SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation

NASDAQ:SPSC • US78463M1071

Current stock price

58.41 USD
+0.46 (+0.79%)
At close:
58.41 USD
0 (0%)
After Hours:

This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SPSC Profitability Analysis

1.1 Basic Checks

  • SPSC had positive earnings in the past year.
  • SPSC had a positive operating cash flow in the past year.
  • SPSC had positive earnings in each of the past 5 years.
  • SPSC had a positive operating cash flow in each of the past 5 years.
SPSC Yearly Net Income VS EBIT VS OCF VS FCFSPSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • SPSC's Return On Assets of 7.98% is amongst the best of the industry. SPSC outperforms 82.01% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.58%, SPSC is in the better half of the industry, outperforming 74.46% of the companies in the same industry.
  • SPSC has a Return On Invested Capital of 8.90%. This is amongst the best in the industry. SPSC outperforms 83.45% 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 10.92%.
  • 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 RankSector 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%
SPSC Yearly ROA, ROE, ROICSPSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • SPSC has a better Profit Margin (12.42%) than 76.26% of its industry peers.
  • In the last couple of years the Profit Margin of SPSC has declined.
  • SPSC has a Operating Margin of 15.74%. This is amongst the best in the industry. SPSC outperforms 83.09% of its industry peers.
  • In the last couple of years the Operating Margin of SPSC has remained more or less at the same level.
  • With a Gross Margin value of 69.18%, SPSC perfoms like the industry average, outperforming 53.24% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SPSC has remained more or less at the same level.
Industry RankSector 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%
SPSC Yearly Profit, Operating, Gross MarginsSPSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. SPSC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPSC is destroying value.
  • SPSC has less shares outstanding than it did 1 year ago.
  • 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.
SPSC Yearly Shares OutstandingSPSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
SPSC Yearly Total Debt VS Total AssetsSPSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 8.31 indicates that SPSC is not in any danger for bankruptcy at the moment.
  • SPSC's Altman-Z score of 8.31 is amongst the best of the industry. SPSC outperforms 89.21% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.31
ROIC/WACC0.81
WACC11%
SPSC Yearly LT Debt VS Equity VS FCFSPSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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.
  • The Current ratio of SPSC (2.17) is better than 62.23% of its industry peers.
  • SPSC has a Quick Ratio of 2.17. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Quick ratio value of 2.17, SPSC is doing good in the industry, outperforming 62.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 2.17
SPSC Yearly Current Assets VS Current LiabilitesSPSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • 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.
  • Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 17.83% in the last year.
  • SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.18% yearly.
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

  • Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.98% on average per year.
  • The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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.
SPSC Yearly Revenue VS EstimatesSPSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
SPSC Yearly EPS VS EstimatesSPSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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6

4. SPSC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.68 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 82.37% of the companies listed in the same industry.
  • SPSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.54.
  • SPSC is valuated correctly with a Price/Forward Earnings ratio of 12.75.
  • 80.58% of the companies in the same industry are more expensive than SPSC, based on the Price/Forward Earnings ratio.
  • SPSC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 13.68
Fwd PE 12.75
SPSC Price Earnings VS Forward Price EarningsSPSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 84.89% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 82.37% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.34
EV/EBITDA 11.41
SPSC Per share dataSPSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPSC does not grow enough to justify the current Price/Earnings ratio.
  • SPSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)0.6
EPS Next 2Y10.16%
EPS Next 3Y11.98%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SPSC Dividend Analysis

5.1 Amount

  • No dividends for SPSC!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SPSC Fundamentals: All Metrics, Ratios and Statistics

SPS COMMERCE INC

NASDAQ:SPSC (3/23/2026, 8:19:39 PM)

After market: 58.41 0 (0%)

58.41

+0.46 (+0.79%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners105.78%
Inst Owner Change-2.48%
Ins Owners0.97%
Ins Owner Change12.48%
Market Cap2.18B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (51.52%)
Short Float %5.88%
Short Ratio2.74
Dividend
Industry RankSector 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)-1.99%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE 13.68
Fwd PE 12.75
P/S 2.91
P/FCF 14.34
P/OCF 12.22
P/B 2.24
P/tB 10.09
EV/EBITDA 11.41
EPS(TTM)4.27
EY7.31%
EPS(NY)4.58
Fwd EY7.84%
FCF(TTM)4.07
FCFY6.97%
OCF(TTM)4.78
OCFY8.19%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)1.88
PEG (5Y)0.6
Graham Number50.02
Profitability
Industry RankSector 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 RankSector 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 8.31
F-Score8
WACC11%
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 Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year6.59%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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 Fundamental Analysis 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 7.27% in the next year.