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Reasons to Retain Insperity (NSP) Stock in Your Portfolio
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Insperity, Inc. (NSP - Free Report) stock has performed significantly well in the past year, appreciating 28% against the 14.3% decline of the industry it belongs to.
NSP has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company has a long-term expected earnings per share growth rate of 15%.
Factors That Augur Well
Insperity’s business is currently benefiting from strength in the professional employer organization or the PEO industry. This strength is being driven by the growth of small and medium-sized businesses, the increased need of providing employee benefits and workplace safety programs, as well as the related expenses, time and knowledge required to attain the technology infrastructure to administer benefits, HR and payroll processing on an integrated basis.
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. In 2022, total revenues of $5.9 billion increased 19.4% year over year on the back of a 1.5% rise in revenues per worksite employee and a 17.7% jump in paid worksite employees. The average number of worksite employees paid per month was 295,005 at the end of 2022. Worksite employee growth is being driven by strength across sales and higher client retention.
Insperity puts consistent efforts to reward its shareholders. In 2022, the company repurchased 770,000 shares for $73.3 million and paid out dividends totaling $76.6 million. In 2021, the company repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million.
In 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. Such moves indicate Insperity’s commitment to boosting shareholders’ value and underlining its business confidence.
Some Risks
Insperity's current ratio at the end of third-quarter 2022 was pegged at 1.15, lower than the current ratio of 1.20 reported at the end of the prior-year quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Insperity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Trane Technologies (TT - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) .
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Reasons to Retain Insperity (NSP) Stock in Your Portfolio
Insperity, Inc. (NSP - Free Report) stock has performed significantly well in the past year, appreciating 28% against the 14.3% decline of the industry it belongs to.
NSP has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company has a long-term expected earnings per share growth rate of 15%.
Factors That Augur Well
Insperity’s business is currently benefiting from strength in the professional employer organization or the PEO industry. This strength is being driven by the growth of small and medium-sized businesses, the increased need of providing employee benefits and workplace safety programs, as well as the related expenses, time and knowledge required to attain the technology infrastructure to administer benefits, HR and payroll processing on an integrated basis.
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. In 2022, total revenues of $5.9 billion increased 19.4% year over year on the back of a 1.5% rise in revenues per worksite employee and a 17.7% jump in paid worksite employees. The average number of worksite employees paid per month was 295,005 at the end of 2022. Worksite employee growth is being driven by strength across sales and higher client retention.
Insperity, Inc. Revenue (TTM)
Insperity, Inc. revenue-ttm | Insperity, Inc. Quote
Insperity puts consistent efforts to reward its shareholders. In 2022, the company repurchased 770,000 shares for $73.3 million and paid out dividends totaling $76.6 million. In 2021, the company repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million.
In 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. Such moves indicate Insperity’s commitment to boosting shareholders’ value and underlining its business confidence.
Some Risks
Insperity's current ratio at the end of third-quarter 2022 was pegged at 1.15, lower than the current ratio of 1.20 reported at the end of the prior-year quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Insperity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Trane Technologies (TT - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) .
Trane Technologies carries a Zacks Rank #2 (Buy) at present. TT has a long-term earnings growth expectation of 9.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trane delivered a trailing four-quarter earnings surprise of 8.2% on average.
Interpublic currently carries a Zacks Rank #2. IPG has a long-term earnings growth expectation of 4.6%.
IPG delivered a trailing four-quarter earnings surprise of 8.2% on average.