94.49 USD
+1.24 (+1.33%)
94.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SPSC. SPSC was compared to 276 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! With these ratings, SPSC could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
SPSC had positive earnings in the past year.
SPSC had a positive operating cash flow in the past year.
Each year in the past 5 years SPSC has been profitable.
Each year in the past 5 years SPSC had a positive operating cash flow.
1.2 Ratios
SPSC has a Return On Assets of 7.34%. This is in the better half of the industry: SPSC outperforms 77.17% of its industry peers.
Looking at the Return On Equity, with a value of 8.87%, SPSC is in the better half of the industry, outperforming 72.10% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.38%, SPSC is doing good in the industry, outperforming 79.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 10.78%.
| 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
SPSC has a better Profit Margin (11.66%) than 71.74% of its industry peers.
In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 14.85%, SPSC belongs to the top of the industry, outperforming 81.16% 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.
SPSC has a Gross Margin (68.45%) which is in line with 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
SPSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SPSC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPSC has more shares outstanding
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 12.15 indicates that SPSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPSC (12.15) is better than 92.03% of its industry peers.
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 | 12.15 |
ROIC/WACC0.76
WACC10.97%
2.3 Liquidity
A Current Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC has a Current ratio of 1.97. This is comparable to the rest of the industry: SPSC outperforms 58.70% of its industry peers.
A Quick Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.97, SPSC is in line with its industry, outperforming 59.42% of the companies in the same 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.
SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.28%.
SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.97% yearly.
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 14.87% on average per year.
The Revenue is expected to grow by 10.83% on average over the next years. This is quite good.
EPS Next Y21.39%
EPS Next 2Y15.4%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue Next Year18.26%
Revenue Next 2Y12.68%
Revenue Next 3Y10.83%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.50, SPSC is valued on the expensive side.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than 71.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SPSC is valued at the same level.
A Price/Forward Earnings ratio of 20.45 indicates a rather expensive valuation of SPSC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 73.91% of the companies listed in the same industry.
SPSC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than the industry average as 76.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than the industry average as 75.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.01 | ||
| EV/EBITDA | 20.65 |
4.3 Compensation for Growth
The 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 14.87% in the coming years.
PEG (NY)1.1
PEG (5Y)1.06
EPS Next 2Y15.4%
EPS Next 3Y14.87%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
94.49
+1.24 (+1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.27%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change1.21%
Market Cap3.56B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts74.74
Price Target103.38 (9.41%)
Short Float %6.04%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)-32.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.96%
EPS NY rev (1m)0%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 20.45 | ||
| P/S | 4.88 | ||
| P/FCF | 24.01 | ||
| P/OCF | 20.54 | ||
| P/B | 3.72 | ||
| P/tB | 18.69 | ||
| EV/EBITDA | 20.65 |
EPS(TTM)4.02
EY4.25%
EPS(NY)4.62
Fwd EY4.89%
FCF(TTM)3.94
FCFY4.16%
OCF(TTM)4.6
OCFY4.87%
SpS19.35
BVpS25.43
TBVpS5.06
PEG (NY)1.1
PEG (5Y)1.06
Graham Number47.96
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 | 12.15 |
F-Score7
WACC10.97%
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 Y21.39%
EPS Next 2Y15.4%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
Revenue Next Year18.26%
Revenue Next 2Y12.68%
Revenue Next 3Y10.83%
Revenue Next 5YN/A
EBIT growth 1Y24.52%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year40.72%
EBIT Next 3Y21.87%
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.
What is the valuation status for SPSC stock?
ChartMill assigns a valuation rating of 5 / 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 21.39% in the next year.