# Insperity (NSP.US)

Canonical: https://gigainvestors.com/s/NSP

Analysis as of: 2026-10-16T07:30:41.085Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $50.80 per share; close as of 2026-10-15.

Estimated value: low $63.90 per share, central $70.98 per share, high $80.39 per share. Buy at or below the central value $70.98 per share. Valuation as of 2026-10-16T07:30:41.085Z; scenarios are not confidence intervals.

Expected annual return: 13.9% at the stated quote. About 13.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.05×

- FY2019: 0.04×

- FY2020: 0.05×

- FY2021: 0.03×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.02×

- FY2025: -0.00×

- LTM to Jun 2026: -0.00×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 34.0%

- ROIC, second-lowest year: 15.9%

- Typical minus recent gross margin: 3.6 pp

- Typical gross margin (annual median): 16.9%

- Recent gross margin (lower of latest and 3-year median): 13.2%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.8%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 41.9%

- FY2017: 49.5%

- FY2018: 59.9%

- FY2019: 44.7%

- FY2020: 29.8%

- FY2021: 29.6%

- FY2022: 36.1%

- FY2023: 31.9%

- FY2024: 15.9%

- FY2025: -1.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $597M

- Net income, five-year total: $558M

- Return on incremental invested capital: -7.1%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.3 pp

- Working capital / revenue, final three-year average: 11.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.05×

- FY2022: 1.06×

- FY2023: 1.02×

- FY2024: 1.07×

- FY2025: -1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 49.5% vs 15.9%

- Per-share earnings: 1.60 to 2.39 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.2%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: -$6.2M

- Cumulative retained earnings: $360M

- Diluted shares, 10-year annual growth: -2.2%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.2%

- Per-share value change: $0.80

- Per-share value, starting three-year median: $1.60

- Per-share value, ending three-year median: $2.39

- Buybacks concentrated in cheaper years (correlation): 0.87

- Average buyback yield: 3.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $46M

- Cumulative net income, 10 years: $1.1B

- ROIC, first three-year median: 49.5%

- ROIC, last three-year median: 15.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.60

- FY2017: $2.06

- FY2018: $3.29

- FY2019: $3.82

- FY2020: $3.61

- FY2021: $3.19

- FY2022: $4.60

- FY2023: $4.50

- FY2024: $2.39

- FY2025: -$0.18

### accounting: pass

- Sloan accruals exceed 10%

- Sloan accruals: 12.3%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.57×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.4%

- FY2017: -11.3%

- FY2018: -4.1%

- FY2019: -3.9%

- FY2020: -13.1%

- FY2021: -7.8%

- FY2022: -8.3%

- FY2023: -1.3%

- FY2024: -16.5%

- FY2025: 12.3%

## Holders

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 59% since Oct 2021 · "Insperity (NSP) Is Down 12.9% After Cut To 2026 Earnings Outlook Amid Margin Pressures" (finance.yahoo.com, May 2026) · sales +0.9%

Story as of 2026-10-16T09:59:16.613Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.4% a year for ten years

- 2025-08-13: NSP Q2 Deep Dive: Margin Compression and Elevated Benefits Costs Drive Down Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/nsp-q2-deep-dive-margin-041951729.html))

- 2025-11-04: NSP Q3 Deep Dive: Health Benefits Cost Surge Triggers Guidance Reset and Margin Pressure ([finance.yahoo.com](https://finance.yahoo.com/news/nsp-q3-deep-dive-health-134149216.html))

- 2026-02-16: Insperity Resets Profit Focus With HRScale Rollout And Cost Cuts ([finance.yahoo.com](https://finance.yahoo.com/news/insperity-resets-profit-focus-hrscale-043127488.html))

- 2026-05-04: Insperity (NSP) Is Down 12.9% After Cut To 2026 Earnings Outlook Amid Margin Pressures ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/insperity-nsp-down-12-9-081144550.html))

### Sales · FY2025–2026

sales +0.9%; source https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm; observed 2026-02-11.

- FY2017: $3.3B 

- FY2018: $3.8B 

- FY2019: $4.3B 

- FY2020: $4.3B 

- FY2021: $5.0B 

- FY2022: $5.9B 

- FY2023: $6.5B 

- FY2024: $6.6B 

- FY2025: $6.8B 

- FY2026: $6.9B 

### Gross margin · FY2025

gross margin 13.2%; source https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm; observed 2026-02-11.

