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Insperity, Inc. Message Board

  • had1rian had1rian Oct 17, 2012 1:05 PM Flag

    A solid company hampered by its own reporting

    NSP with some of its recent changes to its is service model and its movement towards Saas offerings is on a path of positive change. Coupled with a general pattern of consistent growth, experienced management team, bulletproof balance sheet and a favorably trending HR market space, the share price would be expected to trend steeply upward.
    A problem that needs to be overcome is that the street cannot understand and is not interested in a Saas ( or outsourcing) company that shows scant 3% margins. Even if their Saas offerings are wildly successful, the weight of including benefits and taxes in revenues cannot be overcome by adding profitable but low per wse Saas fees. Maybe the overall margins increase to 5%. Still not compelling.
    The company should present itself as the $350 million revenue company that it actually is, instead of the $2 billion revenue company that is just an odd Gaap outcome.
    Viewed as a $350 million company the profitability, valuation and operational metrics start to make sense to a street investor.
    In summary, this is a company that seems to be doing good things and a company that investors should be interested in. Unfortunately, the underlying value and forward progress is being hidden under an odd fog of Gaap/ Sec reporting interpretations.
    Might have been nice for shareholders had the company tied changes in their reporting methods to the company name change. Absent a movement in their financial reporting, it can be expected that the shares will continue to muddle along. Kind of a shame.

    Sentiment: Hold

44.90+0.45(+1.01%)Nov 27 1:01 PMEST