Insperity (NSP) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: 4.59%
• Average Volume (3M): 632.80K
• Price to Earnings (P/E): 49.9
• Beta (1Y): 1.03
• Revenue Growth: 2.40%
• EPS Growth: -75.66%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 78
• Industry: Staffing & Employment Services
• EPS (TTM): 0.26
• Shares Outstanding: 37,673,680
• 10 Day Avg. Volume: 1,124,726
• 30 Day Avg. Volume: 632,805
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: 13.85
• 1Y Price Target: $56.00
• Price Target Upside: 7.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: $49.00 ▼(-6.27% Downside)

Insperity's overall stock score is primarily impacted by financial performance challenges, including high leverage and declining profitability. Technical indicators confirm bearish trends, while valuation metrics suggest overvaluation. However, strategic moves and positive corporate events offer some optimism for future improvements.

Positive Factors

Product Launch

There is clear optimism over the early 2026 beta launch of HRScale, the company’s joint solution with Workday.

Negative Factors

Earnings Guidance

The second-quarter miss and downward revision to the company’s 2025 adjusted EPS guidance drove shares meaningfully lower.

Financial Performance

Insperity's second-quarter gross profit of $223 million was $16 million below the estimate, dragged down by persistently higher-than-expected benefit costs.

Healthcare Costs

Healthcare costs trended meaningfully higher, coming in $12 million above management’s forecast due to a combination of higher-than-expected pharmacy costs and claims incurred but not yet reported.

Insperity Business Overview & Revenue Model

Company Description

Insperity, Inc. (NSP) is a leading provider of human resources and business performance solutions for small to medium-sized businesses across various sectors. Founded in 1986, the company offers a comprehensive range of services including payroll processing, employee benefits, human capital management, and workforce optimization. Insperity's core mission is to help businesses improve their performance through effective HR solutions and outsourcing, allowing clients to focus on their core operations while managing their workforce efficiently.

How the Company Makes Money

Insperity generates revenue primarily through its Professional Employer Organization (PEO) services, which involve co-employing clients' employees and assuming many HR-related responsibilities. The company charges clients a service fee that typically includes a percentage of payroll and additional fees for services like benefits administration and compliance assistance. Key revenue streams also include payroll processing, employee benefits administration, and HR consulting services. Insperity has established significant partnerships with various insurance providers and technology platforms, enhancing its service offerings and contributing to its earnings. Additionally, the company benefits from economies of scale as it expands its client base, allowing it to negotiate better rates for employee benefits, which further drives profitability.

Insperity Financial Statement Overview

Summary

Insperity's financial performance is under pressure with declining profit margins and inconsistent revenue growth. The balance sheet is highly leveraged, posing risks if revenue and profitability do not improve. However, positive free cash flow generation is a key strength, albeit at reduced levels.

Income Statement

Insperity has shown a mixed performance in its income statement metrics. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 20%, indicating efficient cost management relative to revenue. However, the net profit margin has declined from previous years, with TTM standing at about 1.24%, compared to 1.38% in 2024 and 2.64% in 2023. Revenue growth has been inconsistent, with a decrease in TTM compared to 2024. EBIT and EBITDA margins have also seen a downturn, highlighting pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a relatively high debt-to-equity ratio due to low stockholders' equity. TTM shows a debt-to-equity ratio of approximately 3.66, indicating significant leverage. Return on equity is positive, but the low equity base inflates these figures, with TTM ROE around 52.94%. The equity ratio is weak, standing at about 5.56% for TTM, suggesting limited asset protection by equity.