- FY2016: 16.7% 

- FY2017: 17.4% 

- FY2018: 17.8% 

- FY2019: 17.0% 

- FY2020: 18.8% 

- FY2021: 16.5% 

- FY2022: 17.0% 

- FY2023: 16.0% 

- FY2024: 16.0% 

- FY2025: 13.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in staffing & employment services; annual sales are USD 6.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm (filed 2026-02-11); FY2025: revenue 6812000000; grossProfit 900000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); NSP.US: Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers Insperity HR360 solution, a full-service PEO solution delivering HR technology, compliance, and strategic support for small and midsize businesses; Insperity HRCore, a streamlined HR platform for payroll, compliance, and workforce management; and Insperity HRScale, a scalable HR solution combining Insperity expertise with Workday technology for businesses. The company also provides performance solutions, including talent acquisition, retirement, and insurance services; contractor management; and Perks+ services. In addition, it offers human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; and performance management services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

### Why customers stay

Margins ranged from 13.2% to 16% during 2023–25; it earns 34% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 16%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 16%.

- Source: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 13.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,0.4189716537820221],[2017,0.49473497695069735],[2018,0.5986452158891905],[2019,0.4474329684010924],[2020,0.2975902509743728],[2021,0.29605272858315945],[2022,0.36140837993358615],[2023,0.31946257197696737],[2024,0.1588345864661654],[2025,-0.016424116424116425]]; median 0.3404354759552768. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 17% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm (filed 2026-02-11); Gross margin observations: [[2021,0.16490859770725125],[2022,0.17027512882193055],[2023,0.15988282454517422]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 19 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2016: growth capex 11388259.652724616; upkeep 22605740.347275384; owner earnings 60029259.652724616. Growth capex / owner earnings = 0.18971181251621058.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 11058320.443692658; upkeep 22278679.556307342; owner earnings 80305320.44369265. Growth capex / owner earnings = 0.1377034595291401.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2018: growth capex 12486000; upkeep 22842000; owner earnings 135413000. Growth capex / owner earnings = 0.09220680436885675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2019: growth capex 15368096.148038909; upkeep 40938903.85196109; owner earnings 138883096.14803892. Growth capex / owner earnings = 0.11065490743133834.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2020: growth capex 0; upkeep 98159000; owner earnings 71267000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2021: growth capex 0; upkeep 32907000; owner earnings 129720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 0; upkeep 30329000; owner earnings 189681000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 0; upkeep 40117000; owner earnings 173883000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 0; upkeep 38000000; owner earnings 97000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm (filed 2026-02-11); FY2025: growth capex 0; upkeep 31000000; owner earnings 7000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,20599000],[2017,65768000],[2018,33408000],[2019,48622000],[2020,61869000],[2021,144179000],[2022,76592000],[2023,84219000],[2024,89000000],[2025,90000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 19000000 USD.

### What the price says

The price assumes cash profits shrink 4.4% yearly over ten years; actual decline was 14.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate -0.07512611081040502. Price 50.8; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.843894906039873 → FY2025 0.18421052631578946. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $37.60 per share

