SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
108.65 USD
+1.45 (+1.35%)
108.65 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 280 industry peers in the Software industry. SPSC has an excellent financial health rating, but there are some minor concerns on its profitability. SPSC is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, SPSC could be worth investigating further for growth 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.
In the past 5 years SPSC has always been profitable.
In the past 5 years SPSC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.40%, SPSC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Equity value of 8.73%, SPSC is doing good in the industry, outperforming 74.29% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.15%, SPSC is doing good in the industry, outperforming 79.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 11.76%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of SPSC (11.79%) is better than 74.29% of its industry peers.
In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
SPSC has a better Operating Margin (14.60%) than 80.71% of its industry peers.
SPSC's Operating Margin has been stable in the last couple of years.
SPSC has a Gross Margin (68.17%) which is in line with its industry peers.
SPSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for SPSC has been increased compared to 5 years ago.
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 15.76. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
SPSC has a better Altman-Z score (15.76) than 92.50% 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 | 15.76 |
ROIC/WACC0.74
WACC11.03%
2.3 Liquidity
SPSC has a Current 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 Current ratio of 1.82 is in line compared to the rest of the industry. SPSC outperforms 57.86% 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.
Looking at the Quick ratio, with a value of 1.82, SPSC is in line with its industry, outperforming 58.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.57% 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.
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
The Earnings Per Share is expected to grow by 16.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.00% on average over the next years. This is quite good.
EPS Next Y18.78%
EPS Next 2Y16.15%
EPS Next 3Y16.61%
EPS Next 5YN/A
Revenue Next Year19.69%
Revenue Next 2Y14.42%
Revenue Next 3Y13%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.52 indicates a quite expensive valuation of SPSC.
68.57% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
SPSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
SPSC is valuated rather expensively with a Price/Forward Earnings ratio of 23.21.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 72.14% of the companies are valued more expensively.
SPSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 23.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than 76.43% of the companies 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 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.02 | ||
| EV/EBITDA | 25.61 |
4.3 Compensation for Growth
SPSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 16.61% in the coming years.
PEG (NY)1.52
PEG (5Y)1.29
EPS Next 2Y16.15%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.65
+1.45 (+1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners102.37%
Inst Owner Change4.19%
Ins Owners0.64%
Ins Owner Change0.16%
Market Cap4.12B
Analysts77.89
Price Target158.23 (45.63%)
Short Float %5.08%
Short Ratio4.29
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)-13.46%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)2.68%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 23.21 | ||
| P/S | 5.85 | ||
| P/FCF | 29.02 | ||
| P/OCF | 24.78 | ||
| P/B | 4.34 | ||
| P/tB | 24.35 | ||
| EV/EBITDA | 25.61 |
EPS(TTM)3.81
EY3.51%
EPS(NY)4.68
Fwd EY4.31%
FCF(TTM)3.74
FCFY3.45%
OCF(TTM)4.38
OCFY4.03%
SpS18.56
BVpS25.05
TBVpS4.46
PEG (NY)1.52
PEG (5Y)1.29
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 15.76 |
F-Score6
WACC11.03%
ROIC/WACC0.74
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 Y18.78%
EPS Next 2Y16.15%
EPS Next 3Y16.61%
EPS Next 5YN/A
Revenue 1Y (TTM)20.5%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%22.01%
Revenue Next Year19.69%
Revenue Next 2Y14.42%
Revenue Next 3Y13%
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%