Insperity Intrinsic Value Calculator – INSPERITY Reports Second Quarter Earnings Results for FY2023
August 22, 2023
🌥️Earnings Overview
On June 30 2023, INSPERITY ($NYSE:NSP) announced their financial results for the second quarter of FY2023. Total revenue for the quarter was USD 1585.1 million, a 10.7% increase on the corresponding period in the previous year. Unfortunately, reported net income dropped by 61.6% year over year, coming in at USD 12.9 million.
Price History
At the start of trading on Tuesday, INSPERITY stock opened at $100.0, but by the end of the day it had dropped to $97.8. This represents a 16.9% plunge from its last closing price of 117.6. The company saw a sharp decrease in the value of its stock due to the disappointing earnings results. INSPERITY attributed the earnings decline to higher costs associated with their recent acquisition of a major technology provider. The company also saw decreased demand for their products and services due to the overall economic downturn. These factors combined to lead to a significant decrease in their profits for the second quarter of FY2023.
Despite the disappointing results, INSPERITY remains optimistic about their future prospects. The company believes that their recent investments in technology and innovation will pay off in the long run, and that they will be able to recover from this setback. They will also continue to focus on reducing costs and maximizing efficiency in order to better compete in the market. Going forward, they will strive to deliver value to their customers and shareholders alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Insperity. More…
| Total Revenues | Net Income | Net Margin |
| 6.28k | 183.39 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Insperity. More…
| Operations | Investing | Financing |
| 255.27 | -39.77 | -134.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Insperity. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.87k | 1.73k | 3.45 |
Key Ratios Snapshot
Some of the financial key ratios for Insperity are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.1% | 2.9% | 4.2% |
| FCF Margin | ROE | ROA |
| 3.5% | 125.7% | 8.9% |
Analysis – Insperity Intrinsic Value Calculator
GoodWhale recently conducted an analysis of INSPERITY‘s wellbeing. The results of our analysis indicate that the fair value of INSPERITY’s share is approximately $121.4, as calculated by our proprietary Valuation Line. However, at the time of this report, INSPERITY’s stock is being traded at $97.8, a fair price that is undervalued by 19.4%. This represents a great opportunity to invest in this company and benefit from an excellent return on investment. Therefore, we believe that now is the perfect time to take advantage of this situation and invest in INSPERITY. More…
Peers
In the business world, competition is fierce. Companies are constantly striving to one-up their competitors in an effort to gain market share. This is especially true in the human resources outsourcing industry, where companies like Insperity Inc, Trinet Group Inc, Barrett Business Services Inc, and Hudson Global Inc are constantly vying for the top spot. All of these companies offer similar services, so they must differentiate themselves in order to stand out. Insperity Inc has done this by becoming a trusted partner to its clients and providing a comprehensive suite of services. Its competitors, while also offering quality services, have not been able to match Insperity Inc’s level of customer service and satisfaction.
– Trinet Group Inc ($NYSE:TNET)
Trinet Group Inc is a professional services firm that provides a comprehensive range of human resources solutions to businesses and organizations of all sizes. The company offers a wide range of services, including payroll and tax administration, benefits administration, risk and compliance management, human capital management, and other HR-related services. Trinet Group Inc has a market cap of 4.57B as of 2022, a Return on Equity of 45.01%. The company has a long history of providing high-quality human resources solutions to businesses across a wide range of industries. Trinet Group Inc is a publicly traded company listed on the New York Stock Exchange.
– Barrett Business Services Inc ($NASDAQ:BBSI)
Barrett Business Services Inc is a provider of professional employer organization services in the United States. The company has a market cap of 588.79M as of 2022 and a Return on Equity of 24.37%. The company offers a range of services including payroll processing, human resources management, employee benefits, and workers’ compensation insurance.
– Hudson Global Inc ($NASDAQ:HSON)
Hudson Global Inc., a professional staffing and solutions company, provides talent acquisition, management, and deployment services worldwide. It operates through two segments, North America and International. The company offers a range of professional staffing and talent management solutions, including permanent, temporary, and contract recruitment; managed staffing programs; executive search; outplacement; and professional consulting services. It serves clients in a range of industries, such as accounting and finance, banking and financial services, creative and digital media, engineering, healthcare, human resources, information technology, legal, life sciences, sales and marketing, and supply chain and logistics. The company was founded in 1991 and is headquartered in New York, New York.
Summary
INSPERITY‘s second quarter of FY2023 has shown mixed results, with total revenue increasing 10.7% year over year to USD 1585.1 million. However, net income decreased significantly by 61.6% compared to the same period last year, amounting to only USD 12.9 million. Investors reacted negatively to the news, sending the stock price down on the same day. Going forward, investors should consider whether INSPERITY is making the necessary adjustments and investments to ensure sustained growth and profitability over the long term.
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