Insperity (NSP) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 3.89%
• Average Volume (3M): 494.38K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.91
• Revenue Growth: 1.90%
• EPS Growth: -60.33%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 1.57
• Shares Outstanding: 37,626,530
• 10 Day Avg. Volume: 545,348
• 30 Day Avg. Volume: 494,385
• PEG Ratio: 0.52
• Price to Book (P/B): 53.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.64
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 4.55
• 1Y Price Target: $74.33
• Price Target Upside: 21.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $64.00 ▲(4.30%Upside)

The overall stock score reflects financial challenges, including high leverage and reduced profit margins. Technical indicators signal bearish momentum, while valuation suggests potential overvaluation. Earnings call sentiment was mixed, with positive client retention offset by cost concerns.

Positive Factors

Negative Factors

Hiring Trends

Insperity has encountered the dual headwinds of softer SMB hiring and normalization from pandemic pull-forward of growth.

Investment Uncertainty

The $150M Workday investment presents new uncertainty in the model, and analysts argue the payback period may occur outside the medium-term investment horizon.

Medical Costs

Elevated medical cost trend in 2025 could spur pricing sensitivity, which presents lower margin for error.

Insperity Business Overview & Revenue Model

Company 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 that 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; personnel record 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; retirement; and insurance services. As of December 31, 2021, it operated through 85 sales offices in the United States. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. The company was founded in 1986 and is headquartered in Kingwood, Texas.

How the Company Makes Money

Insperity makes money primarily through its comprehensive suite of HR services offered to small and medium-sized businesses. The company generates revenue by charging service fees to its clients, typically on a per-employee basis. These fees cover a range of services including payroll processing, benefits administration, and compliance support. A significant portion of Insperity's revenue is also derived from insurance-related activities, where it earns margins on premiums for health and workers' compensation insurance plans provided to clients. Additionally, Insperity benefits from economies of scale and strategic partnerships with insurance carriers and other vendors, allowing it to offer competitive pricing and maintain profitability.

Insperity Financial Statement Overview

Summary

Insperity's financial performance is mixed. Profitability is under pressure with declining margins and inconsistent revenue growth. The balance sheet is highly leveraged, posing potential risks. However, positive free cash flow is a bright spot, despite being reduced.

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: Neutral
• Last Price: 61.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Neutral. The current price of 61.36 is above the 20-day moving average (MA) of 60.86, below the 50-day MA of 64.97, and below the 200-day MA of 77.09, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NSP.

Insperity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	78 Outperform	$3.84B	16.08	13.49%	2.57%	-1.23%	44.06%
BBSI	77 Outperform	$1.10B	21.91	25.86%	0.75%	8.41%	7.93%
TNET	63 Neutral	$3.60B	22.19	162.14%	1.49%	1.50%	-44.95%
RHI	61 Neutral	$4.38B	21.40	14.49%	5.48%	-7.81%	-40.22%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
NSP	57 Neutral	$2.31B	37.12	48.65%	3.89%	1.90%	-60.33%
MAN	57 Neutral	$2.05B	19.20	5.19%	3.27%	-5.52%	133.51%

Insperity Corporate Events

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.