Cash Flow

Cash flow analysis reveals some concerns and strengths. TTM free cash flow has significantly decreased compared to previous periods, posing a challenge for liquidity. The operating cash flow to net income ratio for TTM is 0.73, indicating that net income is not fully translating into cash flow. However, the company maintained positive free cash flow, albeit reduced, which is crucial for ongoing operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	6.58B	6.49B	5.94B	4.97B	4.29B
Gross Profit	1.02B	1.05B	1.04B	1.01B	820.10M	806.85M
EBITDA	158.00M	198.00M	294.92M	300.29M	214.32M	228.47M
Net Income	63.00M	91.00M	171.38M	179.35M	124.08M	138.24M
Balance Sheet
Total Assets	2.14B	2.60B	2.12B	2.04B	1.75B	1.58B
Cash, Cash Equivalents and Short-Term Investments	568.00M	1.05B	708.78M	765.90M	607.60M	589.38M
Total Debt	436.00M	435.00M	426.89M	424.99M	433.59M	433.69M
Total Liabilities	2.02B	2.50B	2.03B	1.96B	1.75B	1.54B
Stockholders Equity	119.00M	97.00M	93.62M	81.28M	-1.77M	44.13M
Cash Flow
Free Cash Flow	7.00M	482.00M	158.37M	317.36M	227.25M	248.19M
Operating Cash Flow	46.00M	520.00M	198.49M	347.69M	260.15M	346.35M
Investing Cash Flow	-39.00M	-38.00M	-21.73M	-32.12M	-31.01M	-98.62M
Financing Cash Flow	-139.00M	-173.00M	-155.01M	-141.15M	-208.07M	-53.58M

Insperity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Negative. The current price of 52.28 is below the 20-day moving average (MA) of 54.74, below the 50-day MA of 58.00, and below the 200-day MA of 72.72, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSP.

Insperity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	76 Outperform	$3.80B	15.93	13.49%	2.35%	-1.23%	44.06%
BBSI	73 Outperform	$1.20B	22.97	25.36%	0.70%	9.48%	11.62%
TNET	68 Neutral	$3.21B	22.53	139.13%	1.59%	1.39%	-50.47%
Sector *	63 Neutral	€15.32B	19.86	1.57%	3.12%	4.81%	5.42%
RHI	61 Neutral	$3.69B	20.71	12.75%	6.17%	-6.95%	-41.84%
MAN	58 Neutral	$1.91B	18.36	-0.78%	5.48%	-3.79%	-138.56%
NSP	54 Neutral	$1.97B	49.91	31.50%	4.59%	2.40%	-75.66%

Insperity Corporate Events

Insperity Reports Q2 2025 Results with Revenue Growth

On August 1, 2025, Insperity reported its second-quarter results for 2025, revealing a 3% increase in revenues to $1.7 billion despite a net loss of $5 million. The company experienced a 14% decrease in gross profit due to higher benefits costs, but maintained a positive outlook for future growth, highlighting its strategic partnership with Workday and plans for accelerated growth in 2026. Insperity’s average paid worksite employees increased by 1% year-over-year, and the company returned $64 million to shareholders through share repurchases and dividends in the first half of 2025.

The most recent analyst rating on (NSP) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.

Insperity Approves Performance-Based Awards for Executives

On June 30, 2025, Insperity‘s Board of Directors approved special performance-based equity awards for its CEO, Paul J. Sarvadi, and COO, A. Steve Arizpe, to align with the company’s pay-for-performance philosophy and incentivize long-term stockholder value. These awards are tied to significant stock price appreciation and are part of a strategy to retain key executives during a transformative phase, which includes launching a joint HR solution with Workday, aimed at expanding Insperity’s market reach and enhancing growth and profitability.

The most recent analyst rating on (NSP) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.

Insperity Holds 2025 Annual Meeting in Kingwood

On May 20, 2025, Insperity held its 2025 Annual Meeting at its corporate headquarters in Kingwood, Texas. The meeting included the election of Class III directors, approval of executive compensation, an amendment to the incentive plan, and the ratification of Ernst & Young LLP as the independent accounting firm for 2025, reflecting shareholder support for the company’s strategic and operational decisions.

The most recent analyst rating on (NSP) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.