SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation

NASDAQ:SPSC • US78463M1071

Current stock price

55.1 USD
+0.1 (+0.18%)
At close:
55.1 USD
0 (0%)
After Hours:

This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SPSC Profitability Analysis

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.
  • Each year in the past 5 years SPSC had a positive operating cash flow.
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 82.01% of its industry peers.
  • SPSC has a Return On Equity of 9.58%. This is in the better half of the industry: SPSC outperforms 74.46% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.90%, SPSC belongs to the best of the industry, outperforming 83.45% of the companies in the same industry.
  • SPSC had an Average Return On Invested Capital over the past 3 years of 8.37%. This is below the industry average of 10.92%.
  • 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

  • SPSC has a Profit Margin of 12.42%. This is in the better half of the industry: SPSC outperforms 76.26% of its industry peers.
  • In the last couple of years the Profit Margin of SPSC has declined.
  • SPSC has a better Operating Margin (15.74%) than 83.09% 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 (69.18%) which is comparable to the rest of the industry.
  • 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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8

2. SPSC Health Analysis

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 7.97 indicates that SPSC is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.97, SPSC belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
  • 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 7.97
ROIC/WACC0.82
WACC10.92%
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

  • SPSC has a Current Ratio of 2.17. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.17, SPSC is in the better half of the industry, outperforming 62.23% of the companies in the same industry.
  • SPSC has a Quick Ratio of 2.17. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of SPSC (2.17) is better than 62.59% 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. SPSC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.05% over the past year.
  • SPSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.63% yearly.
  • SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.83%.
  • The Revenue has been growing by 19.18% on average over the past years. This is quite good.
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

  • SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% yearly.
  • SPSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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 2028 1 2 3 4 5

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6

4. SPSC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.90, which indicates a correct valuation of SPSC.
  • Based on the Price/Earnings ratio, SPSC is valued cheaply inside the industry as 83.45% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (25.23), we can say SPSC is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 12.03, SPSC is valued correctly.
  • Based on the Price/Forward Earnings ratio, SPSC is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (22.51), we can say SPSC is valued slightly cheaper.
Industry RankSector Rank
PE 12.9
Fwd PE 12.03
SPSC Price Earnings VS Forward Price EarningsSPSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaper than 85.25% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SPSC is valued cheaper than 82.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.53
EV/EBITDA 10.79
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)1.78
PEG (5Y)0.57
EPS Next 2Y10.16%
EPS Next 3Y11.98%

More info and screens

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

0

5. SPSC Dividend Analysis

5.1 Amount

  • No dividends for SPSC!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SPSC Fundamentals: All Metrics, Ratios and Statistics

SPS COMMERCE INC

NASDAQ:SPSC (3/26/2026, 8:00:02 PM)

After market: 55.1 0 (0%)

55.1

+0.1 (+0.18%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners105.78%
Inst Owner Change-2.48%
Ins Owners0.97%
Ins Owner Change12.48%
Market Cap2.06B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (60.62%)
Short Float %5.88%
Short Ratio2.74
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)-1.99%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE 12.9
Fwd PE 12.03
P/S 2.74
P/FCF 13.53
P/OCF 11.52
P/B 2.12
P/tB 9.52
EV/EBITDA 10.79
EPS(TTM)4.27
EY7.75%
EPS(NY)4.58
Fwd EY8.31%
FCF(TTM)4.07
FCFY7.39%
OCF(TTM)4.78
OCFY8.68%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)1.78
PEG (5Y)0.57
Graham Number50.02
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 7.97
F-Score8
WACC10.92%
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 Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year6.59%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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 Fundamental Analysis 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 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 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 7.27% in the next year.