Why Quality-Oriented Investors Should Consider SPS COMMERCE INC (NASDAQ:SPSC).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SPS COMMERCE INC (NASDAQ:SPSC) is suited for quality investing. Investors should of course do their own research, but we spotted SPS COMMERCE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• SPSC has achieved substantial revenue growth over the past 5 years, with a 17.97% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 109.0%, SPSC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• SPSC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• SPSC demonstrates consistent Profit Quality over the past 5 years, with a strong 172.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• SPSC has experienced impressive EBIT growth over the past 5 years, with 18.28% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• SPSC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of SPSC telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 282 industry peers in the Software industry. SPSC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SPSC is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, SPSC could be worth investigating further for growth and quality investing!.

Check the latest full fundamental report of SPSC for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.