SPS COMMERCE INC (SPSC)
US78463M1071 - Common Stock
We assign a fundamental rating of 6 out of 10 to SPSC. SPSC was compared to 279 industry peers in the Software industry. SPSC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SPSC is valued quite expensively, but it does show have an excellent growth rating. With these ratings, SPSC could be worth investigating further for growth and quality 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.
Each year in the past 5 years SPSC has been profitable.
Each year in the past 5 years SPSC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SPSC (7.82%) is better than 84.23% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 7.83%, SPSC belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPSC is below the industry average of 11.54%.
| 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
SPSC has a Profit Margin of 12.83%. This is amongst the best in the industry. SPSC outperforms 81.36% of its industry peers.
SPSC's Profit Margin has improved in the last couple of years.
SPSC has a Operating Margin of 14.22%. This is amongst the best in the industry. SPSC outperforms 84.23% of its industry peers.
In the last couple of years the Operating Margin of SPSC has grown nicely.
The Gross Margin of SPSC (66.63%) is comparable to the rest of the industry.
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 | 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
SPSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SPSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SPSC has been increased compared to 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
An Altman-Z score of 25.72 indicates that SPSC is not in any danger for bankruptcy at the moment.
SPSC has a Altman-Z score of 25.72. This is amongst the best in the industry. SPSC outperforms 94.62% 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 | 25.72 |
ROIC/WACC0.66
WACC11.9%
2.3 Liquidity
A Current Ratio of 2.36 indicates that SPSC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, SPSC is in the better half of the industry, outperforming 65.23% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that SPSC has no problem at all paying its short term obligations.
SPSC's Quick ratio of 2.36 is fine compared to the rest 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
SPSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.53%, which is quite impressive.
The Earnings Per Share has been growing by 24.27% on average over the past years. This is a very strong growth
The Revenue has grown by 19.03% in the past year. This is quite good.
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
SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.41% yearly.
SPSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.75% yearly.
EPS Next Y22.52%
EPS Next 2Y17.94%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue Next Year18.91%
Revenue Next 2Y17.64%
Revenue Next 3Y16.75%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.95, SPSC can be considered very expensive at the moment.
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 28.96. SPSC is valued rather expensively when compared to this.
SPSC is valuated quite expensively with a Price/Forward Earnings ratio of 46.84.
The rest of the industry has a similar Price/Forward Earnings ratio as SPSC.
SPSC is valuated expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.95 | ||
| Fwd PE | 46.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPSC is valued a bit cheaper than the industry average as 67.38% of the companies are valued more expensively.
SPSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPSC is cheaper than 62.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.22 | ||
| EV/EBITDA | 53.73 |
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.
A more expensive valuation may be justified as SPSC's earnings are expected to grow with 18.41% in the coming years.
PEG (NY)2.48
PEG (5Y)2.31
EPS Next 2Y17.94%
EPS Next 3Y18.41%
5. Dividend
5.1 Amount
No dividends for SPSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPS COMMERCE INC
NASDAQ:SPSC (11/21/2024, 8:00:02 PM)
After market: 186.32 0 (0%)186.32
+6.45 (+3.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.95 | ||
| Fwd PE | 46.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.48
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 9.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.22% | ||
| PM (TTM) | 12.83% | ||
| GM | 66.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.53%
EPS 3Y22.92%
EPS 5Y
EPS Q2Q%
EPS Next Y22.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.03%
Revenue growth 3Y19.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y