SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation

NASDAQ:SPSC • US78463M1071

Current stock price

60.55 USD
-0.16 (-0.26%)
At close:
60.55 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

  • In the past year SPSC was profitable.
  • In the past year SPSC had a positive cash flow from operations.
  • SPSC had positive earnings in each of the past 5 years.
  • In the past 5 years SPSC always reported a positive cash flow from operatings.
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

  • The Return On Assets of SPSC (7.98%) is better than 81.95% of its industry peers.
  • With a decent Return On Equity value of 9.58%, SPSC is doing good in the industry, outperforming 74.01% 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 83.03% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 10.89%.
  • 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 75.45% of its industry peers.
  • 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 83.03% 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's Gross Margin of 69.18% is in line compared to the rest of the industry. SPSC outperforms 52.71% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
  • Compared to 1 year ago, SPSC has less shares outstanding
  • 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.
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

  • SPSC has an Altman-Z score of 8.61. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.61, SPSC belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
  • 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 8.61
ROIC/WACC0.81
WACC10.99%
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

  • A Current Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.17, SPSC is doing good in the industry, outperforming 61.37% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 2.17, SPSC is in the better half of the industry, outperforming 61.73% 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.
  • The Revenue has grown by 17.83% in the past year. This is quite good.
  • Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 19.18% on average per year.
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

  • SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% yearly.
  • SPSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
Revenue Next 5YN/A

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • SPSC is valuated correctly with a Price/Earnings ratio of 14.18.
  • Based on the Price/Earnings ratio, SPSC is valued cheaply inside the industry as 81.23% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.70. SPSC is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of SPSC.
  • SPSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 79.42% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, SPSC is valued a bit cheaper.
Industry RankSector Rank
PE 14.18
Fwd PE 13.22
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

  • Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaper than 84.12% of the companies 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 80.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.87
EV/EBITDA 11.97
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.
  • The decent profitability rating of SPSC may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)0.63
EPS Next 2Y10.16%
EPS Next 3Y11.98%

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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%

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SPSC Fundamentals: All Metrics, Ratios and Statistics

SPS COMMERCE INC

NASDAQ:SPSC (3/13/2026, 8:00:02 PM)

After market: 60.55 0 (0%)

60.55

-0.16 (-0.26%)

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 Change12.24%
Market Cap2.26B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (46.16%)
Short Float %5.95%
Short Ratio2.88
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)-9.43%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE 14.18
Fwd PE 13.22
P/S 3.01
P/FCF 14.87
P/OCF 12.66
P/B 2.32
P/tB 10.46
EV/EBITDA 11.97
EPS(TTM)4.27
EY7.05%
EPS(NY)4.58
Fwd EY7.56%
FCF(TTM)4.07
FCFY6.73%
OCF(TTM)4.78
OCFY7.9%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)1.95
PEG (5Y)0.63
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 8.61
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 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 Year6.65%
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.