SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
81.69 USD
+0.04 (+0.05%)
81.69 USD
0 (0%)
SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 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 is not overvalued while it is showing excellent growth. This is an interesting combination. This makes SPSC very considerable for growth and 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.
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 an excellent Return On Assets value of 7.34%, SPSC belongs to the best of the industry, outperforming 81.14% of the companies in the same industry.
With a decent Return On Equity value of 8.87%, SPSC is doing good in the industry, outperforming 74.73% of the companies in the same industry.
SPSC has a better Return On Invested Capital (8.38%) than 80.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 11.95%.
| 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 73.67% of its industry peers.
In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
The Operating Margin of SPSC (14.85%) is better than 81.49% 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPSC is destroying value.
Compared to 1 year ago, SPSC has more shares outstanding
The number of shares outstanding for SPSC has been increased compared to 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 10.89 indicates that SPSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.89, SPSC belongs to the top of the industry, outperforming 88.26% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.89 |
ROIC/WACC0.76
WACC10.97%
2.3 Liquidity
SPSC has a Current Ratio of 1.97. This is a normal value and indicates that SPSC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.97, SPSC is in the better half of the industry, outperforming 60.50% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
The Quick ratio of SPSC (1.97) is better than 60.85% 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.
Measured over the past years, SPSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.07% on average per year.
SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.28%.
Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 17.97% on average per year.
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
SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.51% yearly.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.71% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 20.32 indicates a rather expensive valuation of SPSC.
75.80% 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 26.35, which is the current average of the S&P500 Index.
SPSC is valuated rather expensively with a Price/Forward Earnings ratio of 17.62.
77.22% 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 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaper than 81.85% of the companies in the same industry.
SPSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 78.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
SPSC's 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.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 15.51% in the coming years.
PEG (NY)1
PEG (5Y)0.92
EPS Next 2Y15.6%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.69
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change-0.61%
Ins Owners0.64%
Ins Owner Change0.13%
Market Cap3.10B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts75.79
Price Target144.77 (77.22%)
Short Float %5.7%
Short Ratio5.25
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)-3.15%
EPS NY rev (1m)1.29%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.62 | ||
| P/S | 4.24 | ||
| P/FCF | 20.87 | ||
| P/OCF | 17.85 | ||
| P/B | 3.23 | ||
| P/tB | 16.24 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)4.02
EY4.92%
EPS(NY)4.64
Fwd EY5.68%
FCF(TTM)3.91
FCFY4.79%
OCF(TTM)4.58
OCFY5.6%
SpS19.25
BVpS25.3
TBVpS5.03
PEG (NY)1
PEG (5Y)0.92
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 | 10.89 |
F-Score7
WACC10.97%
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 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 7 / 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.