and interest risk, and limits the firm's ability to maneuver on pricing or client retention.
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Positive Factors
Negative Factors
Recurring PEO Business Model
Insperity's PEO/co-employment model creates recurring, payroll‑linked fee streams and embeds the company into clients' HR operations. That structural stickiness supports predictable revenue and client switching costs, helping stabilize cash flow over multi‑quarter horizons despite cyclical SMB hiring.
Read all positive factors
Insperity Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where Insperity earns sales across regions, highlighting geographic strengths and concentration risk. Regional trends reveal growth opportunities, exposure to local economic cycles or regulatory changes, and where the company’s sales and marketing efforts are most effective.
Breaks down where Insperity earns sales across regions, highlighting geographic strengths and concentration risk. Regional trends reveal growth opportunities, exposure to local economic cycles or regulatory changes, and where the company’s sales and marketing efforts are most effective.
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The Fly
The FlyInsperity (NSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend Yield6.37%
Average Volume (3M)716.13K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth3.04%
EPS Growth-140.22%
CountryUS
Employees306,023
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.67
Shares Outstanding38,169,180
10 Day Avg. Volume916,615
30 Day Avg. Volume716,134
Financial Highlights & Ratios
PEG Ratio2.00
Price to Book (P/B)31.99
Price to Sales (P/S)0.22
P/FCF Ratio-4.76
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda23.47
Forecast
1Y Price Target
$43.50Price Target Upside50.52% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.05
Revenue Forecast (FY)$6.96B
Insperity Business Overview & Revenue Model
Company Description
Insperity, Inc. (NSP) delivers comprehensive human resources and business solutions primarily designed to enhance the operational efficiency and performance of small and medium-sized enterprises. The company's core HR services are provided through...
How the Company Makes Money
Insperity generates revenue mainly by providing HR and workforce administration services that bundle payroll, benefits, and HR support for client workforces. Its primary model is a professional employer organization (PEO) / co-employment arrangeme...
Insperity Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call portrayed a company in recovery: solid early progress on margin restoration (improved gross profit trends, controlled operating expenses, improved benefit-cost dynamics) and a promising HRScale rollout and AI strategy that can drive medium-term growth. Offsetting these positives are near-term headwinds—declining worksite employee counts, lower new-sales activity, elevated attrition tied to margin actions, a significant Q1 tax-related EPS hit and seasonal cash pressure. Management maintained full-year adjusted EBITDA guidance but lowered unit guidance, signaling confidence in profitability recovery while acknowledging slower top-line momentum.Positive Updates
Adjusted EBITDA and EPS Beat Midpoint
Adjusted EPS of $1.31 and adjusted EBITDA of $103 million in Q1 2026 both exceeded the midpoint of guidance; adjusted EBITDA was up 1% versus $102M in Q1 2025.
Negative Updates
Worksite Employee Base Contraction
Average paid worksite employees were 303,049 in Q1 2026, a 1.0% decrease versus Q1 2025; full-year WSE guidance downgraded to 303,000–307,000 (a decline of 1.0%–2.3% vs 2025) and Q2 WSE expected down 1.5%–2.1% YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA and EPS Beat Midpoint
Adjusted EPS of $1.31 and adjusted EBITDA of $103 million in Q1 2026 both exceeded the midpoint of guidance; adjusted EBITDA was up 1% versus $102M in Q1 2025.
