SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation
NASDAQ:SPSC • US78463M1071
60.93 USD
-0.2 (-0.33%)
Last: Mar 11, 2026, 12:24 PM
This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to SPSC. 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make SPSC suitable for quality investing!
1. SPSC Profitability Analysis
1.1 Basic Checks
- SPSC had positive earnings in the past year.
- In the past year SPSC had a positive cash flow from operations.
- In the past 5 years SPSC has always been profitable.
- SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SPSC (7.98%) is better than 81.59% of its industry peers.
- Looking at the Return On Equity, with a value of 9.58%, SPSC is in the better half of the industry, outperforming 73.65% of the companies in the same industry.
- SPSC's Return On Invested Capital of 8.90% is amongst the best of 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 10.89%.
- The last Return On Invested Capital (8.90%) for SPSC is above the 3 year average (8.37%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 12.42%, SPSC is doing good in the industry, outperforming 75.09% of the companies in the same industry.
- SPSC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.74%, SPSC belongs to the top of the industry, outperforming 83.03% 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.
- SPSC has a Gross Margin of 69.18%. This is comparable to the rest of the industry: SPSC outperforms 53.07% of its industry peers.
- 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 | 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.
- 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 8.67 indicates that SPSC is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.67, SPSC belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
- 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 | 8.67 |
ROIC/WACC0.82
WACC10.89%
2.3 Liquidity
- SPSC has a Current 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 Current ratio (2.17) than 61.01% of its industry peers.
- A Quick Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
- The Quick ratio of SPSC (2.17) is better than 61.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. SPSC Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 23.05% over the past year.
- The Earnings Per Share has been growing by 22.63% on average over the past years. This is a very strong growth
- The Revenue has grown by 17.83% in the past year. This is quite good.
- The Revenue has been growing by 19.18% on average over the past years. This is quite good.
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
- SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% yearly.
- SPSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
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
- 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.
- 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
- Based on the Price/Earnings ratio of 14.27, the valuation of SPSC can be described as correct.
- 80.51% 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 (26.25), we can say SPSC is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.30, SPSC is valued correctly.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 79.78% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.39. SPSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 84.84% of the companies listed in the same industry.
- 81.23% 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 | 14.96 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPSC does not grow enough to justify the current Price/Earnings ratio.
- SPSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.63
EPS Next 2Y10.16%
EPS Next 3Y11.98%
5. SPSC Dividend Analysis
5.1 Amount
- No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPSC Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:SPSC (3/11/2026, 12:24:45 PM)
60.93
-0.2 (-0.33%)
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 Cap2.28B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (45.25%)
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 | 14.27 | ||
| Fwd PE | 13.3 | ||
| P/S | 3.03 | ||
| P/FCF | 14.96 | ||
| P/OCF | 12.74 | ||
| P/B | 2.34 | ||
| P/tB | 10.53 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)4.27
EY7.01%
EPS(NY)4.58
Fwd EY7.52%
FCF(TTM)4.07
FCFY6.68%
OCF(TTM)4.78
OCFY7.85%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)1.96
PEG (5Y)0.63
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 | 8.67 |
F-Score8
WACC10.89%
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.