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How Insperity, Inc. (NYSE:NSP) Could Add Value To Your Portfolio

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of Insperity, Inc. (NYSE:NSP), there's is a financially-robust company with a strong track record and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Insperity here.

Solid track record with reasonable growth potential

In the previous year, NSP has ramped up its bottom line by 64%, with its latest earnings level surpassing its average level over the last five years. Not only did NSP outperformed its past performance, its growth also exceeded the Professional Services industry expansion, which generated a 25% earnings growth. This is an notable feat for the company.

NYSE:NSP Past and Future Earnings, June 24th 2019

NSP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that NSP manages its cash and cost levels well, which is an important determinant of the company’s health. NSP's has produced operating cash levels of 1.88x total debt over the past year, which implies that NSP's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:NSP Historical Debt, June 24th 2019

Next Steps:

For Insperity, I've compiled three relevant factors you should look at:

  1. Valuation: What is NSP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NSP is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does NSP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from NSP as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NSP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.