Insperity (NSP) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: 4.87%
• Average Volume (3M): 541.15K
• Price to Earnings (P/E): 48.6
• Beta (1Y): 1.03
• Revenue Growth: 2.40%
• EPS Growth: -75.66%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.26
• Shares Outstanding: 37,673,680
• 10 Day Avg. Volume: 609,113
• 30 Day Avg. Volume: 541,153
• 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: 1.14
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 17.37
• 1Y Price Target: $58.33
• Price Target Upside: 17.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: $54.00 ▲(9.22% Upside)

Insperity's overall stock score is driven by financial challenges, including high leverage and declining margins, and a bearish technical outlook. While strategic initiatives and partnerships offer future growth potential, current valuation concerns and recent earnings misses weigh heavily on the score.

Positive Factors

Strategic Partnerships

The partnership with Workday is expected to enhance service offerings and drive growth, positioning Insperity for long-term success in HR solutions.

Revenue Growth

Consistent revenue growth indicates robust demand for Insperity's services, supporting its market position and potential for future expansion.

Client Retention

High client retention rates reflect strong customer satisfaction and loyalty, which are crucial for sustaining revenue and competitive advantage.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Insperity's ability to invest in growth opportunities.

Declining Margins

Decreasing margins suggest challenges in cost management, which could affect profitability and operational efficiency over time.

Cash Flow Challenges

Deteriorating cash flow indicates potential liquidity issues, which could hinder Insperity's ability to fund operations and strategic initiatives.

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 shows strong revenue growth, but profitability and cash flow metrics are concerning. High leverage and declining margins indicate potential financial instability and operational inefficiency.

Income Statement

Insperity's revenue has shown consistent growth over the years, with a notable increase in the TTM period. However, margins have been under pressure, with a decline in gross and net profit margins in the latest TTM data compared to previous years. The EBIT and EBITDA margins have also decreased, indicating challenges in maintaining operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, which poses a risk in terms of financial leverage. Although there has been some improvement in stockholders' equity, the overall equity ratio remains low. Return on equity has decreased significantly, indicating reduced profitability from shareholders' investments.

Cash Flow

Insperity's cash flow situation has deteriorated, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is unfavorable, highlighting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.70B	6.58B	6.49B	5.94B	4.97B	4.29B
Gross Profit	980.00M	1.05B	1.04B	1.01B	820.10M	806.85M
EBITDA	126.00M	198.00M	294.92M	300.29M	214.32M	228.47M
Net Income	40.00M	91.00M	171.38M	179.35M	124.08M	138.24M
Balance Sheet
Total Assets	2.02B	2.60B	2.12B	2.04B	1.75B	1.58B
Cash, Cash Equivalents and Short-Term Investments	456.00M	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	1.91B	2.50B	2.03B	1.96B	1.75B	1.54B
Stockholders Equity	112.00M	97.00M	93.62M	81.28M	-1.77M	44.13M
Cash Flow
Free Cash Flow	-93.00M	482.00M	158.37M	317.36M	227.25M	248.19M
Operating Cash Flow	-53.00M	520.00M	198.49M	347.69M	260.15M	346.35M
Investing Cash Flow	-38.00M	-38.00M	-21.73M	-32.12M	-31.01M	-98.62M
Financing Cash Flow	-124.00M	-173.00M	-155.01M	-141.15M	-208.07M	-53.58M

Insperity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 49.44 is below the 20-day moving average (MA) of 52.31, below the 50-day MA of 53.39, and below the 200-day MA of 68.60, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.85 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	68 Neutral	3.69B	14.99	13.22%	2.57%	0.79%	34.85%
BBSI	66 Neutral	1.15B	21.65	23.85%	0.72%	9.48%	11.62%
RHI	64 Neutral	3.46B	19.13	13.57%	6.76%	-6.95%	-41.84%
TNET	59 Neutral	3.28B	22.37	134.58%	1.55%	1.39%	-50.47%
MAN	54 Neutral	1.79B	-101.85	-0.81%	5.86%	-3.79%	-138.56%
NSP	49 Neutral	$1.92B	48.56	31.50%	4.87%	2.40%	-75.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.

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.