Added to YB: 2026-04-29
Pitch date: 2026-04-27
NSP [bullish]
Insperity, Inc.
+12.75%
current return
Author Info
Company Info
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.
Market Cap
$1.4B
Pitch Price
$33.42
Price Target
105.00 (+179%)
Dividend
6.44%
EV/EBITDA
32.44
P/E
N/A
EV/Sales
0.19
Sector
Professional Services
Category
value
Why I Think This Stock is Worth 3x the Current Price - Insperity, Inc.
NSP: Self-funded PEO hit by 4 simultaneous headwinds (healthcare cost spike, $120M HRScale tech investment expensed, SMB hiring slowdown, covenant fears) causing 70% drawdown. At 310K WSEs, normalized $83-90 EBITDA/WSE/mo implies $236-264M FCF vs $1.25B market cap = 4.7-5.3x FCF. 15x target = 3x upside. CEO bought $4.7M shares + $22M dividend paid signals covenant breach off table. 7% dividend yield. Healthcare pricing resets annually, UHC contract cuts stop-loss from $1M to $500K, HRScale investment complete. PEO moat (large-group insurance pooling, liability assumption) immune to AI. 15% SMB penetration leaves runway for above-GDP growth.
Read full article (23 min)