SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
111 USD
-1.24 (-1.1%)
111 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 285 industry peers in the Software industry. SPSC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SPSC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes SPSC very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SPSC was profitable.
In the past year SPSC had a positive cash flow from operations.
In the past 5 years SPSC has always been profitable.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPSC has a better Return On Assets (7.40%) than 80.00% of its industry peers.
The Return On Equity of SPSC (8.73%) is better than 74.04% of its industry peers.
With a decent Return On Invested Capital value of 8.15%, SPSC is doing good in the industry, outperforming 79.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 11.88%.
| 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 74.04% 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 81.05% of its industry peers.
SPSC's Operating Margin has been stable in the last couple of years.
The Gross Margin of SPSC (68.17%) 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 | 14.6% | ||
| 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
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.
The number of shares outstanding for SPSC has been increased compared to 5 years ago.
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 16.27 indicates that SPSC is not in any danger for bankruptcy at the moment.
SPSC has a Altman-Z score of 16.27. This is amongst the best in the industry. SPSC outperforms 91.93% 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 | 16.27 |
ROIC/WACC0.74
WACC11%
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 has a Current ratio (1.82) which is comparable to the rest of the industry.
A Quick Ratio of 1.82 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC's Quick ratio of 1.82 is in line compared to the rest of the industry. SPSC outperforms 57.89% of its industry peers.
| 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.
Looking at the last year, SPSC shows a very strong growth in Revenue. The Revenue has grown by 20.50%.
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)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
Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.67% on average per year.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.72% yearly.
EPS Next Y18.78%
EPS Next 2Y16.14%
EPS Next 3Y16.67%
EPS Next 5YN/A
Revenue Next Year19.7%
Revenue Next 2Y14.31%
Revenue Next 3Y12.72%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.13 indicates a quite expensive valuation of SPSC.
68.42% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (27.08), we can say SPSC is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.72, SPSC is valued on the expensive side.
SPSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 69.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (23.09), we can say SPSC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 23.72 |
4.2 Price Multiples
SPSC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 77.89% of the companies in the same industry.
SPSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 26.55 |
4.3 Compensation for Growth
SPSC's 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.
SPSC's earnings are expected to grow with 16.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)1.32
EPS Next 2Y16.14%
EPS Next 3Y16.67%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111
-1.24 (-1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.72%
Ins Owners0.64%
Ins Owner Change0.09%
Market Cap4.21B
Revenue(TTM)703.54M
Net Income(TTM)82.95M
Analysts77.89
Price Target153.98 (38.72%)
Short Float %5.7%
Short Ratio5.25
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)-2.69%
PT rev (3m)-15.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 23.72 | ||
| P/S | 5.98 | ||
| P/FCF | 29.65 | ||
| P/OCF | 25.32 | ||
| P/B | 4.43 | ||
| P/tB | 24.88 | ||
| EV/EBITDA | 26.55 |
EPS(TTM)3.81
EY3.43%
EPS(NY)4.68
Fwd EY4.22%
FCF(TTM)3.74
FCFY3.37%
OCF(TTM)4.38
OCFY3.95%
SpS18.56
BVpS25.05
TBVpS4.46
PEG (NY)1.55
PEG (5Y)1.32
Graham Number46.34
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%
ROICexgc growth 3Y10.82%
ROICexgc 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 | 16.27 |
F-Score6
WACC11%
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 2Y16.14%
EPS Next 3Y16.67%
EPS Next 5YN/A
Revenue 1Y (TTM)20.5%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%22.01%
Revenue Next Year19.7%
Revenue Next 2Y14.31%
Revenue Next 3Y12.72%
Revenue Next 5YN/A
EBIT growth 1Y25.21%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.78%
EBIT Next 3Y24.03%
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%
SPS COMMERCE INC / SPSC FAQ
Can you provide the ChartMill fundamental rating for SPS COMMERCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SPSC.
Can you provide the valuation status for SPS COMMERCE INC?
ChartMill assigns a valuation rating of 4 / 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 6 / 10.
What is the financial health of SPS COMMERCE INC (SPSC) stock?
The financial health rating of SPS COMMERCE INC (SPSC) is 7 / 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 18.78% in the next year.