Read all positive updates
Company Guidance
Insperity reiterated full‑year adjusted EBITDA guidance of $170M–$230M while trimming unit guidance to 303,000–307,000 average paid worksite employees for 2026 (a 1.0%–2.3% decline vs. 2025) and guiding Q2 WSEs to 302,500–304,500 (down 1.5%–2.1% yoy); full‑year adjusted EPS is $1.60–$2.60 (Q2 $0.02–$0.50) with a FY adjusted tax rate of ~36% and ~38.5M weighted average shares outstanding. In Q1 the company reported adjusted EPS of $1.31 and adjusted EBITDA of $103M, average paid WSEs of 303,049 (‑1.0% vs. Q1 2025), total gross profit of $302M (‑3%), gross profit per WSE of $332/month, benefit cost per covered employee +5% yr/yr (improved from ~9% last year), operating expenses $240M (‑1%; ‑5% ex $9M restructuring), $13M invested in HRScale in Q1 ($8M opex, $5M capex), $36M adjusted cash, $23M dividends paid, 171k shares repurchased for $4M, and ~$380M unused credit capacity (~$330M available); management expects a flatter quarterly earnings pattern due to UnitedHealthcare pooling change ($1M→$500k).Insperity Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
27
Negative
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.84B | 6.81B | 6.58B | 6.49B | 5.94B | 4.97B |
| Gross Profit | 881.00M | 900.00M | 1.05B | 1.04B | 1.01B | 820.10M |
| EBITDA | 56.00M | 65.00M | 198.00M | 295.00M | 300.29M | 214.32M |
| Net Income | -25.00M | -7.00M | 91.00M | 171.00M | 179.35M | 124.08M |
Balance Sheet | ||||||
| Total Assets | 2.20B | 2.20B | 2.60B | 2.12B | 2.04B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 555.00M | 660.00M | 1.05B | 709.00M | 765.90M | 607.60M |
| Total Debt | 430.00M | 435.00M | 435.00M | 427.00M | 424.99M | 433.59M |
| Total Liabilities | 2.13B | 2.16B | 2.50B | 2.03B | 1.96B | 1.75B |
| Stockholders Equity | 67.00M | 46.00M | 97.00M | 94.00M | 81.28M | -1.77M |
Cash Flow | ||||||
| Free Cash Flow | 67.00M | -309.00M | 482.00M | 158.37M | 317.36M | 227.25M |
| Operating Cash Flow | 98.00M | -278.00M | 520.00M | 198.49M | 347.69M | 260.15M |
| Investing Cash Flow | -31.00M | -31.00M | -38.00M | -21.73M | -32.12M | -31.01M |
| Financing Cash Flow | -87.00M | -90.00M | -173.00M | -155.01M | -141.15M | -208.07M |
Insperity Technical Analysis
Positive
28.90
Price Trends
34.22
Positive
29.44
Positive
34.57
Positive
Market Momentum
2.74
Negative
71.06
Negative
90.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Positive. The current price of 28.9 is below the 20-day moving average (MA) of 37.96, below the 50-day MA of 34.22, and below the 200-day MA of 34.57, indicating a bullish trend. The MACD of 2.74 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 90.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSP.
Insperity Risk Analysis
Insperity disclosed 1 risk factors in its most recent earnings report. Insperity reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Insperity Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.71B | 13.73 | 13.94% | 2.89% | 6.43% | 13.64% | |
69 Neutral | $931.06M | 23.99 | 17.82% | 0.88% | 7.12% | -21.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.54B | 16.48 | 179.66% | 1.81% | -1.40% | -0.67% | |
55 Neutral | $3.42B | 25.75 | 10.14% | 8.65% | -6.08% | -35.51% | |
54 Neutral | $1.80B | -110.83 | -0.81% | 4.96% | 4.77% | -115.03% | |
52 Neutral | $1.38B | ― | -32.05% | 6.37% | 3.04% | -140.22% |
* Industrials Sector Average
NSP
Insperity
45.37
-10.59
-18.93%
BBSI
Barrett Business Services
37.91
-4.19
-9.96%
KFY
Korn Ferry
69.68
-2.06
-2.88%
MAN
ManpowerGroup
38.79
-2.14
-5.23%
RHI
Robert Half
33.48
-4.33
-11.46%
TNET
TriNet Group
55.21
-14.85
-21.20%
Insperity Corporate Events
Executive/Board ChangesShareholder Meetings
Insperity Shareholders Approve Directors, Pay and Incentive Plan
Positive
May 20, 2026
On May 18, 2026, Insperity held its 2026 annual stockholders meeting at its headquarters in Kingwood, Texas, where shareholders re-elected four Class I directors—Timothy T. Clifford, Ellen H. Masterson, Latha Ramchand and W. Philip Wilmingto...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.