SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
USA - NASDAQ:SPSC - US78463M1071 - Common Stock
78.65 USD
-1.24 (-1.55%)
78.65 USD
0 (0%)
Taking everything into account, SPSC scores 6 out of 10 in our fundamental rating. SPSC was compared to 281 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.
In the past year SPSC had a positive cash flow from operations.
SPSC had positive earnings in each of the past 5 years.
SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPSC has a Return On Assets of 7.34%. This is in the better half of the industry: SPSC outperforms 78.65% of its industry peers.
SPSC has a better Return On Equity (8.87%) than 74.02% of its industry peers.
SPSC has a better Return On Invested Capital (8.38%) than 80.43% of its industry peers.
SPSC had an Average Return On Invested Capital over the past 3 years of 8.71%. This is below the industry average of 12.08%.
| 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
The Profit Margin of SPSC (11.66%) is better than 73.31% of its industry peers.
SPSC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.85%, SPSC belongs to the top of the industry, outperforming 81.49% of the companies in the same industry.
In the last couple of years the Operating Margin of SPSC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.45%, SPSC is in line with its industry, outperforming 49.82% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
SPSC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPSC has more shares outstanding
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 10.68 indicates that SPSC is not in any danger for bankruptcy at the moment.
SPSC has a better Altman-Z score (10.68) than 90.04% 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 | 10.68 |
ROIC/WACC0.76
WACC11.06%
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.
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.
SPSC has a Quick ratio (1.97) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing by 22.07% on average over the past years. This is a very strong growth
Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.28% in the last year.
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.
The Revenue is expected to grow by 11.71% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 19.56, the valuation of SPSC can be described as rather expensive.
SPSC's Price/Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 73.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. SPSC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.96, which indicates a correct valuation of SPSC.
Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than 76.16% of the companies in the same industry.
SPSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
SPSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPSC is cheaper than 81.49% of the companies in the same industry.
78.29% 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 | 20.09 | ||
| EV/EBITDA | 17.67 |
4.3 Compensation for Growth
SPSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPSC has a very decent profitability rating, which may justify a higher PE ratio.
SPSC's earnings are expected to grow with 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.89
EPS Next 2Y15.6%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.65
-1.24 (-1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change-1.14%
Ins Owners0.64%
Ins Owner Change0.06%
Market Cap2.98B
Revenue(TTM)729.76M
Net Income(TTM)85.06M
Analysts75.79
Price Target144.77 (84.07%)
Short Float %5.52%
Short Ratio3.94
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)-3.4%
EPS NY rev (1m)1.29%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 16.96 | ||
| P/S | 4.09 | ||
| P/FCF | 20.09 | ||
| P/OCF | 17.19 | ||
| P/B | 3.11 | ||
| P/tB | 15.64 | ||
| EV/EBITDA | 17.67 |
EPS(TTM)4.02
EY5.11%
EPS(NY)4.64
Fwd EY5.9%
FCF(TTM)3.91
FCFY4.98%
OCF(TTM)4.58
OCFY5.82%
SpS19.25
BVpS25.3
TBVpS5.03
PEG (NY)0.96
PEG (5Y)0.89
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 | 10.68 |
F-Score7
WACC11.06%
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 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 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 20.32% in the next year.