SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation

NASDAQ:SPSC • US78463M1071

Current stock price

51.45 USD
-0.84 (-1.61%)
At close:
51.45 USD
0 (0%)
After Hours:

This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

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.
  • 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.
SPSC Yearly Net Income VS EBIT VS OCF VS FCFSPSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • SPSC has a better Return On Assets (7.98%) than 82.18% of its industry peers.
  • With a decent Return On Equity value of 9.58%, SPSC is doing good in the industry, outperforming 74.55% of the companies in the same industry.
  • The Return On Invested Capital of SPSC (8.90%) is better than 82.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 10.99%.
  • 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 RankSector 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%
SPSC Yearly ROA, ROE, ROICSPSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • SPSC has a better Profit Margin (12.42%) than 76.36% of its industry peers.
  • In the last couple of years the Profit Margin of SPSC has declined.
  • With an excellent Operating Margin value of 15.74%, SPSC belongs to the best of the industry, outperforming 82.91% of the companies in the same industry.
  • SPSC's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 69.18%, SPSC is in line with its industry, outperforming 53.45% of the companies in the same industry.
  • SPSC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SPSC Yearly Profit, Operating, Gross MarginsSPSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. SPSC Health Analysis

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 less 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.
SPSC Yearly Shares OutstandingSPSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
SPSC Yearly Total Debt VS Total AssetsSPSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • SPSC has an Altman-Z score of 7.66. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.66, SPSC belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
  • SPSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.66
ROIC/WACC0.81
WACC10.94%
SPSC Yearly LT Debt VS Equity VS FCFSPSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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 61.82% of its industry peers.
  • A Quick Ratio of 2.17 indicates that SPSC has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 2.17, SPSC is doing good in the industry, outperforming 62.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 2.17
SPSC Yearly Current Assets VS Current LiabilitesSPSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • The Earnings Per Share has been growing by 22.63% on average over the past years. This is a very strong growth
  • SPSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.83%.
  • 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

  • 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 Year6.59%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SPSC Yearly Revenue VS EstimatesSPSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
SPSC Yearly EPS VS EstimatesSPSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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7

4. SPSC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.05, SPSC is valued correctly.
  • Based on the Price/Earnings ratio, SPSC is valued cheaper than 84.00% of the companies in the same industry.
  • SPSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.78.
  • Based on the Price/Forward Earnings ratio of 11.23, the valuation of SPSC can be described as reasonable.
  • SPSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 80.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SPSC to the average of the S&P500 Index (23.54), we can say SPSC is valued rather cheaply.
Industry RankSector Rank
PE 12.05
Fwd PE 11.23
SPSC Price Earnings VS Forward Price EarningsSPSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 86.18% 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 cheaply inside the industry as 82.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.63
EV/EBITDA 10.22
SPSC Per share dataSPSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • SPSC's 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)0.53
EPS Next 2Y10.16%
EPS Next 3Y11.98%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SPSC Dividend Analysis

5.1 Amount

  • No dividends for SPSC!.
Industry RankSector Rank
Dividend Yield 0%

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SPSC Fundamentals: All Metrics, Ratios and Statistics

SPS COMMERCE INC

NASDAQ:SPSC (4/10/2026, 8:00:02 PM)

After market: 51.45 0 (0%)

51.45

-0.84 (-1.61%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-23
Inst Owners105.78%
Inst Owner Change0.02%
Ins Owners0.97%
Ins Owner Change12.48%
Market Cap1.92B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (72.01%)
Short Float %7.2%
Short Ratio3.07
Dividend
Industry RankSector 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)-14.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE 12.05
Fwd PE 11.23
P/S 2.56
P/FCF 12.63
P/OCF 10.76
P/B 1.98
P/tB 8.89
EV/EBITDA 10.22
EPS(TTM)4.27
EY8.3%
EPS(NY)4.58
Fwd EY8.9%
FCF(TTM)4.07
FCFY7.92%
OCF(TTM)4.78
OCFY9.29%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)1.66
PEG (5Y)0.53
Graham Number50.02
Profitability
Industry RankSector 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 RankSector 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 7.66
F-Score8
WACC10.94%
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 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 Year6.59%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SPS COMMERCE INC?

ChartMill assigns a fundamental rating of 7 / 10 to SPSC.


What is the valuation status for SPSC stock?

ChartMill assigns a valuation rating of 7 / 10 to SPS COMMERCE INC (SPSC). This can be considered as Undervalued.


Can you provide the profitability details for SPS COMMERCE INC?

SPS COMMERCE INC (SPSC) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for SPSC stock?

The Price/Earnings (PE) ratio for SPS COMMERCE INC (SPSC) is 12.05 and the Price/Book (PB) ratio is 1.98.


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.