91.47 USD
-0.53 (-0.58%)
91.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SPSC. SPSC was compared to 276 industry peers in the Software industry. While SPSC has a great health rating, its profitability is only average at the moment. SPSC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make SPSC suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year SPSC was profitable.
- SPSC had a positive operating cash flow in the past year.
- SPSC had positive earnings in each of the past 5 years.
- Each year in the past 5 years SPSC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.34%, SPSC is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
- SPSC has a better Return On Equity (8.87%) than 72.10% of its industry peers.
- The Return On Invested Capital of SPSC (8.38%) is better than 79.35% of its industry peers.
- SPSC had an Average Return On Invested Capital over the past 3 years of 8.71%. This is below the industry average of 10.78%.
| 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 has a Profit Margin of 11.66%. This is in the better half of the industry: SPSC outperforms 71.74% of its industry peers.
- In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
- SPSC has a Operating Margin of 14.85%. This is amongst the best in the industry. SPSC outperforms 81.52% of its industry peers.
- In the last couple of years the Operating Margin of SPSC has remained more or less at the same level.
- The Gross Margin of SPSC (68.45%) 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 | 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.
- Compared to 1 year ago, SPSC has more shares outstanding
- 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.
2.2 Solvency
- SPSC has an Altman-Z score of 11.95. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
- SPSC has a better Altman-Z score (11.95) than 92.03% 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 | 11.95 |
ROIC/WACC0.76
WACC11.02%
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 58.70% of its industry peers.
- A Quick Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.97, SPSC is in line with its industry, outperforming 59.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
- SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.72%, which is quite impressive.
- SPSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.07% yearly.
- Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.28% in the last year.
- SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.97% yearly.
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
- The Earnings Per Share is expected to grow by 14.87% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.83% on average over the next years. This is quite good.
EPS Next Y21.39%
EPS Next 2Y15.4%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue Next Year18.26%
Revenue Next 2Y12.68%
Revenue Next 3Y10.83%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.75, the valuation of SPSC can be described as rather expensive.
- SPSC's Price/Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 70.65% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, SPSC is valued at the same level.
- Based on the Price/Forward Earnings ratio of 19.80, the valuation of SPSC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than 73.55% of the companies in the same industry.
- SPSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than 76.45% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 75.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of SPSC may justify a higher PE ratio.
- SPSC's earnings are expected to grow with 14.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)1.03
EPS Next 2Y15.4%
EPS Next 3Y14.87%
5. Dividend
5.1 Amount
- No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
91.47
-0.53 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners107.27%
Inst Owner Change0.28%
Ins Owners0.88%
Ins Owner Change1.21%
Market Cap3.45B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts74.74
Price Target103.38 (13.02%)
Short Float %6.04%
Short Ratio3.85
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)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)0%
PT rev (3m)-32.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.96%
EPS NY rev (1m)0%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 19.8 | ||
| P/S | 4.73 | ||
| P/FCF | 23.24 | ||
| P/OCF | 19.88 | ||
| P/B | 3.6 | ||
| P/tB | 18.09 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)4.02
EY4.39%
EPS(NY)4.62
Fwd EY5.05%
FCF(TTM)3.94
FCFY4.3%
OCF(TTM)4.6
OCFY5.03%
SpS19.35
BVpS25.43
TBVpS5.06
PEG (NY)1.06
PEG (5Y)1.03
Graham Number47.96
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 | 11.95 |
F-Score7
WACC11.02%
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 Y21.39%
EPS Next 2Y15.4%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue 1Y (TTM)19.28%
Revenue growth 3Y18.29%
Revenue growth 5Y17.97%
Sales Q2Q%16.02%
Revenue Next Year18.26%
Revenue Next 2Y12.68%
Revenue Next 3Y10.83%
Revenue Next 5YN/A
EBIT growth 1Y24.52%
EBIT growth 3Y17.28%
EBIT growth 5Y18.28%
EBIT Next Year40.72%
EBIT Next 3Y21.87%
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.
What is the valuation status for SPSC stock?
ChartMill assigns a valuation rating of 5 / 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 21.39% in the next year.