One-glance verdict
Undervalued
$305.86 our estimate vs market $51.82
Wall Street consensus: $51.75 (-83.1% lower than our fair-value estimate)
83% below our estimate, below the bear case
Fundamentals snapshot
Insperity, Inc.
NSP · NYQ · Industrials · Staffing & Employment Services
Current price
$51.82
52-week range
$18.57 - $57.22
Market cap
$1.98B
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: 10.4%).
What this company does
Insperity, Inc.
Insperity acts as an outsourced Human Resources (HR) department for small and medium-sized businesses that don't have their own. It makes money by charging these companies fees to manage complex tasks like payroll, employee benefits, and workplace compliance rules. This matters because by grouping employees from many small clients, Insperity can get better deals on things like health insurance, helping these smaller businesses compete with larger corporations for good workers.
How the company got here
Insperity was founded in 1986 as Administaff by Paul Sarvadi, who saw that small businesses needed help with the complex tasks of managing employees. [9, 20] The company helped pioneer a new industry called Professional Employer Organizations, or PEOs, which handle human resources tasks for other companies. [9] After becoming a public company in 1997, it grew by helping more small and mid-sized businesses across the country. [1, 9] In 2011, the company changed its name from Administaff to Insperity to reflect its broader goal of helping businesses prosper. [1, 9]
What it actually does
Insperity acts as an outsourced human resources (HR) department for small and medium-sized businesses. [4] Through a model called "co-employment," Insperity legally becomes the employer for its clients' workers to handle complex tasks like payroll, employee benefits (like health insurance and retirement plans), and making sure the client follows employment laws. [8, 14] This allows the business owners to focus on running their actual business instead of on HR paperwork. [20] Insperity's clients keep complete control over their day-to-day operations and managing their employees' work. [8]
Insperity HR360
This is Insperity's main and most complete offering, formerly known as Workforce Optimization. [12] It's a full-service solution where businesses hand over the bulk of their HR tasks, including payroll, access to competitive employee benefits, managing workplace risks, and compliance (following the many rules of employment law). [1, 12] Small and mid-sized companies that want to offer big-company benefits and have experts handle their HR complexity are the primary customers. This comprehensive service is the core of Insperity's business and appears to generate the vast majority of its revenue (the money it brings in before expenses). [1]
Insperity HRCore
This service, previously called Workforce Acceleration, is a more streamlined option for businesses that need help with essential HR tasks but don't require the all-inclusive support of the main PEO service. [12] It provides a technology platform and support for core functions like payroll, basic compliance, and workforce management. [12, 17, 19] This offering is for companies that want to manage more of their HR functions themselves but still need a reliable system and some expert support. It represents a more basic, technology-focused slice of the company's business.
Insperity HRScale
This is a newer, high-end service designed for fast-growing or more complex businesses. [17, 19] It was created through a strategic partnership with Workday, a major provider of enterprise software. [11, 30] This solution combines Insperity's expert HR service and co-employment model with Workday's powerful technology for managing finances and human resources. [12, 32] The customers for this are typically larger small businesses or mid-sized companies that need more advanced technology to manage their scaling workforce but still want the service and liability management of a PEO. [30]
What management is betting on now
Insperity's main focus is on growing the number of employees it serves at its client companies by investing in its sales team. [1] The company is also heavily focused on client retention (keeping existing customers happy) because its business model is more profitable with long-term relationships. [1] A key part of their strategy involves carefully managing the costs of benefits like healthcare, which is a major expense. [1] Finally, Insperity is betting on technology to meet the needs of different businesses, especially through its new partnership with Workday to offer the Insperity HRScale solution for more complex clients. [1, 32]
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 $305.86 vs current price $51.82
Wall Street consensus is the average analyst price target: $51.75 (-83.1% lower than our fair-value estimate).
Our most-likely fair value is $305.86 a share — about 490.2% above today's price of $51.82, 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 $4.63B 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 4.8% 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: 10.4%).
-
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
19.21x
P/B
32.45x
P/S
0.29x
EV/EBITDA
68.08x
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
4.8%
Payout ratio
500.0%
Last ex-div date
2026-09-02