SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC • US78463M1071
61.08 USD
-0.84 (-1.36%)
Last: Feb 17, 2026, 02:29 PM
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 276 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 has a decent growth rate and is not valued too expensively. These ratings could make SPSC a good candidate for 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.
- Each year in the past 5 years SPSC has been profitable.
- SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SPSC has a Return On Assets of 7.98%. This is amongst the best in the industry. SPSC outperforms 80.43% of its industry peers.
- The Return On Equity of SPSC (9.58%) is better than 72.46% of its industry peers.
- SPSC has a better Return On Invested Capital (8.90%) than 81.16% of its industry peers.
- SPSC had an Average Return On Invested Capital over the past 3 years of 8.37%. This is below the industry average of 10.64%.
- The last Return On Invested Capital (8.90%) for SPSC is above the 3 year average (8.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 9.58% | ||
| ROIC | 8.9% |
ROA(3y)7.81%
ROA(5y)7.77%
ROE(3y)9.49%
ROE(5y)9.59%
ROIC(3y)8.37%
ROIC(5y)8.6%
1.3 Margins
- Looking at the Profit Margin, with a value of 12.42%, SPSC is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
- SPSC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.74%, SPSC belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
- 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 (69.18%) which is in line with its industry peers.
- 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 | 15.74% | ||
| PM (TTM) | 12.42% | ||
| GM | 69.18% |
OM growth 3Y-0.1%
OM growth 5Y-0.4%
PM growth 3Y0.54%
PM growth 5Y-3.17%
GM growth 3Y1.56%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPSC is destroying value.
- SPSC has about the same amout of shares outstanding than it did 1 year ago.
- SPSC has more shares outstanding than it did 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
- An Altman-Z score of 8.82 indicates that SPSC is not in any danger for bankruptcy at the moment.
- SPSC has a better Altman-Z score (8.82) than 90.58% 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 | 8.82 |
ROIC/WACC0.81
WACC10.99%
2.3 Liquidity
- SPSC has a Current Ratio of 2.17. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.17, SPSC is doing good in the industry, outperforming 62.32% of the companies in the same industry.
- A Quick Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.17, SPSC is doing good in the industry, outperforming 62.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.05% 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 22.63% on average per year.
- The Revenue has grown by 17.83% in the past year. This is quite good.
- The Revenue has been growing by 19.18% on average over the past years. This is quite good.
EPS 1Y (TTM)23.05%
EPS 3Y22.2%
EPS 5Y22.63%
EPS Q2Q%28.09%
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
3.2 Future
- The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.68% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.30, which indicates a correct valuation of SPSC.
- Compared to the rest of the industry, the Price/Earnings ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 80.07% of the companies listed in the same industry.
- SPSC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of SPSC.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than 78.99% of the companies in the same industry.
- SPSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
- 83.70% of the companies in the same industry are more expensive than SPSC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SPSC is valued cheaper than 80.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.13 | ||
| EV/EBITDA | 12.37 |
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.
PEG (NY)1.75
PEG (5Y)0.63
EPS Next 2Y10.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:SPSC (2/17/2026, 2:29:04 PM)
61.08
-0.84 (-1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-22 2026-04-22
Inst Owners107.27%
Inst Owner Change-4.24%
Ins Owners0.88%
Ins Owner Change1.21%
Market Cap2.30B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target105.08 (72.04%)
Short Float %5.73%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)10.95%
Min EPS beat(2)10.84%
Max EPS beat(2)11.06%
EPS beat(4)4
Avg EPS beat(4)11.45%
Min EPS beat(4)8.18%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)9.07%
EPS beat(12)12
Avg EPS beat(12)9.05%
EPS beat(16)16
Avg EPS beat(16)10.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-2.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.76%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)2
Avg Revenue beat(16)-1.07%
PT rev (1m)1.64%
PT rev (3m)-27.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.22 | ||
| P/S | 3.06 | ||
| P/FCF | 15.13 | ||
| P/OCF | 12.88 | ||
| P/B | 2.37 | ||
| P/tB | 10.65 | ||
| EV/EBITDA | 12.37 |
EPS(TTM)4.27
EY6.99%
EPS(NY)4.62
Fwd EY7.56%
FCF(TTM)4.04
FCFY6.61%
OCF(TTM)4.74
OCFY7.76%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.75
PEG (5Y)0.63
Graham Number49.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 9.58% | ||
| ROCE | 11.65% | ||
| ROIC | 8.9% | ||
| ROICexc | 10.46% | ||
| ROICexgc | 84.79% | ||
| OM | 15.74% | ||
| PM (TTM) | 12.42% | ||
| GM | 69.18% | ||
| FCFM | 20.26% |
ROA(3y)7.81%
ROA(5y)7.77%
ROE(3y)9.49%
ROE(5y)9.59%
ROIC(3y)8.37%
ROIC(5y)8.6%
ROICexc(3y)11.72%
ROICexc(5y)13.45%
ROICexgc(3y)96.31%
ROICexgc(5y)91.08%
ROCE(3y)10.95%
ROCE(5y)11.25%
ROICexgc growth 3Y-0.98%
ROICexgc growth 5Y7.12%
ROICexc growth 3Y-12.53%
ROICexc growth 5Y-6.72%
OM growth 3Y-0.1%
OM growth 5Y-0.4%
PM growth 3Y0.54%
PM growth 5Y-3.17%
GM growth 3Y1.56%
GM growth 5Y0.32%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.53% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.26% | ||
| Profit Quality | 163.13% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 8.82 |
F-Score8
WACC10.99%
ROIC/WACC0.81
Cap/Depr(3y)49.96%
Cap/Depr(5y)59.83%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.97%
Profit Quality(3y)170.78%
Profit Quality(5y)173.42%
High Growth Momentum
Growth
EPS 1Y (TTM)23.05%
EPS 3Y22.2%
EPS 5Y22.63%
EPS Q2Q%28.09%
EPS Next Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
Revenue Next 5YN/A
EBIT growth 1Y33.1%
EBIT growth 3Y18.44%
EBIT growth 5Y18.7%
EBIT Next Year28.53%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y10.86%
FCF growth 3Y23.83%
FCF growth 5Y16.13%
OCF growth 1Y13.59%
OCF growth 3Y21.33%
OCF growth 5Y15.08%
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.
What is the valuation status for SPSC stock?
ChartMill assigns a valuation rating of 6 / 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 7 / 10.
What is the financial health of SPS COMMERCE INC (SPSC) stock?
The financial health rating of SPS COMMERCE INC (SPSC) is 8 / 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 8.19% in the next year.