SPS COMMERCE INC (SPSC) Stock Fundamental Analysis

NASDAQ:SPSC • US78463M1071

56.51 USD
-0.74 (-1.29%)
At close: Feb 27, 2026
56.84 USD
+0.33 (+0.58%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall SPSC gets a fundamental rating of 7 out of 10. We evaluated SPSC against 275 industry peers in the Software industry. SPSC gets an excellent profitability rating and is at the same time showing great financial health properties. SPSC is valued quite cheap, while showing a decent growth score. This is a good combination! This makes SPSC very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year SPSC was profitable.
  • SPSC had a positive operating cash flow in the past year.
  • 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.
SPSC Yearly Net Income VS EBIT VS OCF VS FCFSPSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • SPSC's Return On Assets of 7.98% is amongst the best of the industry. SPSC outperforms 82.25% of its industry peers.
  • The Return On Equity of SPSC (9.58%) is better than 73.91% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.90%, SPSC belongs to the best of the industry, outperforming 83.70% 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 10.80%.
  • The last Return On Invested Capital (8.90%) for SPSC is above the 3 year average (8.37%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.98%
ROE 9.58%
ROIC 8.9%
ROA(3y)7.81%
ROA(5y)7.77%
ROE(3y)9.49%
ROE(5y)9.59%
ROIC(3y)8.37%
ROIC(5y)8.6%
SPSC Yearly ROA, ROE, ROICSPSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.42%, SPSC is in the better half of the industry, outperforming 74.64% of the companies in the same industry.
  • SPSC's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 15.74%, SPSC belongs to the best of the industry, outperforming 82.97% 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 (69.18%) 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 RankSector Rank
OM 15.74%
PM (TTM) 12.42%
GM 69.18%
OM growth 3Y-0.1%
OM growth 5Y-0.4%
PM growth 3Y0.54%
PM growth 5Y-3.17%
GM growth 3Y1.56%
GM growth 5Y0.32%
SPSC Yearly Profit, Operating, Gross MarginsSPSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPSC is destroying value.
  • The number of shares outstanding for SPSC has been reduced compared to 1 year ago.
  • Compared to 5 years ago, SPSC has more shares outstanding
  • SPSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SPSC Yearly Shares OutstandingSPSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
SPSC Yearly Total Debt VS Total AssetsSPSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 8.20 indicates that SPSC is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of SPSC (8.20) is better than 88.77% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.2
ROIC/WACC0.82
WACC10.9%
SPSC Yearly LT Debt VS Equity VS FCFSPSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.17, SPSC is doing good in the industry, outperforming 61.59% of the companies in the same industry.
  • A Quick Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
  • The Quick ratio of SPSC (2.17) is better than 61.96% of its industry peers.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 2.17
SPSC Yearly Current Assets VS Current LiabilitesSPSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.05%, which is quite impressive.
  • Measured over the past years, SPSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.63% on average per year.
  • The Revenue has grown by 17.83% in the past year. This is quite good.
  • SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.18% yearly.
EPS 1Y (TTM)23.05%
EPS 3Y22.2%
EPS 5Y22.63%
EPS Q2Q%28.09%
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.68% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SPSC Yearly Revenue VS EstimatesSPSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
SPSC Yearly EPS VS EstimatesSPSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.23, SPSC is valued correctly.
  • 82.61% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (27.10), we can say SPSC is valued rather cheaply.
  • SPSC is valuated correctly with a Price/Forward Earnings ratio of 12.23.
  • Based on the Price/Forward Earnings ratio, SPSC is valued cheaper than 80.80% of the companies in the same industry.
  • SPSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.23
Fwd PE 12.23
SPSC Price Earnings VS Forward Price EarningsSPSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaper than 85.14% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SPSC is valued cheaper than 82.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14
EV/EBITDA 11.21
SPSC Per share dataSPSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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.
PEG (NY)1.62
PEG (5Y)0.58
EPS Next 2Y10.98%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SPSC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SPS COMMERCE INC

NASDAQ:SPSC (2/27/2026, 8:00:02 PM)

After market: 56.84 +0.33 (+0.58%)

