Insperity (NSP) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 3.82%
• Average Volume (3M): 593.84K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.89
• Revenue Growth: 1.90%
• EPS Growth: -60.33%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): 1.57
• Shares Outstanding: 37,626,530
• 10 Day Avg. Volume: 473,152
• 30 Day Avg. Volume: 593,842
• PEG Ratio: -0.69
• Price to Book (P/B): 30.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.11
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 4.55
• 1Y Price Target: $74.33
• Price Target Upside: 21.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: ―

Insperity's overall stock score reflects a cautious outlook. The company faces challenges with profitability and leverage, while technical indicators suggest negative momentum. The high P/E ratio points to possible overvaluation. Despite strong client retention, reduced financial guidance and economic uncertainties weigh on the stock's prospects.

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. (NSP) is a leading provider of human resources and business performance solutions for small and medium-sized businesses. The company operates in the professional employer organization (PEO) sector, offering a range of services including payroll and employment administration, employee benefits, workers' compensation, government compliance, and human capital management. Insperity aims to help businesses run better, grow faster, and make more money by managing HR-related tasks efficiently.

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
	EBIT
77.00M	117.00M	218.55M	250.24M	173.33M	194.69M
	EBITDA
158.00M	198.00M	294.92M	300.29M	214.32M	228.47M
	Net Income Common Stockholders
63.00M	91.00M	171.38M	179.35M	124.08M	138.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
732.12M	1.05B	708.78M	765.90M	607.60M	589.38M
	Total Assets
2.04B	2.60B	2.12B	2.04B	1.75B	1.58B
	Total Debt
421.02M	435.00M	426.89M	424.99M	433.59M	433.69M
	Net Debt
-275.57M	-604.00M	-265.98M	-307.84M	-142.22M	-121.16M
	Total Liabilities
1.91B	2.50B	2.03B	1.96B	1.75B	1.54B
	Stockholders Equity
133.43M	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: 61.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 61.3 is below the 20-day moving average (MA) of 65.39, below the 50-day MA of 71.62, and below the 200-day MA of 79.15, indicating a bearish trend. The MACD of -2.57 indicates Negative momentum. The RSI at 27.69 is Positive, neither overbought nor oversold. The STOCH value of 16.31 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	77 Outperform	$3.62B	15.08	13.92%	2.28%	-3.27%	62.57%
BBSI	75 Outperform	$1.09B	21.66	25.86%	0.76%	8.41%	7.93%
TNET	69 Neutral	$3.96B	24.42	162.14%	1.34%	1.50%	-44.95%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
RHI	62 Neutral	$4.57B	22.35	14.49%	5.03%	-7.81%	-40.22%
MAN	57 Neutral	$1.98B	18.52	5.19%	7.56%	-5.52%	133.51%
NSP	53 Neutral	$2.35B	37.86	48.65%	3.82%	1.90%	-60.33%

Insperity Corporate Events

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.