SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
105.18 USD
-4.81 (-4.37%)
105.18 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SPSC. SPSC was compared to 285 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes SPSC very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SPSC was profitable.
SPSC had a positive operating cash flow in the past year.
Each year in the past 5 years SPSC has been profitable.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPSC has a better Return On Assets (7.40%) than 80.00% of its industry peers.
With a decent Return On Equity value of 8.73%, SPSC is doing good in the industry, outperforming 74.04% of the companies in the same industry.
The Return On Invested Capital of SPSC (8.15%) is better than 79.30% of its industry peers.
SPSC had an Average Return On Invested Capital over the past 3 years of 8.71%. This is below the industry average of 11.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.4% | ||
| ROE | 8.73% | ||
| ROIC | 8.15% |
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
With a decent Profit Margin value of 11.79%, SPSC is doing good in the industry, outperforming 74.04% of the companies in the same industry.
SPSC's Profit Margin has been stable in the last couple of years.
SPSC has a better Operating Margin (14.60%) than 81.05% of its industry peers.
SPSC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 68.17%, SPSC perfoms like the industry average, outperforming 49.47% of the companies in the same industry.
In the last couple of years the Gross Margin of SPSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.6% | ||
| PM (TTM) | 11.79% | ||
| GM | 68.17% |
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
An Altman-Z score of 16.13 indicates that SPSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPSC (16.13) is better than 91.23% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.13 |
ROIC/WACC0.74
WACC10.96%
2.3 Liquidity
A Current Ratio of 1.82 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC has a Current ratio (1.82) which is in line with its industry peers.
SPSC has a Quick Ratio of 1.82. This is a normal value and indicates that SPSC is financially healthy and should not expect problems in meeting its short term obligations.
SPSC's Quick ratio of 1.82 is in line compared to the rest of the industry. SPSC outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.57% over the past year.
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 20.50% in the past year. This is a very strong growth!
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)20.57%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%25%
Revenue 1Y (TTM)20.5%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%22.01%
3.2 Future
The Earnings Per Share is expected to grow by 16.67% on average over the next years. This is quite good.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.72% yearly.
EPS Next Y18.78%
EPS Next 2Y16.14%
EPS Next 3Y16.67%
EPS Next 5YN/A
Revenue Next Year19.7%
Revenue Next 2Y14.31%
Revenue Next 3Y12.72%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.61, the valuation of SPSC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 68.42% of the companies listed in the same industry.
SPSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
SPSC is valuated rather expensively with a Price/Forward Earnings ratio of 22.47.
69.82% of the companies in the same industry are more expensive than SPSC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. SPSC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 22.47 |
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 77.89% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 26.3 |
4.3 Compensation for Growth
SPSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SPSC has a very decent profitability rating, which may justify a higher PE ratio.
SPSC's earnings are expected to grow with 16.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)1.25
EPS Next 2Y16.14%
EPS Next 3Y16.67%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.18
-4.81 (-4.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.72%
Ins Owners0.64%
Ins Owner Change0.09%
Market Cap3.99B
Revenue(TTM)703.54M
Net Income(TTM)82.95M
Analysts77.89
Price Target153.98 (46.4%)
Short Float %5.7%
Short Ratio5.25
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)11.96%
Min EPS beat(2)8.18%
Max EPS beat(2)15.73%
EPS beat(4)4
Avg EPS beat(4)8.46%
Min EPS beat(4)0.86%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)8.2%
EPS beat(12)12
Avg EPS beat(12)9.96%
EPS beat(16)16
Avg EPS beat(16)9.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)2
Avg Revenue beat(12)-0.73%
Revenue beat(16)3
Avg Revenue beat(16)-0.81%
PT rev (1m)-2.69%
PT rev (3m)-15.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 22.47 | ||
| P/S | 5.67 | ||
| P/FCF | 28.09 | ||
| P/OCF | 23.99 | ||
| P/B | 4.2 | ||
| P/tB | 23.57 | ||
| EV/EBITDA | 26.3 |
EPS(TTM)3.81
EY3.62%
EPS(NY)4.68
Fwd EY4.45%
FCF(TTM)3.74
FCFY3.56%
OCF(TTM)4.38
OCFY4.17%
SpS18.56
BVpS25.05
TBVpS4.46
PEG (NY)1.47
PEG (5Y)1.25
Graham Number46.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.4% | ||
| ROE | 8.73% | ||
| ROCE | 10.56% | ||
| ROIC | 8.15% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 93.4% | ||
| OM | 14.6% | ||
| PM (TTM) | 11.79% | ||
| GM | 68.17% | ||
| FCFM | 20.17% |
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%
ROICexgc growth 3Y10.82%
ROICexgc 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.92% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.6% | ||
| Profit Quality | 171.11% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 16.13 |
F-Score6
WACC10.96%
ROIC/WACC0.74
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)20.57%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%25%
EPS Next Y18.78%
EPS Next 2Y16.14%
EPS Next 3Y16.67%
EPS Next 5YN/A
Revenue 1Y (TTM)20.5%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%22.01%
Revenue Next Year19.7%
Revenue Next 2Y14.31%
Revenue Next 3Y12.72%
Revenue Next 5YN/A
EBIT growth 1Y25.21%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.78%
EBIT Next 3Y24.03%
EBIT Next 5YN/A
FCF growth 1Y45.57%
FCF growth 3Y13.76%
FCF growth 5Y18.74%
OCF growth 1Y39.66%
OCF growth 3Y11.71%
OCF growth 5Y17%
SPS COMMERCE INC / SPSC FAQ
Can you provide the ChartMill fundamental rating for SPS COMMERCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SPSC.
Can you provide the valuation status for SPS COMMERCE INC?
ChartMill assigns a valuation rating of 4 / 10 to SPS COMMERCE INC (SPSC). This can be considered as Fairly Valued.
How profitable is SPS COMMERCE INC (SPSC) stock?
SPS COMMERCE INC (SPSC) has a profitability rating of 6 / 10.
What is the financial health of SPS COMMERCE INC (SPSC) stock?
The financial health rating of SPS COMMERCE INC (SPSC) is 7 / 10.
What is the earnings growth outlook for SPS COMMERCE INC?
The Earnings per Share (EPS) of SPS COMMERCE INC (SPSC) is expected to grow by 18.78% in the next year.