SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC - Nasdaq - US78463M1071 - Common Stock - Currency: USD
Overall SPSC gets a fundamental rating of 6 out of 10. We evaluated SPSC against 286 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SPSC a very profitable company, without any liquidiy or solvency issues. SPSC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes SPSC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
SPSC had positive earnings in the past year.
SPSC had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 7.82%, SPSC belongs to the best of the industry, outperforming 82.80% of the companies in the same industry.
SPSC's Return On Equity of 9.47% is fine compared to the rest of the industry. SPSC outperforms 78.14% of its industry peers.
SPSC has a better Return On Invested Capital (7.83%) than 82.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 12.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 9.47% | ||
| ROIC | 7.83% |
ROA(3y)7.81%
ROA(5y)7.92%
ROE(3y)9.78%
ROE(5y)9.93%
ROIC(3y)8.88%
ROIC(5y)8.62%
1.3 Margins
The Profit Margin of SPSC (12.83%) is better than 80.65% of its industry peers.
In the last couple of years the Profit Margin of SPSC has grown nicely.
Looking at the Operating Margin, with a value of 14.22%, SPSC belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
In the last couple of years the Operating Margin of SPSC has grown nicely.
SPSC's Gross Margin of 66.63% is in line compared to the rest of the industry. SPSC outperforms 48.39% of its industry peers.
SPSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.22% | ||
| PM (TTM) | 12.83% | ||
| GM | 66.63% |
OM growth 3Y-3.6%
OM growth 5Y5.99%
PM growth 3Y-5.63%
PM growth 5Y4.95%
GM growth 3Y-0.98%
GM growth 5Y-0.3%
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.
SPSC has more shares outstanding than it did 5 years ago.
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
SPSC has an Altman-Z score of 25.35. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPSC (25.35) is better than 94.62% 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 | 25.35 |
ROIC/WACC0.71
WACC11%
2.3 Liquidity
SPSC has a Current Ratio of 2.36. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
SPSC's Current ratio of 2.36 is fine compared to the rest of the industry. SPSC outperforms 65.23% of its industry peers.
SPSC has a Quick Ratio of 2.36. This indicates that SPSC is financially healthy and has no problem in meeting its short term obligations.
SPSC has a Quick ratio of 2.36. This is in the better half of the industry: SPSC outperforms 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.53% over the past year.
Measured over the past years, SPSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.27% on average per year.
Looking at the last year, SPSC shows a quite strong growth in Revenue. The Revenue has grown by 19.03% in the last year.
Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 16.69% on average per year.
EPS 1Y (TTM)21.53%
EPS 3Y22.92%
EPS 5Y24.27%
EPS Q2Q%22.67%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y19.76%
Revenue growth 5Y16.69%
Sales Q2Q%20.66%
3.2 Future
The Earnings Per Share is expected to grow by 17.34% on average over the next years. This is quite good.
Based on estimates for the next years, SPSC will show a quite strong growth in Revenue. The Revenue will grow by 16.14% on average per year.
EPS Next Y22.46%
EPS Next 2Y17.94%
EPS Next 3Y18.39%
EPS Next 5Y17.34%
Revenue Next Year18.91%
Revenue Next 2Y18.75%
Revenue Next 3Y17.48%
Revenue Next 5Y16.15%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SPSC is valuated quite expensively with a Price/Earnings ratio of 55.46.
Compared to the rest of the industry, the Price/Earnings ratio of SPSC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.46. SPSC is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 46.43, the valuation of SPSC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPSC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.56, SPSC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 46.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than 67.74% of the companies in the same industry.
63.08% 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 | 52.75 | ||
| EV/EBITDA | 52.88 |
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.
SPSC's earnings are expected to grow with 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)2.29
EPS Next 2Y17.94%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPS COMMERCE INC
NASDAQ:SPSC (1/31/2025, 8:00:02 PM)
After market: 183.68 -1 (-0.54%)184.68
+1.22 (+0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.6%
Inst Owner Change-0.1%
Ins Owners0.7%
Ins Owner Change-2.85%
Market Cap6.94B
Analysts78.82
Price Target227.15 (23%)
Short Float %3%
Short Ratio5.67
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)5.6%
Min EPS beat(2)2.14%
Max EPS beat(2)9.06%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)2.14%
Max EPS beat(4)14.68%
EPS beat(8)8
Avg EPS beat(8)9.62%
EPS beat(12)12
Avg EPS beat(12)10.35%
EPS beat(16)16
Avg EPS beat(16)10.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.41%
PT rev (1m)0%
PT rev (3m)-1.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)0%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 46.43 | ||
| P/S | 11.34 | ||
| P/FCF | 52.75 | ||
| P/OCF | 46.37 | ||
| P/B | 8.37 | ||
| P/tB | 29.19 | ||
| EV/EBITDA | 52.88 |
EPS(TTM)3.33
EY1.8%
EPS(NY)3.98
Fwd EY2.15%
FCF(TTM)3.5
FCFY1.9%
OCF(TTM)3.98
OCFY2.16%
SpS16.28
BVpS22.08
TBVpS6.33
PEG (NY)2.47
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 9.47% | ||
| ROCE | 10.15% | ||
| ROIC | 7.83% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 112.67% | ||
| OM | 14.22% | ||
| PM (TTM) | 12.83% | ||
| GM | 66.63% | ||
| FCFM | 21.5% |
ROA(3y)7.81%
ROA(5y)7.92%
ROE(3y)9.78%
ROE(5y)9.93%
ROIC(3y)8.88%
ROIC(5y)8.62%
ROICexc(3y)15.55%
ROICexc(5y)15.89%
ROICexgc(3y)88.43%
ROICexgc(5y)74.12%
ROCE(3y)11.52%
ROCE(5y)11.18%
ROICexcg growth 3Y17.05%
ROICexcg growth 5Y22.68%
ROICexc growth 3Y-1.57%
ROICexc growth 5Y0.93%
OM growth 3Y-3.6%
OM growth 5Y5.99%
PM growth 3Y-5.63%
PM growth 5Y4.95%
GM growth 3Y-0.98%
GM growth 5Y-0.3%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.03% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.45% | ||
| Profit Quality | 167.56% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 25.35 |
F-Score6
WACC11%
ROIC/WACC0.71
Cap/Depr(3y)68.72%
Cap/Depr(5y)75.56%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.67%
Profit Quality(3y)175.24%
Profit Quality(5y)171.31%
High Growth Momentum
Growth
EPS 1Y (TTM)21.53%
EPS 3Y22.92%
EPS 5Y24.27%
EPS Q2Q%22.67%
EPS Next Y22.46%
EPS Next 2Y17.94%
EPS Next 3Y18.39%
EPS Next 5Y17.34%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y19.76%
Revenue growth 5Y16.69%
Sales Q2Q%20.66%
Revenue Next Year18.91%
Revenue Next 2Y18.75%
Revenue Next 3Y17.48%
Revenue Next 5Y16.15%
EBIT growth 1Y18.72%
EBIT growth 3Y15.45%
EBIT growth 5Y23.67%
EBIT Next Year34.41%
EBIT Next 3Y24.4%
EBIT Next 5Y21.53%
FCF growth 1Y46.32%
FCF growth 3Y16%
FCF growth 5Y22.26%
OCF growth 1Y38.81%
OCF growth 3Y14.3%
OCF growth 5Y19.19%