90.57 USD
-0.92 (-1.01%)
90.57 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 278 industry peers in the Software industry. SPSC has an excellent financial health rating, but there are some minor concerns on its profitability. SPSC is growing strongly while it is still valued neutral. This is a good combination! These ratings could make SPSC a good candidate 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.
Each year in the past 5 years SPSC has been profitable.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPSC has a better Return On Assets (7.34%) than 77.94% of its industry peers.
The Return On Equity of SPSC (8.87%) is better than 73.31% of its industry peers.
SPSC has a Return On Invested Capital of 8.38%. This is in the better half of the industry: SPSC outperforms 79.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPSC 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
With a decent Profit Margin value of 11.66%, SPSC is doing good in the industry, outperforming 73.31% of the companies in the same industry.
In the last couple of years the Profit Margin of SPSC has remained more or less at the same level.
SPSC has a better Operating Margin (14.85%) than 81.49% of its industry peers.
SPSC's Operating Margin has been stable in the last couple of years.
SPSC has a Gross Margin (68.45%) which is comparable to the rest of the 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.
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 11.85. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
SPSC's Altman-Z score of 11.85 is amongst the best of the industry. SPSC outperforms 90.04% 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 | 11.85 |
ROIC/WACC0.77
WACC10.89%
2.3 Liquidity
A Current Ratio of 1.97 indicates that SPSC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.97, SPSC perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
SPSC has a Quick 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 Quick ratio, with a value of 1.97, SPSC is in the better half of the industry, outperforming 60.14% 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
Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.87% on average per year.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.83% yearly.
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
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
With a Price/Earnings ratio of 22.53, SPSC is valued on the expensive side.
Based on the Price/Earnings ratio, SPSC is valued a bit cheaper than 71.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.39. SPSC is around the same levels.
SPSC is valuated rather expensively with a Price/Forward Earnings ratio of 19.60.
SPSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 74.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (23.84), we can say SPSC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 19.6 |
4.2 Price Multiples
79.00% of the companies in the same industry are more expensive than SPSC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SPSC is valued a bit cheaper than the industry average as 76.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 20.03 |
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.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 14.87% in the coming years.
PEG (NY)1.05
PEG (5Y)1.02
EPS Next 2Y15.4%
EPS Next 3Y14.87%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
90.57
-0.92 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.29%
Inst Owner Change-1.18%
Ins Owners0.66%
Ins Owner Change1.21%
Market Cap3.42B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts74.74
Price Target103.38 (14.14%)
Short Float %5.76%
Short Ratio4.03
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)-28.59%
PT rev (3m)-34.67%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-3.96%
EPS NY rev (1m)0.89%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 19.6 | ||
| P/S | 4.68 | ||
| P/FCF | 23.02 | ||
| P/OCF | 19.69 | ||
| P/B | 3.56 | ||
| P/tB | 17.92 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)4.02
EY4.44%
EPS(NY)4.62
Fwd EY5.1%
FCF(TTM)3.94
FCFY4.34%
OCF(TTM)4.6
OCFY5.08%
SpS19.35
BVpS25.43
TBVpS5.06
PEG (NY)1.05
PEG (5Y)1.02
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 | 11.85 |
F-Score7
WACC10.89%
ROIC/WACC0.77
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 Year40.7%
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.
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 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.