SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC - Nasdaq - US78463M1071 - Common Stock - Currency: USD
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 283 industry peers in the Software industry. SPSC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SPSC is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make SPSC a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year SPSC was profitable.
In the past year SPSC had a positive cash flow from operations.
SPSC had positive earnings in each of the past 5 years.
In the past 5 years SPSC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.33%, SPSC is in the better half of the industry, outperforming 79.86% of the companies in the same industry.
With a decent Return On Equity value of 8.82%, SPSC is doing good in the industry, outperforming 76.33% of the companies in the same industry.
SPSC has a Return On Invested Capital of 8.03%. This is amongst the best in the industry. SPSC outperforms 80.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 12.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 8.82% | ||
| ROIC | 8.03% |
ROA(3y)7.88%
ROA(5y)7.91%
ROE(3y)9.71%
ROE(5y)9.84%
ROIC(3y)8.71%
ROIC(5y)8.62%
1.3 Margins
SPSC's Profit Margin of 12.13% is fine compared to the rest of the industry. SPSC outperforms 77.39% of its industry peers.
SPSC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.85%, SPSC belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
SPSC's Operating Margin has been stable in the last couple of years.
SPSC has a Gross Margin of 67.73%. This is comparable to the rest of the industry: SPSC outperforms 51.24% of its industry peers.
SPSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.85% | ||
| PM (TTM) | 12.13% | ||
| GM | 67.73% |
OM growth 3Y-0.86%
OM growth 5Y0.26%
PM growth 3Y1.44%
PM growth 5Y0.01%
GM growth 3Y0.57%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPSC is destroying value.
SPSC has more shares outstanding than it did 1 year ago.
SPSC has more shares outstanding than it did 5 years ago.
There is no outstanding debt for SPSC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SPSC has an Altman-Z score of 19.51. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.51, SPSC belongs to the top of the industry, outperforming 93.29% of the companies in the same industry.
SPSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.51 |
ROIC/WACC0.73
WACC10.93%
2.3 Liquidity
A Current Ratio of 1.64 indicates that SPSC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, SPSC is in line with its industry, outperforming 49.82% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that SPSC should not have too much problems paying its short term obligations.
The Quick ratio of SPSC (1.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.36%, which is quite good.
The Earnings Per Share has been growing by 22.07% on average over the past years. This is a very strong growth
The Revenue has grown by 19.46% in the past year. This is quite good.
Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 17.97% on average per year.
EPS 1Y (TTM)18.36%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%16.28%
Revenue 1Y (TTM)19.46%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%21.38%
3.2 Future
The Earnings Per Share is expected to grow by 17.21% on average over the next years. This is quite good.
Based on estimates for the next years, SPSC will show a quite strong growth in Revenue. The Revenue will grow by 15.54% on average per year.
EPS Next Y15.84%
EPS Next 2Y15.6%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue Next Year19.55%
Revenue Next 2Y16.11%
Revenue Next 3Y15.54%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.60, the valuation of SPSC can be described as expensive.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than 62.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, SPSC is valued quite expensively.
With a Price/Forward Earnings ratio of 31.60, SPSC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 62.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. SPSC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.6 | ||
| Fwd PE | 31.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 71.38% of the companies listed in the same industry.
SPSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 66.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.57 | ||
| EV/EBITDA | 38.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SPSC may justify a higher PE ratio.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)2.56
PEG (5Y)1.84
EPS Next 2Y15.6%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SPSC (5/21/2025, 10:34:48 AM)
146.55
-2.45 (-1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.85%
Inst Owner Change-1.65%
Ins Owners0.69%
Ins Owner Change120.31%
Market Cap5.57B
Analysts80
Price Target188.45 (28.59%)
Short Float %3.63%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.3%
Min EPS beat(2)0.86%
Max EPS beat(2)15.73%
EPS beat(4)4
Avg EPS beat(4)6.95%
Min EPS beat(4)0.86%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)8.12%
EPS beat(12)12
Avg EPS beat(12)9.72%
EPS beat(16)16
Avg EPS beat(16)10.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)-7.69%
PT rev (3m)-14.81%
EPS NQ rev (1m)-3.05%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)2.1%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.6 | ||
| Fwd PE | 31.6 | ||
| P/S | 8.31 | ||
| P/FCF | 39.57 | ||
| P/OCF | 34.08 | ||
| P/B | 6.04 | ||
| P/tB | 41.32 | ||
| EV/EBITDA | 38.06 |
EPS(TTM)3.61
EY2.46%
EPS(NY)4.64
Fwd EY3.16%
FCF(TTM)3.7
FCFY2.53%
OCF(TTM)4.3
OCFY2.93%
SpS17.63
BVpS24.25
TBVpS3.55
PEG (NY)2.56
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 8.82% | ||
| ROCE | 10.41% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 103.05% | ||
| OM | 14.85% | ||
| PM (TTM) | 12.13% | ||
| GM | 67.73% | ||
| FCFM | 21% |
ROA(3y)7.88%
ROA(5y)7.91%
ROE(3y)9.71%
ROE(5y)9.84%
ROIC(3y)8.71%
ROIC(5y)8.62%
ROICexc(3y)13.58%
ROICexc(5y)14.47%
ROICexgc(3y)98.15%
ROICexgc(5y)87.03%
ROCE(3y)11.28%
ROCE(5y)11.17%
ROICexcg growth 3Y10.82%
ROICexcg growth 5Y19.47%
ROICexc growth 3Y-13.8%
ROICexc growth 5Y-9.82%
OM growth 3Y-0.86%
OM growth 5Y0.26%
PM growth 3Y1.44%
PM growth 5Y0.01%
GM growth 3Y0.57%
GM growth 5Y0%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 48.48% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.72% | ||
| Profit Quality | 173.12% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 19.51 |
F-Score6
WACC10.93%
ROIC/WACC0.73
Cap/Depr(3y)58.3%
Cap/Depr(5y)68.47%
Cap/Sales(3y)3.75%
Cap/Sales(5y)4.32%
Profit Quality(3y)164.93%
Profit Quality(5y)172.42%
High Growth Momentum
Growth
EPS 1Y (TTM)18.36%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%16.28%
EPS Next Y15.84%
EPS Next 2Y15.6%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%21.38%
Revenue Next Year19.55%
Revenue Next 2Y16.11%
Revenue Next 3Y15.54%
Revenue Next 5YN/A
EBIT growth 1Y31.03%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year39.23%
EBIT Next 3Y25.03%
EBIT Next 5YN/A
FCF growth 1Y45.6%
FCF growth 3Y13.76%
FCF growth 5Y18.74%
OCF growth 1Y39.11%
OCF growth 3Y11.71%
OCF growth 5Y17%