56.51

-0.74 (-1.29%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners107.27%
Inst Owner Change-2.51%
Ins Owners0.88%
Ins Owner Change1.21%
Market Cap2.13B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target88.5 (56.61%)
Short Float %5.73%
Short Ratio3.34
Dividend
Industry RankSector 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)10.95%
Min EPS beat(2)10.84%
Max EPS beat(2)11.06%
EPS beat(4)4
Avg EPS beat(4)11.45%
Min EPS beat(4)8.18%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)9.07%
EPS beat(12)12
Avg EPS beat(12)9.05%
EPS beat(16)16
Avg EPS beat(16)10.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-2.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.76%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)2
Avg Revenue beat(16)-1.07%
PT rev (1m)-15.77%
PT rev (3m)-14.39%
EPS NQ rev (1m)-9.43%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.42%
Valuation
Industry RankSector Rank
PE 13.23
Fwd PE 12.23
P/S 2.84
P/FCF 14
P/OCF 11.92
P/B 2.19
P/tB 9.85
EV/EBITDA 11.21
EPS(TTM)4.27
EY7.56%
EPS(NY)4.62
Fwd EY8.18%
FCF(TTM)4.04
FCFY7.15%
OCF(TTM)4.74
OCFY8.39%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.62
PEG (5Y)0.58
Graham Number49.81
Profitability
Industry RankSector Rank
ROA 7.98%
ROE 9.58%
ROCE 11.65%
ROIC 8.9%
ROICexc 10.46%
ROICexgc 84.79%
OM 15.74%
PM (TTM) 12.42%
GM 69.18%
FCFM 20.26%
ROA(3y)7.81%
ROA(5y)7.77%
ROE(3y)9.49%
ROE(5y)9.59%
ROIC(3y)8.37%
ROIC(5y)8.6%
ROICexc(3y)11.72%
ROICexc(5y)13.45%
ROICexgc(3y)96.31%
ROICexgc(5y)91.08%
ROCE(3y)10.95%
ROCE(5y)11.25%
ROICexgc growth 3Y-0.98%
ROICexgc growth 5Y7.12%
ROICexc growth 3Y-12.53%
ROICexc growth 5Y-6.72%
OM growth 3Y-0.1%
OM growth 5Y-0.4%
PM growth 3Y0.54%
PM growth 5Y-3.17%
GM growth 3Y1.56%
GM growth 5Y0.32%
F-Score8
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 45.53%
Cap/Sales 3.53%
Interest Coverage 250
Cash Conversion 101.26%
Profit Quality 163.13%
Current Ratio 2.17
Quick Ratio 2.17
Altman-Z 8.2
F-Score8
WACC10.9%
ROIC/WACC0.82
Cap/Depr(3y)49.96%
Cap/Depr(5y)59.83%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.97%
Profit Quality(3y)170.78%
Profit Quality(5y)173.42%
High Growth Momentum
Growth
EPS 1Y (TTM)23.05%
EPS 3Y22.2%
EPS 5Y22.63%
EPS Q2Q%28.09%
EPS Next Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
Revenue Next 5YN/A
EBIT growth 1Y33.1%
EBIT growth 3Y18.44%
EBIT growth 5Y18.7%
EBIT Next Year27.73%
EBIT Next 3Y18.17%
EBIT Next 5YN/A
FCF growth 1Y10.86%
FCF growth 3Y23.83%
FCF growth 5Y16.13%
OCF growth 1Y13.59%
OCF growth 3Y21.33%
OCF growth 5Y15.08%

SPS COMMERCE INC / SPSC FAQ

Can you provide the ChartMill fundamental rating for SPS COMMERCE INC?

ChartMill assigns a fundamental rating of 7 / 10 to SPSC.


What is the valuation status for SPSC stock?

ChartMill assigns a valuation rating of 7 / 10 to SPS COMMERCE INC (SPSC). This can be considered as Undervalued.


How profitable is SPS COMMERCE INC (SPSC) stock?

SPS COMMERCE INC (SPSC) has a profitability rating of 7 / 10.


What is the financial health of SPS COMMERCE INC (SPSC) stock?

The financial health rating of SPS COMMERCE INC (SPSC) is 8 / 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 8.19% in the next year.