One-glance verdict
Undervalued
$364.27 our estimate vs market $51.38
Wall Street consensus: $51.75 (-85.8% lower than our fair-value estimate)
86% below our estimate, below the bear case
Fundamentals snapshot
Insperity, Inc.
NSP · NYQ · Industrials · Staffing & Employment Services
Current price
$51.38
52-week range
$18.57 - $55.90
Market cap
$1.96B
Balance sheet
Healthy
-0.42x Concerning
Net cash $141.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.9% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -18.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 6.2% (peer median: 10.2%).
What this company does
Insperity, Inc.
Insperity acts as an outsourced Human Resources (HR) department for small and medium-sized businesses, handling tasks like payroll, employee benefits, and workplace compliance. The company makes its money by charging clients a fee for each employee it manages, which is important because this creates a steady and predictable income stream. This business model relies on recurring revenue (income that comes in regularly from ongoing services), as client companies pay Insperity month after month to handle their essential HR needs.
How the company got here
Insperity was founded in 1986 as Administaff by Paul J. Sarvadi to help small and medium-sized businesses manage their human resources tasks. A key moment was in 1997 when the company went public on the New York Stock Exchange, which provided the money to grow nationwide. In 2011, the company changed its name from Administaff to Insperity to reflect its broader focus on overall business performance, not just administrative tasks. This rebranding signaled a shift towards offering a more comprehensive set of services to help businesses succeed.
What it actually does
Insperity acts as an outsourced human resources (HR) department for small and medium-sized businesses. Think of all the paperwork and tasks that come with having employees: running payroll (calculating and issuing paychecks), managing employee benefits like health insurance and retirement plans, and making sure the business follows employment laws. Insperity handles these complexities, allowing the business owners to focus on their actual products or services instead of HR administration. They offer these services primarily in the United States.
Professional Employer Organization (PEO) Solutions
This is Insperity's main business, where they enter into a co-employment agreement with a client company. This means Insperity becomes the official employer for that company's workers for administrative purposes, like payroll, taxes, and benefits. The client company still controls the employees' daily tasks and business operations. This bundled service, often called Workforce Optimization, is how Insperity generates the vast majority of its revenue (the money it brings in from sales).
Human Capital Management (HCM) and Other Services
For businesses that don't need the full co-employment model, Insperity offers specific HR services separately. This can include just payroll processing, benefits administration, or recruiting services to help find new employees. These offerings provide flexibility for clients who may only need help with certain parts of their HR. This part of the business is smaller but serves as a way to introduce clients to Insperity's broader range of solutions.
What management is betting on now
Insperity is focused on growing the number of employees it manages for its clients, which they call 'worksite employees'. A major new initiative is a partnership with a technology company called Workday to offer a solution named HRScale, aimed at attracting larger, mid-market businesses. They are also working to manage rising healthcare costs, which affects their profitability, by adjusting their pricing and health plan designs. The company is also investing in artificial intelligence (AI) tools to make their own operations more efficient and improve customer service.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-164.00M
FY2024 Q4
$606.00M
FY2025 Q1
$-449.00M
FY2025 Q2
$-86.00M
FY2025 Q3
$-20.00M
FY2025 Q4
$246.00M
FY2026 Q1
$-73.00M
FY2026 Q2
$41.00M
Revenue
$1.69B
Net income
$4.00M
Diluted EPS
0.10
Operating cash flow
$48.00M
Free cash flow
$41.00M
Fetching…
Sources
Revenue
$1.90B
Net income
$33.00M
Diluted EPS
0.88
Operating cash flow
$-67.00M
Free cash flow
$-73.00M
Fetching…
Sources
Revenue
$1.67B
Net income
$-33.00M
Diluted EPS
-0.87
Operating cash flow
$255.00M
Free cash flow
$246.00M
Fetching…
Sources
Revenue
$1.62B
Net income
$-20.00M
Diluted EPS
-0.53
Operating cash flow
$-11.00M
Free cash flow
$-20.00M
Fetching…
Sources
Revenue
$1.66B
Net income
$-5.00M
Diluted EPS
-0.14
Operating cash flow
$-79.00M
Free cash flow
$-86.00M
Fetching…
Sources
Revenue
$1.86B
Net income
$51.00M
Diluted EPS
1.35
Operating cash flow
$-443.00M
Free cash flow
$-449.00M
Fetching…
Sources
Revenue
$1.61B
Net income
$-9.00M
Diluted EPS
-0.21
Operating cash flow
$619.00M
Free cash flow
$606.00M
Fetching…
Sources
Revenue
$1.56B
Net income
$3.00M
Diluted EPS
0.07
Operating cash flow
$-150.00M
Free cash flow
$-164.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $364.27 vs current price $51.38
Wall Street consensus is the average analyst price target: $51.75 (-85.8% lower than our fair-value estimate).
Our most-likely fair value is $364.27 a share — about 609.0% above today's price of $51.38, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $141.0M - more cash than debt. Interest coverage -0.4x.
Net debt
$-141.00M
Interest coverage
-0.42x
Insperity, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
NSP
BASELINE
Insperity, Inc.
Total debt $478.00M Interest coverage -0.42x This is the baseline the peer rows are being compared against.
Total debt $950.00M Interest coverage 4.88x This peer still has a real interest-payment cushion, while NSP does not.
Total debt $4.62B Interest coverage 9.32x This peer still has a real interest-payment cushion, while NSP does not.
Total debt $5.51B Interest coverage 12.58x This peer still has a real interest-payment cushion, while NSP does not.
Total debt $982.80M Interest coverage 166.82x This peer still has a real interest-payment cushion, while NSP does not.
What you should know
The case for and against NSP
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.9% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 4.7% with 22-year payout history.
Risks
-
Return on equity was -18.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 6.2% (peer median: 10.2%).
-
Operating margin compressed from 4.2% to 0.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
19.05x
P/B
32.17x
P/S
0.29x
EV/EBITDA
67.46x
PEG ratio
1.94x
Profitability
How much profit each dollar creates
Gross margin
12.9%
Operating margin
0.4%
Net margin
-0.2%
ROE
-18.5%
ROA
-0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
7.84x
Current ratio
1.11x
Quick ratio
0.96x
Total debt
$478.00M
Total cash
$619.00M
Growth
How the business has been compounding
Revenue TTM
$6.87B
Revenue 5Y CAGR
8.2%
EPS TTM
-0.44
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$225.00M
Free CF TTM
$-309.00M
FCF margin
-4.5%
Dividend
Shareholder payout
Yield
4.7%
Payout ratio
500.0%
Last ex-div date
2026-09-02