81.11 USD
+2.63 (+3.35%)
81.11 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make SPSC suitable 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.
In the past 5 years SPSC has always been profitable.
In the past 5 years SPSC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.34%, SPSC is doing good in the industry, outperforming 78.65% of the companies in the same industry.
SPSC has a Return On Equity of 8.87%. This is in the better half of the industry: SPSC outperforms 74.02% of its industry peers.
SPSC has a Return On Invested Capital of 8.38%. This is in the better half of the industry: SPSC outperforms 79.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 8.87% | ||
| ROIC | 8.38% |
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 11.66%, SPSC is doing good in the industry, outperforming 72.95% of the companies in the same industry.
In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
SPSC's Operating Margin of 14.85% is amongst the best of the industry. SPSC outperforms 81.49% of its industry peers.
In the last couple of years the Operating Margin of SPSC has remained more or less at the same level.
SPSC has a Gross Margin of 68.45%. This is comparable to the rest of the industry: SPSC outperforms 49.11% of its industry peers.
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 | 14.85% | ||
| PM (TTM) | 11.66% | ||
| GM | 68.45% |
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.
Compared to 1 year ago, SPSC has more shares outstanding
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 10.82. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.82, SPSC belongs to the best of the industry, outperforming 89.32% 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 | 10.82 |
ROIC/WACC0.76
WACC10.98%
2.3 Liquidity
SPSC has a Current Ratio of 1.97. This is a normal value and indicates that SPSC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.97, SPSC perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
SPSC has a Quick Ratio of 1.97. 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 (1.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.72%, which is quite impressive.
SPSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.07% yearly.
Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.28% in the last year.
The Revenue has been growing by 17.97% on average over the past years. This is quite good.
EPS 1Y (TTM)20.72%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%22.83%
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
3.2 Future
Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.51% on average per year.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.71% yearly.
EPS Next Y20.32%
EPS Next 2Y15.6%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue Next Year18.74%
Revenue Next 2Y13.33%
Revenue Next 3Y11.71%
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
Based on the Price/Earnings ratio of 20.18, the valuation of SPSC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 72.95% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (25.45), we can say SPSC is valued slightly cheaper.
SPSC is valuated rather expensively with a Price/Forward Earnings ratio of 17.49.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 75.44% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (34.46), we can say SPSC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than 77.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.72 | ||
| EV/EBITDA | 17.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SPSC may justify a higher PE ratio.
SPSC's earnings are expected to grow with 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)0.91
EPS Next 2Y15.6%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.11
+2.63 (+3.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change-1.17%
Ins Owners0.64%
Ins Owner Change0.08%
Market Cap3.07B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts75.79
Price Target103.38 (27.46%)
Short Float %5.52%
Short Ratio3.94
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)9.62%
Min EPS beat(2)8.18%
Max EPS beat(2)11.06%
EPS beat(4)4
Avg EPS beat(4)8.96%
Min EPS beat(4)0.86%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)8.44%
EPS beat(12)12
Avg EPS beat(12)9.4%
EPS beat(16)16
Avg EPS beat(16)10%
Revenue beat(2)0
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.58%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)-32.86%
PT rev (3m)-34.67%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)1.29%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.49 | ||
| P/S | 4.21 | ||
| P/FCF | 20.72 | ||
| P/OCF | 17.72 | ||
| P/B | 3.21 | ||
| P/tB | 16.13 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)4.02
EY4.96%
EPS(NY)4.64
Fwd EY5.72%
FCF(TTM)3.91
FCFY4.83%
OCF(TTM)4.58
OCFY5.64%
SpS19.25
BVpS25.3
TBVpS5.03
PEG (NY)0.99
PEG (5Y)0.91
Graham Number47.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 8.87% | ||
| ROCE | 10.85% | ||
| ROIC | 8.38% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 86.58% | ||
| OM | 14.85% | ||
| PM (TTM) | 11.66% | ||
| GM | 68.45% | ||
| FCFM | 20.33% |
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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.23% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.89% | ||
| Profit Quality | 174.46% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 10.82 |
F-Score7
WACC10.98%
ROIC/WACC0.76
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)20.72%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%22.83%
EPS Next Y20.32%
EPS Next 2Y15.6%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
Revenue Next Year18.74%
Revenue Next 2Y13.33%
Revenue Next 3Y11.71%
Revenue Next 5YN/A
EBIT growth 1Y24.52%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.78%
EBIT Next 3Y24.03%
EBIT Next 5YN/A
FCF growth 1Y46.06%
FCF growth 3Y13.76%
FCF growth 5Y18.74%
OCF growth 1Y40.93%
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 6 / 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 20.32% in the next year.