Insperity, Inc. (NSP) stock analysis

P/E above its 5-year median

Insperity's P/E of 556.4 is above its own 5-year median of 28.0.

P/E above the industry

Insperity's P/E of 556.4 is above the Personnel Supply Services median of 22.6.

EV/EBITDA above its 5-year median

Insperity's EV/EBITDA of 27.4 is above its 5-year median of 15.8.

P/B above the industry

Insperity's price-to-book of 43.36 is above the Personnel Supply Services median of 1.99.

Trading above fair value

The share price of $50.08 is above our fair value estimate of $25.07.

Margin of safety under 20%

The price is 99.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 2.1% over the last twelve months; the Personnel Supply Services median is 2.1%.

Guidance raised

Insperity raised its Q3 2026 Stock-based compensation outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 13.0% over the last twelve months, against 14.0% a year earlier.

Return on equity under 15%

Return on equity was 4.6% over the last twelve months and averaged 265% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Insperity's return on equity of 4.6% is below the Personnel Supply Services median of 4.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 0.0% over the last twelve months, against a 5-year average of 1.9%.

Net margin above the industry

Insperity's net margin of 0.0% is above the Personnel Supply Services median of -0.0%.

High debt

Debt is 952% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 837% five years ago to 952%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 55.4% of total debt.

Interest not well covered

Operating income covers interest expense 0.8 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.11 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.13; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Insperity paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Insperity yields 4.8%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 3033% of net income, leaving little room.

Covered by free cash flow

Dividends take 46.2% of free cash flow.