SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation
NASDAQ:SPSC • US78463M1071
63.72 USD
-0.33 (-0.52%)
At close: Mar 6, 2026
63.72 USD
0 (0%)
After Hours: 3/6/2026, 8:00:02 PM
This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 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 not valued too expensively and it also shows a decent growth rate. With these ratings, SPSC could be worth investigating further for quality investing!.
1. SPSC Profitability Analysis
1.1 Basic Checks
- SPSC had positive earnings in the past year.
- In the past year SPSC had a positive cash flow from operations.
- Each year in the past 5 years SPSC has been profitable.
- Each year in the past 5 years SPSC had a positive operating cash flow.
1.2 Ratios
- SPSC has a Return On Assets of 7.98%. This is amongst the best in the industry. SPSC outperforms 81.88% of its industry peers.
- With a decent Return On Equity value of 9.58%, SPSC is doing good in the industry, outperforming 73.55% of the companies in the same industry.
- SPSC has a better Return On Invested Capital (8.90%) than 83.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 10.72%.
- The 3 year average ROIC (8.37%) for SPSC is below the current ROIC(8.90%), indicating increased profibility in the last year.
| 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 75.36% of the companies in the same industry.
- SPSC's Profit Margin has declined in the last couple of years.
- SPSC has a better Operating Margin (15.74%) than 82.97% 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 (69.18%) which is comparable to the rest of the industry.
- SPSC's Gross Margin has been stable in the last couple of years.
| 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. SPSC Health Analysis
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.
- SPSC has less shares outstanding than it did 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
- An Altman-Z score of 9.07 indicates that SPSC is not in any danger for bankruptcy at the moment.
- SPSC has a better Altman-Z score (9.07) than 90.58% 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 | 9.07 |
ROIC/WACC0.8
WACC11.12%
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 61.59% 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 61.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. SPSC Growth Analysis
3.1 Past
- SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.05%, which is quite impressive.
- SPSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.63% yearly.
- 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. SPSC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.92, the valuation of SPSC can be described as correct.
- SPSC's Price/Earnings ratio is rather cheap when compared to the industry. SPSC is cheaper than 80.80% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (26.29), we can say SPSC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.79, which indicates a correct valuation of SPSC.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 78.99% of the companies are valued more expensively.
- SPSC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SPSC is valued cheaply inside the industry as 81.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.78 | ||
| EV/EBITDA | 12.82 |
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.
PEG (NY)1.82
PEG (5Y)0.66
EPS Next 2Y10.98%
EPS Next 3YN/A
5. SPSC Dividend Analysis
5.1 Amount
- No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPSC Fundamentals: All Metrics, Ratios and Statistics
63.72
-0.33 (-0.52%)
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-2.51%
Ins Owners0.88%
Ins Owner Change12.24%
Market Cap2.40B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target88.5 (38.89%)
Short Float %5.95%
Short Ratio2.88
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)-15.77%
PT rev (3m)-14.39%
EPS NQ rev (1m)-9.43%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.79 | ||
| P/S | 3.2 | ||
| P/FCF | 15.78 | ||
| P/OCF | 13.44 | ||
| P/B | 2.47 | ||
| P/tB | 11.11 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)4.27
EY6.7%
EPS(NY)4.62
Fwd EY7.25%
FCF(TTM)4.04
FCFY6.34%
OCF(TTM)4.74
OCFY7.44%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.82
PEG (5Y)0.66
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 | 9.07 |
F-Score8
WACC11.12%
ROIC/WACC0.8
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 Year27.73%
EBIT Next 3Y18.17%
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.