Insperity, Inc. - Growth & Income
2011年12月29日 - 9:00AM
Zacks
Insperity, Inc. (NSP) recently delivered its 7th consecutive
positive earnings surprise on the back of 14% revenue growth and
32% EPS growth.
Analysts revised their estimates higher for both
2011 and 2012 off the strong quarter, sending the stock to a Zacks
#1 Rank (Strong Buy).
The company also has a solid balance sheet and pays
a dividend that yields 2.4%. Valuation is attractive too, with
shares sporting a PEG ratio of just 0.5.
Company Description
Insperity, Inc. is a professional employer
organization that provides full-service human resources to small
and mid-sized businesses throughout the United States. The company
stands to benefit from an improving economy as businesses hire new
employees.
Formerly known as Administaff, the company was
founded in 1986 and has a market cap of $656 million.
Third Quarter Results
Insperity reported better than expected results for
the third quarter of 2011. Earnings per share came in at 37 cents,
crushing the Zacks Consensus Estimate of 26 cents. It was a stellar
32% increase over the same quarter in 2010.
Revenues rose 14% to $471.8 million, driven by a 9%
increase in the average number of worksite employees paid per month
and a 4.5% increase in revenues per worksite employee per
month.
Meanwhile, gross profit expanded from 17.8% to
18.4% of revenue as the average gross profit per worksite employee
per month increased 8% to $245.
Strong Growth Prospects
Following strong Q3 results, analysts revised their
estimates higher for both 2011 and 2012, sending the stock to a
Zacks #1 Rank (Strong Buy).
The Zacks Consensus Estimate for 2011 is now $1.27,
representing 47% annual EPS growth. The 2012 consensus estimate is
currently $1.69, corresponding with 34% EPS growth.
Solid Dividend
On top of strong growth prospects, Insperity also
pays a dividend that yields 2.4%.
The company has a solid balance sheet with a
healthy cash balance and no long-term debt. It began paying a
dividend in 2005 and has increased it 4 times since then at a
compound annual growth rate of 14%.
Reasonable Valuation
The valuation picture looks reasonable for NSP.
Shares trade at 15.3x 12-month forward earnings, a discount to its
10-year median of 20.5x. If the labor market continues to improve,
expect to see its earnings multiple revert toward its historical
median.
Its PEG ratio is just 0.5 based on the consensus
long-term EPS growth rate of 34%.
The Bottom Line
With rising earnings estimates, strong growth
projections, a 2.4% dividend yield and very reasonable valuation,
Insperity offers investors a lot of upside potential.
Todd Bunton is the Growth & Income Stock
Strategist for Zacks Investment Research and Co-Editor of the
Reitmeister Value Investor.
To read this article on Zacks.com click here.
Administaff (NYSE:ASF)
過去 株価チャート
から 5 2024 まで 6 2024
Administaff (NYSE:ASF)
過去 株価チャート
から 6 2023 まで 6 2024