Insperity (NSP) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: 7.04%
• Average Volume (3M): 713.47K
• Price to Earnings (P/E): 77.1
• Beta (1Y): 1.07
• Revenue Growth: 3.19%
• EPS Growth: -86.21%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.20
• Shares Outstanding: 37,704,150
• 10 Day Avg. Volume: 1,142,686
• 30 Day Avg. Volume: 713,472
• PEG Ratio: -0.69
• Price to Book (P/B): 30.36
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 6.11
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 18.23
• 1Y Price Target: $47.67
• Price Target Upside: 40.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.11
• Revenue Forecast (FY): $6.85B

• Rating: 47 Neutral
• Price Target: $36.00 ▲(6.32% Upside)

Insperity's overall stock score is primarily affected by its financial performance and technical analysis. The company shows strong revenue growth but faces profitability and leverage challenges. Technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation despite a strong dividend yield. The earnings call provided mixed signals, with strategic initiatives overshadowed by financial difficulties.

Positive Factors

Strategic Partnership

The partnership with Workday and the launch of Insperity HRScale positions the company for future growth by enhancing service offerings and market differentiation.

Client Retention

High client retention rates indicate strong customer satisfaction and loyalty, which are crucial for sustained revenue and market position.

Revenue Growth

Strong revenue growth reflects the company's ability to expand its client base and increase service adoption, supporting long-term business expansion.

Negative Factors

Profitability Margins

Declining profitability margins suggest operational challenges and cost pressures, which could impact long-term financial health if not addressed.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Higher Benefits Costs

Unexpectedly high benefits costs can strain profitability and may require strategic adjustments to maintain financial performance.

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 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 shows strong revenue growth but is hampered by declining profitability margins and high leverage. The income statement reflects growth potential, but the balance sheet's high debt-to-equity ratio and declining ROE are concerning. Cash flow performance is mixed, with strong cash generation but declining growth.

Income Statement

Insperity's income statement shows moderate performance with a consistent revenue growth trend, highlighted by a significant 92.6% increase in the TTM period. However, profitability margins such as gross profit and net profit margins have declined in the TTM compared to previous years, indicating pressure on profitability. The EBIT and EBITDA margins have also decreased, suggesting operational challenges. Overall, the company demonstrates growth potential but faces profitability constraints.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk to financial stability. The return on equity has decreased substantially in the TTM period, reflecting reduced profitability relative to equity. The equity ratio is low, suggesting a heavy reliance on debt financing. While the company has managed to maintain asset levels, the high leverage and declining ROE are concerning.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth in the TTM period, which is a negative indicator. However, the free cash flow to net income ratio remains strong, suggesting efficient cash generation relative to net income. The operating cash flow to net income ratio is negative in the TTM, indicating potential cash flow management issues. Overall, cash flow performance is mixed, with strengths in cash generation but weaknesses in growth and cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.76B	6.58B	6.49B	5.94B	4.97B	4.29B
Gross Profit	935.00M	1.05B	1.04B	1.01B	820.10M	806.85M
EBITDA	98.00M	198.00M	295.00M	300.29M	214.32M	228.47M
Net Income	17.00M	91.00M	171.00M	179.35M	124.08M	138.24M
Balance Sheet
Total Assets	2.01B	2.60B	2.12B	2.04B	1.75B	1.58B
Cash, Cash Equivalents and Short-Term Investments	519.00M	1.05B	709.00M	765.90M	607.60M	589.38M
Total Debt	436.00M	435.00M	427.00M	424.99M	433.59M	433.69M
Total Liabilities	1.93B	2.50B	2.03B	1.96B	1.75B	1.54B
Stockholders Equity	87.00M	97.00M	94.00M	81.28M	-1.77M	44.13M
Cash Flow
Free Cash Flow	51.00M	482.00M	158.37M	317.36M	227.25M	248.19M
Operating Cash Flow	86.00M	520.00M	198.49M	347.69M	260.15M	346.35M
Investing Cash Flow	-35.00M	-38.00M	-21.73M	-32.12M	-31.01M	-98.62M
Financing Cash Flow	-111.00M	-173.00M	-155.01M	-141.15M	-208.07M	-53.58M

Insperity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 33.86 is below the 20-day moving average (MA) of 43.83, below the 50-day MA of 48.14, and below the 200-day MA of 63.97, indicating a bearish trend. The MACD of -3.44 indicates Positive momentum. The RSI at 19.71 is Positive, neither overbought nor oversold. The STOCH value of 12.17 is Positive, 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	71 Outperform	$3.40B	13.81	13.55%	2.81%	0.79%	34.85%
BBSI	65 Neutral	$1.03B	19.80	24.08%	0.92%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.63B	16.89	11.27%	8.66%	-7.27%	-43.88%
TNET	60 Neutral	$2.79B	21.19	111.30%	1.93%	0.99%	-47.02%
NSP	47 Neutral	$1.28B	77.05	16.04%	7.04%	3.19%	-86.21%
MAN	46 Neutral	$1.38B	―	-1.00%	7.87%	-2.44%	-156.01%

Insperity Corporate Events

Insperity Earnings Call: Mixed Results Amid Challenges

The recent earnings call for Insperity painted a mixed picture, with notable achievements being overshadowed by financial challenges. The company celebrated strong client retention, the rollout of HRScale, and strategic partnerships. However, these positives were tempered by unexpected health benefits costs and an earnings shortfall, contributing to a generally negative outlook.

Insperity Reports Q3 Results and Strategic Moves

Insperity, Inc. is a prominent provider of human resources and business performance solutions, offering comprehensive HR services and technology to enhance business performance across the United States.

Insperity Extends UnitedHealthcare Contract Through 2028

On November 3, 2025, Insperity announced an amendment to its arrangement with UnitedHealthcare, extending the contract through 2028 and introducing cost-saving measures starting in 2026. This strategic move is expected to enhance Insperity’s financial outlook and align with its growth and profitability goals. Additionally, Insperity reported its third-quarter results, highlighting a 4% revenue increase despite a net loss of $20 million due to elevated healthcare costs. The company is actively working on sustainable profitability and has launched HRScale, a joint solution with Workday, to strengthen its market position.

The most recent analyst rating on (NSP) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.