SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC • US78463M1071
57.95 USD
-0.4 (-0.69%)
At close: Feb 20, 2026
57.95 USD
0 (0%)
After Hours: 2/20/2026, 8:05:49 PM
SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 274 industry peers in the Software industry. SPSC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SPSC has a correct valuation and a medium growth rate. With these ratings, SPSC could be worth investigating further for quality investing!.
1. Profitability
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.
1.2 Ratios
- SPSC has a Return On Assets of 7.98%. This is in the better half of the industry: SPSC outperforms 79.93% of its industry peers.
- With a decent Return On Equity value of 9.58%, SPSC is doing good in the industry, outperforming 71.90% of the companies in the same industry.
- SPSC has a better Return On Invested Capital (8.90%) than 81.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 10.69%.
- The 3 year average ROIC (8.37%) for SPSC is below the current ROIC(8.90%), indicating increased profibility in the last year.
| 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
- SPSC's Profit Margin of 12.42% is fine compared to the rest of the industry. SPSC outperforms 72.63% of its industry peers.
- In the last couple of years the Profit Margin of SPSC has declined.
- SPSC has a better Operating Margin (15.74%) than 81.75% of its industry peers.
- SPSC's Operating Margin has been stable in the last couple of years.
- The Gross Margin of SPSC (69.18%) 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 | 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
- SPSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SPSC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SPSC has more shares outstanding
- 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 8.37 indicates that SPSC is not in any danger for bankruptcy at the moment.
- SPSC has a better Altman-Z score (8.37) than 90.15% of its industry peers.
- 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 | 8.37 |
ROIC/WACC0.81
WACC11.02%
2.3 Liquidity
- A Current Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
- SPSC has a Current ratio of 2.17. This is in the better half of the industry: SPSC outperforms 62.77% of its industry peers.
- 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.
- SPSC has a better Quick ratio (2.17) than 63.14% 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.
- 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.
- Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 17.83% in the last year.
- 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
- The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
- Based on estimates for the next years, SPSC will show a small growth in Revenue. The Revenue will grow by 7.68% on average per year.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.57, which indicates a correct valuation of SPSC.
- 80.66% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (26.99), we can say SPSC is valued slightly cheaper.
- SPSC is valuated correctly with a Price/Forward Earnings ratio of 12.54.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 79.93% of the companies are valued more expensively.
- SPSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.54 |
4.2 Price Multiples
- 83.58% of the companies in the same industry are more expensive than SPSC, based on the Enterprise Value to EBITDA ratio.
- SPSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPSC is cheaper than 82.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 11.52 |
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.
PEG (NY)1.66
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% |
57.95
-0.4 (-0.69%)
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 Change1.21%
Market Cap2.19B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target105.08 (81.33%)
Short Float %5.73%
Short Ratio3.34
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)0%
PT rev (3m)1.64%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-7.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.54 | ||
| P/S | 2.91 | ||
| P/FCF | 14.35 | ||
| P/OCF | 12.22 | ||
| P/B | 2.24 | ||
| P/tB | 10.1 | ||
| EV/EBITDA | 11.52 |
EPS(TTM)4.27
EY7.37%
EPS(NY)4.62
Fwd EY7.97%
FCF(TTM)4.04
FCFY6.97%
OCF(TTM)4.74
OCFY8.18%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.66
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 | 8.37 |
F-Score8
WACC11.02%
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 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 Year28.53%
EBIT Next 3YN/A
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 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 8.19% in the next year.