SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
105.93 USD
+1.42 (+1.36%)
105.93 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 281 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! These ratings would make SPSC suitable 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.
In the past 5 years SPSC has always been profitable.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.40%, SPSC is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.73%, SPSC is in the better half of the industry, outperforming 73.67% of the companies in the same industry.
SPSC has a better Return On Invested Capital (8.15%) than 79.00% 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 11.98%.
| 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
SPSC has a Profit Margin of 11.79%. This is in the better half of the industry: SPSC outperforms 74.02% of its industry peers.
SPSC's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 14.60%, SPSC belongs to the best of the industry, outperforming 80.78% of the companies in the same industry.
In the last couple of years the Operating Margin of SPSC has remained more or less at the same level.
With a Gross Margin value of 68.17%, SPSC perfoms like the industry average, outperforming 49.11% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
SPSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SPSC has been increased compared to 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 15.60. 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 15.60, SPSC belongs to the top of the industry, outperforming 90.75% 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 | 15.6 |
ROIC/WACC0.72
WACC11.34%
2.3 Liquidity
A Current Ratio of 1.82 indicates that SPSC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, SPSC is in line with its industry, outperforming 58.01% of the companies in the same industry.
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.
The Quick ratio of SPSC (1.82) is comparable to the rest of the industry.
| 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.
Measured over the past years, SPSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.07% on average per year.
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 16.61% 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 12.76% yearly.
EPS Next Y18.78%
EPS Next 2Y16.15%
EPS Next 3Y16.61%
EPS Next 5YN/A
Revenue Next Year19.7%
Revenue Next 2Y14.34%
Revenue Next 3Y12.76%
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.
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
The Price/Earnings ratio is 27.80, which means the current valuation is very expensive for SPSC.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than 69.04% of the companies in the same industry.
SPSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.63 indicates a rather expensive valuation of SPSC.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than 72.24% of the companies in the same industry.
SPSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 22.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than 77.22% of the companies in the same industry.
SPSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 72.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.29 | ||
| EV/EBITDA | 25.3 |
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.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 16.61% in the coming years.
PEG (NY)1.48
PEG (5Y)1.26
EPS Next 2Y16.15%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.93
+1.42 (+1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0%
Ins Owners0.64%
Ins Owner Change0.09%
Market Cap4.02B
Analysts77.89
Price Target153.98 (45.36%)
Short Float %5.5%
Short Ratio4.41
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)-15.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 22.63 | ||
| P/S | 5.71 | ||
| P/FCF | 28.29 | ||
| P/OCF | 24.16 | ||
| P/B | 4.23 | ||
| P/tB | 23.74 | ||
| EV/EBITDA | 25.3 |
EPS(TTM)3.81
EY3.6%
EPS(NY)4.68
Fwd EY4.42%
FCF(TTM)3.74
FCFY3.53%
OCF(TTM)4.38
OCFY4.14%
SpS18.56
BVpS25.05
TBVpS4.46
PEG (NY)1.48
PEG (5Y)1.26
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%
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 Turnover0.63
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 | 15.6 |
F-Score6
WACC11.34%
ROIC/WACC0.72
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 2Y16.15%
EPS Next 3Y16.61%
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 2Y14.34%
Revenue Next 3Y12.76%
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%