- 2016-11: $36.20 per share

- 2016-12: $35.48 per share

- 2017-01: $35.75 per share

- 2017-02: $41.63 per share

- 2017-03: $44.33 per share

- 2017-04: $45.68 per share

- 2017-05: $37.73 per share

- 2017-06: $35.50 per share

- 2017-07: $37.75 per share

- 2017-08: $40.15 per share

- 2017-09: $44.00 per share

- 2017-10: $47.45 per share

- 2017-11: $58.95 per share

- 2017-12: $57.35 per share

- 2018-01: $61.25 per share

- 2018-02: $65.30 per share

- 2018-03: $69.55 per share

- 2018-04: $80.25 per share

- 2018-05: $92.00 per share

- 2018-06: $95.25 per share

- 2018-07: $95.10 per share

- 2018-08: $119.85 per share

- 2018-09: $117.95 per share

- 2018-10: $109.85 per share

- 2018-11: $100.04 per share

- 2018-12: $93.36 per share

- 2019-01: $106.68 per share

- 2019-02: $126.27 per share

- 2019-03: $123.66 per share

- 2019-04: $119.56 per share

- 2019-05: $113.90 per share

- 2019-06: $122.14 per share

- 2019-07: $106.35 per share

- 2019-08: $99.06 per share

- 2019-09: $98.62 per share

- 2019-10: $105.63 per share

- 2019-11: $77.77 per share

- 2019-12: $86.04 per share

- 2020-01: $87.37 per share

- 2020-02: $67.27 per share

- 2020-03: $37.30 per share

- 2020-04: $47.71 per share

- 2020-05: $51.84 per share

- 2020-06: $64.73 per share

- 2020-07: $66.86 per share

- 2020-08: $67.37 per share

- 2020-09: $65.49 per share

- 2020-10: $76.58 per share

- 2020-11: $85.50 per share

- 2020-12: $81.42 per share

- 2021-01: $78.49 per share

- 2021-02: $88.70 per share

- 2021-03: $83.74 per share

- 2021-04: $87.54 per share

- 2021-05: $92.19 per share

- 2021-06: $90.37 per share

- 2021-07: $99.05 per share

- 2021-08: $110.34 per share

- 2021-09: $110.74 per share

- 2021-10: $125.00 per share

- 2021-11: $115.74 per share

- 2021-12: $118.11 per share

- 2022-01: $107.53 per share

- 2022-02: $89.95 per share

- 2022-03: $100.42 per share

- 2022-04: $106.05 per share

- 2022-05: $100.07 per share

- 2022-06: $99.83 per share

- 2022-07: $109.74 per share

- 2022-08: $109.02 per share

- 2022-09: $102.09 per share

- 2022-10: $118.02 per share

- 2022-11: $118.55 per share

- 2022-12: $113.60 per share

- 2023-01: $110.55 per share

- 2023-02: $124.09 per share

- 2023-03: $121.55 per share

- 2023-04: $122.46 per share

- 2023-05: $110.72 per share

- 2023-06: $118.96 per share

- 2023-07: $117.65 per share

- 2023-08: $101.33 per share

- 2023-09: $97.60 per share

- 2023-10: $105.84 per share

- 2023-11: $113.75 per share

- 2023-12: $117.22 per share

- 2024-01: $114.69 per share

- 2024-02: $101.79 per share

- 2024-03: $109.61 per share

- 2024-04: $102.93 per share

- 2024-05: $94.72 per share

- 2024-06: $91.21 per share

- 2024-07: $102.72 per share

- 2024-08: $93.99 per share

- 2024-09: $88.00 per share

- 2024-10: $78.77 per share

- 2024-11: $78.85 per share

- 2024-12: $77.51 per share

- 2025-01: $75.01 per share

- 2025-02: $87.97 per share

- 2025-03: $89.23 per share

- 2025-04: $65.01 per share

- 2025-05: $64.72 per share

- 2025-06: $60.12 per share

- 2025-07: $59.58 per share

- 2025-08: $55.22 per share

- 2025-09: $49.20 per share

- 2025-10: $44.12 per share

- 2025-11: $35.37 per share

- 2025-12: $38.72 per share

- 2026-01: $42.73 per share

- 2026-02: $22.21 per share

- 2026-03: $27.04 per share

- 2026-04: $35.57 per share

- 2026-05: $34.47 per share

- 2026-06: $41.31 per share

- 2026-07: $50.61 per share

- 2026-08: $53.35 per share

- 2026-09: $46.59 per share

- 2026-10: $50.80 per share

## Annual estimated value (USD per share)

- FY2016: low $21.87 per share, central $26.87 per share, high $30.49 per share

- FY2017: low $26.65 per share, central $34.15 per share, high $38.83 per share

- FY2018: low $33.32 per share, central $44.37 per share, high $50.80 per share

- FY2019: low $44.07 per share, central $59.54 per share, high $68.54 per share

- FY2020: low $50.25 per share, central $66.14 per share, high $75.39 per share

- FY2021: low $58.40 per share, central $77.82 per share, high $89.13 per share

- FY2022: low $82.71 per share, central $111.05 per share, high $127.55 per share

- FY2023: low $77.45 per share, central $104.11 per share, high $119.63 per share

- FY2024: low $80.19 per share, central $96.73 per share, high $108.99 per share

- FY2025: low $64.89 per share, central $71.94 per share, high $81.32 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.