SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC • US78463M1071
58.41 USD
+1.9 (+3.36%)
At close: Mar 2, 2026
58.41 USD
0 (0%)
After Hours: 3/2/2026, 8:00:02 PM
Overall SPSC gets a fundamental rating of 6 out of 10. We evaluated SPSC against 276 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SPSC a very profitable company, without any liquidiy or solvency issues. SPSC has a correct valuation and a medium growth rate. This makes SPSC very considerable for quality 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.
- In the past 5 years SPSC has always been profitable.
- Each year in the past 5 years SPSC had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.98%, SPSC belongs to the best of the industry, outperforming 81.88% of the companies in the same industry.
- SPSC has a Return On Equity of 9.58%. This is in the better half of the industry: SPSC outperforms 73.55% of its industry peers.
- 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 10.80%.
- 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 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
- With a decent Profit Margin value of 12.42%, SPSC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- 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 82.97% of its industry peers.
- SPSC's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 69.18%, SPSC perfoms like the industry average, outperforming 52.90% of the companies in the same 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC 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.
- 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 8.42. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
- SPSC's Altman-Z score of 8.42 is amongst the best of the industry. SPSC outperforms 89.49% 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 | 8.42 |
ROIC/WACC0.82
WACC10.87%
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.
- Looking at the Current ratio, with a value of 2.17, SPSC is in the better half of 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.
- SPSC has a Quick ratio of 2.17. This is in the better half of the industry: SPSC outperforms 61.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.05% over the past year.
- The Earnings Per Share has been growing by 22.63% on average over the past years. This is a very strong growth
- 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
- SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.98% yearly.
- SPSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.68% yearly.
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.68, the valuation of SPSC can be described as correct.
- 81.52% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
- SPSC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of SPSC.
- 79.71% of the companies in the same industry are more expensive than SPSC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, SPSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- 84.42% of the companies in the same industry are more expensive than SPSC, based on the Enterprise Value to EBITDA ratio.
- 81.52% of the companies in the same industry are more expensive than SPSC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 11.62 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- SPSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)0.6
EPS Next 2Y10.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
58.41
+1.9 (+3.36%)
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 Cap2.20B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target88.5 (51.52%)
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 | 13.68 | ||
| Fwd PE | 12.64 | ||
| P/S | 2.93 | ||
| P/FCF | 14.47 | ||
| P/OCF | 12.32 | ||
| P/B | 2.26 | ||
| P/tB | 10.18 | ||
| EV/EBITDA | 11.62 |
EPS(TTM)4.27
EY7.31%
EPS(NY)4.62
Fwd EY7.91%
FCF(TTM)4.04
FCFY6.91%
OCF(TTM)4.74
OCFY8.12%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.67
PEG (5Y)0.6
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 | 8.42 |
F-Score8
WACC10.87%
ROIC/WACC0.82
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 7 / 10 to SPSC.
What is the valuation status for SPSC stock?
ChartMill assigns a valuation rating of 7 / 10 to SPS COMMERCE INC (SPSC). This can be considered as Undervalued.
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.