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SPS COMMERCE INC (SPSC) Stock Fundamental Analysis

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

135.5  +0.86 (+0.64%)

Fundamental Rating

6

Overall SPSC gets a fundamental rating of 6 out of 10. We evaluated SPSC against 284 industry peers in the Software industry. While SPSC has a great health rating, its profitability is only average at the moment. SPSC is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
SPSC had a positive operating cash flow in each of the past 5 years.
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

SPSC has a better Return On Assets (7.33%) than 79.93% of its industry peers.
The Return On Equity of SPSC (8.82%) is better than 76.76% of its industry peers.
SPSC has a Return On Invested Capital of 8.03%. This is amongst the best in the industry. SPSC outperforms 82.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 12.33%.
Industry RankSector Rank
ROA 7.33%
ROE 8.82%
ROIC 8.03%
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

With a decent Profit Margin value of 12.13%, SPSC is doing good in the industry, outperforming 78.17% of the companies in the same industry.
SPSC's Profit Margin has been stable in the last couple of years.
The Operating Margin of SPSC (14.85%) is better than 83.10% 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 (67.73%) which is in line with its industry peers.
SPSC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.85%
PM (TTM) 12.13%
GM 67.73%
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.
Compared to 1 year ago, SPSC has more shares outstanding
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 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 17.77 indicates that SPSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPSC (17.77) is better than 92.96% 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 17.77
ROIC/WACC0.89
WACC9.05%
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

SPSC has a Current Ratio of 1.64. This is a normal value and indicates that SPSC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.64, SPSC is in line with its industry, outperforming 50.35% of the companies in the same industry.
SPSC has a Quick Ratio of 1.64. This is a normal value and indicates that SPSC is financially healthy and should not expect problems in meeting its short term obligations.
SPSC has a Quick ratio (1.64) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.64
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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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.36% over the past year.
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.
Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.46% in the last year.
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)18.36%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%16.28%
Revenue 1Y (TTM)19.46%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%21.38%

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 17.21% yearly.
The Revenue is expected to grow by 15.54% on average over the next years. This is quite good.
EPS Next Y15.84%
EPS Next 2Y15.6%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue Next Year19.55%
Revenue Next 2Y16.11%
Revenue Next 3Y15.54%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 1B
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

SPSC is valuated quite expensively with a Price/Earnings ratio of 37.53.
Compared to the rest of the industry, the Price/Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 65.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (26.57), we can say SPSC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.22, SPSC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than 62.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.41. SPSC is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 37.53
Fwd PE 29.22
SPSC Price Earnings VS Forward Price EarningsSPSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 72.54% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 69.72% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 36.59
EV/EBITDA 34.33
SPSC Per share dataSPSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPSC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SPSC may justify a higher PE ratio.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)2.37
PEG (5Y)1.7
EPS Next 2Y15.6%
EPS Next 3Y17.21%

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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 (6/17/2025, 1:02:48 PM)

135.5

+0.86 (+0.64%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners100.55%
Inst Owner Change-1.79%
Ins Owners0.64%
Ins Owner Change120.31%
Market Cap5.15B
Analysts80
Price Target182.84 (34.94%)
Short Float %3.81%
Short Ratio4.26
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)8.3%
Min EPS beat(2)0.86%
Max EPS beat(2)15.73%
EPS beat(4)4
Avg EPS beat(4)6.95%
Min EPS beat(4)0.86%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)8.12%
EPS beat(12)12
Avg EPS beat(12)9.72%
EPS beat(16)16
Avg EPS beat(16)10.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)-2.98%
PT rev (3m)-10.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 37.53
Fwd PE 29.22
P/S 7.68
P/FCF 36.59
P/OCF 31.51
P/B 5.59
P/tB 38.21
EV/EBITDA 34.33
EPS(TTM)3.61
EY2.66%
EPS(NY)4.64
Fwd EY3.42%
FCF(TTM)3.7
FCFY2.73%
OCF(TTM)4.3
OCFY3.17%
SpS17.63
BVpS24.25
TBVpS3.55
PEG (NY)2.37
PEG (5Y)1.7
Profitability
Industry RankSector Rank
ROA 7.33%
ROE 8.82%
ROCE 10.41%
ROIC 8.03%
ROICexc 8.92%
ROICexgc 103.05%
OM 14.85%
PM (TTM) 12.13%
GM 67.73%
FCFM 21%
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 Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 48.48%
Cap/Sales 3.38%
Interest Coverage 250
Cash Conversion 111.72%
Profit Quality 173.12%
Current Ratio 1.64
Quick Ratio 1.64
Altman-Z 17.77
F-Score6
WACC9.05%
ROIC/WACC0.89
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)18.36%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%16.28%
EPS Next Y15.84%
EPS Next 2Y15.6%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%21.38%
Revenue Next Year19.55%
Revenue Next 2Y16.11%
Revenue Next 3Y15.54%
Revenue Next 5YN/A
EBIT growth 1Y31.03%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.2%
EBIT Next 3Y24.51%
EBIT Next 5YN/A
FCF growth 1Y45.6%
FCF growth 3Y13.76%
FCF growth 5Y18.74%
OCF growth 1Y39.11%
OCF growth 3Y11.71%
OCF growth 5Y17%