SPS COMMERCE INC (SPSC)
US78463M1071 - Common Stock
SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. SPSC gets an excellent profitability rating and is at the same time showing great financial health properties. SPSC is valued quite expensively, but it does show have an excellent growth rating. This makes SPSC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year SPSC was profitable.
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
With an excellent Return On Assets value of 7.82%, SPSC belongs to the best of the industry, outperforming 82.80% of the companies in the same industry.
With a decent Return On Equity value of 9.47%, SPSC is doing good in the industry, outperforming 77.78% of the companies in the same industry.
SPSC has a better Return On Invested Capital (7.83%) than 81.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 12.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 9.47% | ||
| ROIC | 7.83% |
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
With an excellent Profit Margin value of 12.83%, SPSC belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SPSC has grown nicely.
With an excellent Operating Margin value of 14.22%, SPSC belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
SPSC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 66.63%, SPSC perfoms like the industry average, outperforming 48.03% of the companies in the same industry.
SPSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.22% | ||
| PM (TTM) | 12.83% | ||
| GM | 66.63% |
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
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.
2.2 Solvency
An Altman-Z score of 25.98 indicates that SPSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPSC (25.98) is better than 93.55% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 25.98 |
ROIC/WACC0.66
WACC11.91%
2.3 Liquidity
A Current Ratio of 2.36 indicates that SPSC has no problem at all paying its short term obligations.
The Current ratio of SPSC (2.36) is better than 65.23% of its industry peers.
A Quick Ratio of 2.36 indicates that SPSC has no problem at all paying its short term obligations.
The Quick ratio of SPSC (2.36) is better than 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.53% over the past year.
The Earnings Per Share has been growing by 24.27% on average over the past years. This is a very strong growth
SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.03%.
SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.69% yearly.
EPS 1Y (TTM)21.53%
EPS 3Y22.92%
EPS 5Y24.27%
EPS Q2Q%22.67%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y19.76%
Revenue growth 5Y16.69%
Sales Q2Q%20.66%
3.2 Future
The Earnings Per Share is expected to grow by 17.34% on average over the next years. This is quite good.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.14% yearly.
EPS Next Y22.46%
EPS Next 2Y17.94%
EPS Next 3Y18.39%
EPS Next 5Y17.34%
Revenue Next Year18.91%
Revenue Next 2Y17.58%
Revenue Next 3Y16.77%
Revenue Next 5Y16.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 56.55, which means the current valuation is very expensive for SPSC.
The rest of the industry has a similar Price/Earnings ratio as SPSC.
The average S&P500 Price/Earnings ratio is at 27.20. SPSC is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 47.34, SPSC can be considered very expensive at the moment.
SPSC's Price/Forward Earnings ratio is in line with the industry average.
SPSC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.55 | ||
| Fwd PE | 47.34 |
4.2 Price Multiples
SPSC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 67.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than 61.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.79 | ||
| EV/EBITDA | 54.32 |
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 18.39% in the coming years.
PEG (NY)2.52
PEG (5Y)2.33
EPS Next 2Y17.94%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPS COMMERCE INC
NASDAQ:SPSC (12/20/2024, 8:00:02 PM)
After market: 188.323 0 (0%)188.32
-1.98 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.6%
Inst Owner Change3.53%
Ins Owners0.7%
Ins Owner Change-2.1%
Market Cap7.08B
Analysts78.82
Price Target227.15 (20.62%)
Short Float %2.56%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)5.6%
Min EPS beat(2)2.14%
Max EPS beat(2)9.06%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)2.14%
Max EPS beat(4)14.68%
EPS beat(8)8
Avg EPS beat(8)9.62%
EPS beat(12)12
Avg EPS beat(12)10.35%
EPS beat(16)16
Avg EPS beat(16)10.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.41%
PT rev (1m)-1.12%
PT rev (3m)-1.12%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.55 | ||
| Fwd PE | 47.34 | ||
| P/S | 11.56 | ||
| P/FCF | 53.79 | ||
| P/OCF | 47.28 | ||
| P/B | 8.53 | ||
| P/tB | 29.76 | ||
| EV/EBITDA | 54.32 |
EPS(TTM)3.33
EY1.77%
EPS(NY)3.98
Fwd EY2.11%
FCF(TTM)3.5
FCFY1.86%
OCF(TTM)3.98
OCFY2.11%
SpS16.28
BVpS22.08
TBVpS6.33
PEG (NY)2.52
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 9.47% | ||
| ROCE | 10.15% | ||
| ROIC | 7.83% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 112.67% | ||
| OM | 14.22% | ||
| PM (TTM) | 12.83% | ||
| GM | 66.63% | ||
| FCFM | 21.5% |
ROA(3y)7.81%
ROA(5y)7.92%
ROE(3y)9.78%
ROE(5y)9.93%
ROIC(3y)8.88%
ROIC(5y)8.62%
ROICexc(3y)15.55%
ROICexc(5y)15.89%
ROICexgc(3y)88.43%
ROICexgc(5y)74.12%
ROCE(3y)11.52%
ROCE(5y)11.18%
ROICexcg growth 3Y17.05%
ROICexcg growth 5Y22.68%
ROICexc growth 3Y-1.57%
ROICexc growth 5Y0.93%
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%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.03% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.45% | ||
| Profit Quality | 167.56% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 25.98 |
F-Score6
WACC11.91%
ROIC/WACC0.66
Cap/Depr(3y)68.72%
Cap/Depr(5y)75.56%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.67%
Profit Quality(3y)175.24%
Profit Quality(5y)171.31%
High Growth Momentum
Growth
EPS 1Y (TTM)21.53%
EPS 3Y22.92%
EPS 5Y24.27%
EPS Q2Q%22.67%
EPS Next Y22.46%
EPS Next 2Y17.94%
EPS Next 3Y18.39%
EPS Next 5Y17.34%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y19.76%
Revenue growth 5Y16.69%
Sales Q2Q%20.66%
Revenue Next Year18.91%
Revenue Next 2Y17.58%
Revenue Next 3Y16.77%
Revenue Next 5Y16.15%
EBIT growth 1Y18.72%
EBIT growth 3Y15.45%
EBIT growth 5Y23.67%
EBIT Next Year34.39%
EBIT Next 3Y23.8%
EBIT Next 5Y21.53%
FCF growth 1Y46.32%
FCF growth 3Y16%
FCF growth 5Y22.26%
OCF growth 1Y38.81%
OCF growth 3Y14.3%
OCF growth 5Y19.19%