Insperity (NSP) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 6.22%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 87.3
• Beta (1Y): 1.00
• 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: 1,692,121
• 30 Day Avg. Volume: 1,097,429
• 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: 1.23
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 18.23
• 1Y Price Target: $53.00
• Price Target Upside: 37.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.11
• Revenue Forecast (FY): $6.85B

• Rating: 54 Neutral
• Price Target: $40.00 ▲(3.60% Upside)

Insperity's overall stock score reflects a company with strong revenue growth but facing significant challenges in profitability and leverage. Technical analysis suggests mixed momentum, while valuation concerns arise from a high P/E ratio. The earnings call underscores financial struggles, particularly due to health benefits costs, impacting the outlook. Despite these challenges, the company's strategic initiatives and partnerships offer potential for future growth.

Positive Factors

Strategic Partnerships

The partnership with Workday and HRScale rollout targets mid-market companies, potentially expanding Insperity's market reach and client base.

Financial Flexibility

The expanded credit facility enhances Insperity's financial flexibility, supporting operational capacity and potential growth initiatives.

Client Retention

High client retention indicates strong customer satisfaction and loyalty, providing a stable revenue base and reducing churn risk.

Negative Factors

Profitability Challenges

Reduced profitability and high leverage pose risks to financial stability, limiting reinvestment and growth opportunities.

Healthcare Costs

Rising healthcare costs impact profitability, requiring strategic adjustments to maintain margins and financial health.

Challenging Hiring Environment

A tough hiring environment may hinder Insperity's ability to scale operations and meet client demands, affecting growth.

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, where it acts as a co-employer for its clients. The company charges a fee based on a percentage of the client's payroll, which includes various services such as payroll processing, benefits administration, and compliance management. Additionally, Insperity earns revenue from its HR software solutions and consulting services, which can be offered on a subscription basis or as one-time fees. Key revenue streams include the fees from PEO services, HR software subscriptions, and consulting projects. Insperity's growth is also bolstered by strategic partnerships with various service providers in areas like insurance and employment services, allowing it to enhance its offerings and attract more clients.

Insperity Financial Statement Overview

Summary

Insperity's financial performance shows strong revenue growth but declining profitability margins and high leverage. The income statement indicates growth potential, but the balance sheet and cash flow statements reveal financial stability concerns due to high debt and mixed cash flow performance.

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: 38.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 38.61 is above the 20-day moving average (MA) of 36.12, above the 50-day MA of 38.38, and below the 200-day MA of 56.55, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 88.61 is Negative, 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	73 Outperform	$3.56B	13.85	13.89%	2.81%	3.65%	5.71%
BBSI	66 Neutral	$935.55M	17.53	24.08%	0.88%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.83B	18.13	11.27%	8.45%	-7.27%	-43.88%
TNET	58 Neutral	$2.80B	21.28	111.30%	1.81%	0.99%	-47.02%
NSP	54 Neutral	$1.46B	87.29	16.04%	6.22%	3.19%	-86.21%
MAN	54 Neutral	$1.38B	-63.65	-1.00%	4.82%	-2.44%	-156.01%

Insperity Corporate Events

Insperity Expands Credit Facility with Amegy Bank

On December 15, 2025, Insperity, Inc. announced an Eighth Amendment to its Amended and Restated Credit Agreement with Zions Bancorporation, N.A. dba Amegy Bank and other lenders. This amendment increases the borrowing capacity under its revolving credit facility from $650 million to $750 million, with a potential increase to $800 million, extends the maturity date to December 15, 2028, and adjusts financial covenants, potentially enhancing Insperity’s financial flexibility and operational capacity.

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.