SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
78.48 USD
+0.45 (+0.58%)
78.48 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 281 industry peers in the Software industry. While SPSC has a great health rating, its profitability is only average at the moment. SPSC is growing strongly while it is still valued neutral. This is a good combination! With these ratings, SPSC could be worth investigating further for growth 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.
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.
1.2 Ratios
With a decent Return On Assets value of 7.34%, SPSC is doing good in the industry, outperforming 78.65% of the companies in the same industry.
The Return On Equity of SPSC (8.87%) is better than 74.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.38%, SPSC belongs to the top of the industry, outperforming 80.43% 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 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 8.87% | ||
| ROIC | 8.38% |
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
SPSC's Profit Margin of 11.66% is fine compared to the rest of the industry. SPSC outperforms 73.31% of its industry peers.
SPSC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.85%, SPSC belongs to the top of the industry, outperforming 81.49% 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.
With a Gross Margin value of 68.45%, SPSC perfoms like the industry average, outperforming 49.82% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.85% | ||
| PM (TTM) | 11.66% | ||
| GM | 68.45% |
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.
SPSC has more 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 10.52 indicates that SPSC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.52, SPSC belongs to the best of the industry, outperforming 89.68% of the companies in the same industry.
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 | 10.52 |
ROIC/WACC0.76
WACC11.05%
2.3 Liquidity
A Current Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC's Current ratio of 1.97 is in line compared to the rest of the industry. SPSC outperforms 59.79% of its industry peers.
A Quick Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
SPSC has a better Quick ratio (1.97) than 60.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.72% over the past year.
The Earnings Per Share has been growing by 22.07% on average over the past years. This is a very strong growth
Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.28% in the last year.
The Revenue has been growing by 17.97% on average over the past years. This is quite good.
EPS 1Y (TTM)20.72%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%22.83%
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
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 15.51% on average per year.
Based on estimates for the next years, SPSC will show a quite strong growth in Revenue. The Revenue will grow by 11.71% on average per year.
EPS Next Y20.32%
EPS Next 2Y15.6%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue Next Year18.74%
Revenue Next 2Y13.33%
Revenue Next 3Y11.71%
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
SPSC is valuated rather expensively with a Price/Earnings ratio of 19.52.
SPSC's Price/Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 73.67% of the companies in the same industry.
SPSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
Based on the Price/Forward Earnings ratio of 16.92, the valuation of SPSC can be described as correct.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 76.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (34.08), we can say SPSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 16.92 |
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 80.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than 78.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 17.34 |
4.3 Compensation for Growth
SPSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.88
EPS Next 2Y15.6%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.48
+0.45 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change-1.14%
Ins Owners0.64%
Ins Owner Change0.06%
Market Cap2.98B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts75.79
Price Target144.77 (84.47%)
Short Float %5.52%
Short Ratio3.94
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)9.62%
Min EPS beat(2)8.18%
Max EPS beat(2)11.06%
EPS beat(4)4
Avg EPS beat(4)8.96%
Min EPS beat(4)0.86%
Max EPS beat(4)15.73%
EPS beat(8)8
Avg EPS beat(8)8.44%
EPS beat(12)12
Avg EPS beat(12)9.4%
EPS beat(16)16
Avg EPS beat(16)10%
Revenue beat(2)0
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.58%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)-5.98%
PT rev (3m)-8.51%
EPS NQ rev (1m)-3.4%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)1.29%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 16.92 | ||
| P/S | 4.08 | ||
| P/FCF | 20.05 | ||
| P/OCF | 17.15 | ||
| P/B | 3.1 | ||
| P/tB | 15.61 | ||
| EV/EBITDA | 17.34 |
EPS(TTM)4.02
EY5.12%
EPS(NY)4.64
Fwd EY5.91%
FCF(TTM)3.91
FCFY4.99%
OCF(TTM)4.58
OCFY5.83%
SpS19.25
BVpS25.3
TBVpS5.03
PEG (NY)0.96
PEG (5Y)0.88
Graham Number47.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 8.87% | ||
| ROCE | 10.85% | ||
| ROIC | 8.38% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 86.58% | ||
| OM | 14.85% | ||
| PM (TTM) | 11.66% | ||
| GM | 68.45% | ||
| FCFM | 20.33% |
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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.23% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.89% | ||
| Profit Quality | 174.46% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 10.52 |
F-Score7
WACC11.05%
ROIC/WACC0.76
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)20.72%
EPS 3Y23.77%
EPS 5Y22.07%
EPS Q2Q%22.83%
EPS Next Y20.32%
EPS Next 2Y15.6%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
Revenue Next Year18.74%
Revenue Next 2Y13.33%
Revenue Next 3Y11.71%
Revenue Next 5YN/A
EBIT growth 1Y24.52%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year41.78%
EBIT Next 3Y24.03%
EBIT Next 5YN/A
FCF growth 1Y46.06%
FCF growth 3Y13.76%
FCF growth 5Y18.74%
OCF growth 1Y40.93%
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 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 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 20.32% in the next year.