SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation
NASDAQ:SPSC • US78463M1071
62.17 USD
-1.55 (-2.43%)
At close: Mar 9, 2026
62.17 USD
0 (0%)
After Hours: 3/9/2026, 4:30:02 PM
This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 277 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. This makes SPSC very considerable for quality investing!
1. SPSC Profitability Analysis
1.1 Basic Checks
- In the past year SPSC was profitable.
- In the past year SPSC had a positive cash flow from operations.
- 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
- SPSC's Return On Assets of 7.98% is amongst the best of the industry. SPSC outperforms 81.59% of its industry peers.
- With a decent Return On Equity value of 9.58%, SPSC is doing good in the industry, outperforming 74.01% of the companies in the same industry.
- SPSC has a Return On Invested Capital of 8.90%. This is amongst the best in the industry. SPSC outperforms 83.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 10.84%.
- 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 75.45% of its industry peers.
- SPSC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 15.74%, SPSC belongs to the best of the industry, outperforming 83.03% of the companies in the same industry.
- SPSC's Operating Margin has been stable in the last couple of years.
- SPSC has a Gross Margin (69.18%) which 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. SPSC Health Analysis
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 has been reduced compared to 1 year ago.
- SPSC has more shares outstanding than it did 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
- An Altman-Z score of 8.97 indicates that SPSC is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SPSC (8.97) is better than 90.25% 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 | 8.97 |
ROIC/WACC0.82
WACC10.9%
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 61.01% 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.
- Looking at the Quick ratio, with a value of 2.17, SPSC is in the better half of the industry, outperforming 61.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. SPSC Growth Analysis
3.1 Past
- SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.05%, which is quite impressive.
- 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.
- SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.83%.
- SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.18% yearly.
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
- Based on estimates for the next years, SPSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.98% on average per year.
- The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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.
- 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. SPSC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.56, which indicates a correct valuation of SPSC.
- SPSC's Price/Earnings ratio is rather cheap when compared to the industry. SPSC is cheaper than 80.87% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.29. SPSC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 13.57, SPSC is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 80.14% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.60. SPSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaply inside the industry as 84.12% of the companies are valued more expensively.
- SPSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPSC is cheaper than 80.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of SPSC may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)0.64
EPS Next 2Y10.16%
EPS Next 3Y11.98%
5. SPSC Dividend Analysis
5.1 Amount
- SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPSC Fundamentals: All Metrics, Ratios and Statistics
62.17
-1.55 (-2.43%)
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 Owners105.78%
Inst Owner Change-2.48%
Ins Owners0.97%
Ins Owner Change12.24%
Market Cap2.32B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (42.35%)
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)-9.51%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 13.57 | ||
| P/S | 3.09 | ||
| P/FCF | 15.27 | ||
| P/OCF | 13 | ||
| P/B | 2.39 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)4.27
EY6.87%
EPS(NY)4.58
Fwd EY7.37%
FCF(TTM)4.07
FCFY6.55%
OCF(TTM)4.78
OCFY7.69%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)2
PEG (5Y)0.64
Graham Number50.02
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 | 8.97 |
F-Score8
WACC10.9%
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 Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year6.65%
Revenue Next 2Y6.98%
Revenue Next 3Y7.42%
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 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 7.27% in the next year.