SPS COMMERCE INC (SPSC)
US78463M1071 - Common Stock
SPSC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 275 industry peers in the Software industry. SPSC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SPSC is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make SPSC a good candidate for growth and quality 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.
SPSC had positive earnings in each of the past 5 years.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SPSC (7.99%) is better than 88.00% of its industry peers.
SPSC has a Return On Equity of 9.86%. This is amongst the best in the industry. SPSC outperforms 84.00% of its industry peers.
SPSC has a better Return On Invested Capital (8.59%) than 86.91% of its industry peers.
SPSC had an Average Return On Invested Capital over the past 3 years of 8.88%. This is in line with the industry average of 10.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 9.86% | ||
| ROIC | 8.59% |
ROA(3y)7.81%
ROA(5y)7.92%
ROE(3y)9.78%
ROE(5y)9.93%
ROIC(3y)8.88%
ROIC(5y)8.62%
1.3 Margins
SPSC has a better Profit Margin (12.26%) than 84.36% of its industry peers.
In the last couple of years the Profit Margin of SPSC has grown nicely.
SPSC has a Operating Margin of 14.37%. This is amongst the best in the industry. SPSC outperforms 85.09% of its industry peers.
In the last couple of years the Operating Margin of SPSC has grown nicely.
SPSC has a Gross Margin (66.08%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.37% | ||
| PM (TTM) | 12.26% | ||
| GM | 66.08% |
OM growth 3Y-3.6%
OM growth 5Y5.99%
PM growth 3Y-5.63%
PM growth 5Y4.95%
GM growth 3Y-0.98%
GM growth 5Y-0.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
The number of shares outstanding for SPSC has been increased compared to 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
SPSC has an Altman-Z score of 24.73. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPSC (24.73) is better than 97.82% 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 | 24.73 |
ROIC/WACC0.87
WACC9.92%
2.3 Liquidity
SPSC has a Current Ratio of 3.07. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
SPSC has a Current ratio of 3.07. This is in the better half of the industry: SPSC outperforms 75.64% of its industry peers.
A Quick Ratio of 3.07 indicates that SPSC has no problem at all paying its short term obligations.
SPSC has a better Quick ratio (3.07) than 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 3.07 |
3. Growth
3.1 Past
SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.22%, which is quite impressive.
SPSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.27% yearly.
The Revenue has grown by 19.09% in the past year. This is quite good.
Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 16.69% on average per year.
EPS 1Y (TTM)22.22%
EPS 3Y22.92%
EPS 5Y24.27%
EPS growth Q2Q19.05%
Revenue 1Y (TTM)19.09%
Revenue growth 3Y19.76%
Revenue growth 5Y16.69%
Revenue growth Q2Q18.82%
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 14.77% yearly.
The Revenue is expected to grow by 14.72% on average over the next years. This is quite good.
EPS Next Y12.56%
EPS Next 2Y15.56%
EPS Next 3Y14.77%
EPS Next 5YN/A
Revenue Next Year15.68%
Revenue Next 2Y15.25%
Revenue Next 3Y14.72%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.04, SPSC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than the industry average as 62.91% of the companies are valued more expensively.
SPSC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.83.
A Price/Forward Earnings ratio of 50.68 indicates a quite expensive valuation of SPSC.
SPSC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, SPSC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.04 | ||
| Fwd PE | 50.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than the industry average as 60.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.59 | ||
| EV/EBITDA | 50.44 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
SPSC's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.54
PEG (5Y)2.35
EPS Next 2Y15.56%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPS COMMERCE INC
NASDAQ:SPSC (4/18/2024, 3:20:00 PM)
After market: 163.13 0 (0%)163.13
+1.43 (+0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.04 | ||
| Fwd PE | 50.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.54
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 9.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.37% | ||
| PM (TTM) | 12.26% | ||
| GM | 66.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 3.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.22%
EPS 3Y22.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.09%
Revenue growth 3Y19.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y