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SPS COMMERCE INC (SPSC) Stock Fundamental Analysis

NASDAQ:SPSC - Nasdaq - US78463M1071 - Common Stock - Currency: USD

112.85  +1.41 (+1.27%)

Fundamental Rating

6

SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 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!


Dividend Valuation Growth Profitability Health

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6

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

The Return On Assets of SPSC (7.40%) is better than 79.86% of its industry peers.
SPSC's Return On Equity of 8.73% is fine compared to the rest of the industry. SPSC outperforms 74.56% of its industry peers.
The Return On Invested Capital of SPSC (8.15%) is better than 80.57% 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 11.99%.
Industry RankSector 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%
SPSC Yearly ROA, ROE, ROICSPSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

SPSC has a better Profit Margin (11.79%) than 75.27% of its industry peers.
SPSC's Profit Margin has been stable in the last couple of years.
SPSC has a better Operating Margin (14.60%) than 81.27% of its industry peers.
SPSC's Operating Margin has been stable in the last couple of years.
The Gross Margin of SPSC (68.17%) is comparable to the rest of the industry.
SPSC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SPSC Yearly Profit, Operating, Gross MarginsSPSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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7

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.
The number of shares outstanding for SPSC has been increased compared to 1 year ago.
SPSC has more shares outstanding than it did 5 years ago.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
SPSC Yearly Total Debt VS Total AssetsSPSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 16.35 indicates that SPSC is not in any danger for bankruptcy at the moment.
SPSC's Altman-Z score of 16.35 is amongst the best of the industry. SPSC outperforms 92.58% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 16.35
ROIC/WACC0.72
WACC11.32%
SPSC Yearly LT Debt VS Equity VS FCFSPSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.82 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC's Current ratio of 1.82 is in line compared to the rest of the industry. SPSC outperforms 56.89% of 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 56.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.82
SPSC Yearly Current Assets VS Current LiabilitesSPSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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8

3. Growth

3.1 Past

SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.57%, 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 22.07% 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

Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.42% on average per year.
Based on estimates for the next years, SPSC will show a quite strong growth in Revenue. The Revenue will grow by 15.40% on average per year.
EPS Next Y15.68%
EPS Next 2Y15.42%
EPS Next 3Y16.42%
EPS Next 5YN/A
Revenue Next Year19.55%
Revenue Next 2Y16.13%
Revenue Next 3Y15.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SPSC Yearly Revenue VS EstimatesSPSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
SPSC Yearly EPS VS EstimatesSPSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 29.62, SPSC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than 66.08% 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 26.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.41, the valuation of SPSC can be described as rather expensive.
71.38% of the companies in the same industry are more expensive than SPSC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (34.94), we can say SPSC is valued slightly cheaper.
Industry RankSector Rank
PE 29.62
Fwd PE 24.41
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 a bit cheaper than 74.91% of the companies in the same industry.
73.50% of the companies in the same industry are more expensive than SPSC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.2
EV/EBITDA 26.7
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.42% in the coming years.
PEG (NY)1.89
PEG (5Y)1.34
EPS Next 2Y15.42%
EPS Next 3Y16.42%

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0

5. Dividend

5.1 Amount

No dividends for SPSC!.
Industry RankSector Rank
Dividend Yield N/A

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SPS COMMERCE INC

NASDAQ:SPSC (8/21/2025, 3:51:56 PM)

112.85

+1.41 (+1.27%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-30 2025-07-30/amc
Earnings (Next)10-22 2025-10-22/amc
Inst Owners102.37%
Inst Owner Change4.19%
Ins Owners0.64%
Ins Owner Change120.3%
Market Cap4.29B
Analysts78.95
Price Target158.23 (40.21%)
Short Float %4.71%
Short Ratio4.36
Dividend
Industry RankSector 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)-13.46%
PT rev (3m)-16.03%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 29.62
Fwd PE 24.41
P/S 6.09
P/FCF 30.2
P/OCF 25.79
P/B 4.51
P/tB 25.34
EV/EBITDA 26.7
EPS(TTM)3.81
EY3.38%
EPS(NY)4.62
Fwd EY4.1%
FCF(TTM)3.74
FCFY3.31%
OCF(TTM)4.38
OCFY3.88%
SpS18.52
BVpS25.01
TBVpS4.45
PEG (NY)1.89
PEG (5Y)1.34
Profitability
Industry RankSector 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 RankSector 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 16.35
F-Score6
WACC11.32%
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 Y15.68%
EPS Next 2Y15.42%
EPS Next 3Y16.42%
EPS Next 5YN/A
Revenue 1Y (TTM)20.5%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%22.01%
Revenue Next Year19.55%
Revenue Next 2Y16.13%
Revenue Next 3Y15.4%
Revenue Next 5YN/A
EBIT growth 1Y25.21%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.5%
EBIT Next 3Y23.71%
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%