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

  • SPSC had positive earnings in the past year.
  • 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.
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 Return On Assets of 7.98%. This is amongst the best in the industry. SPSC outperforms 82.18% of its industry peers.
  • SPSC has a Return On Equity of 9.58%. This is in the better half of the industry: SPSC outperforms 74.55% of its industry peers.
  • SPSC has a Return On Invested Capital of 8.90%. This is amongst the best in the industry. SPSC outperforms 82.91% of its industry peers.
  • SPSC had an Average Return On Invested Capital over the past 3 years of 8.37%. This is below the industry average of 10.91%.
  • The 3 year average ROIC (8.37%) for SPSC is below the current ROIC(8.90%), indicating increased profibility in the last year.
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 76.73% of its industry peers.
  • In the last couple of years the Profit Margin of SPSC has declined.
  • SPSC's Operating Margin of 15.74% is amongst the best of the industry. SPSC outperforms 82.91% of its industry peers.
  • 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 69.18%, SPSC is in line with its industry, outperforming 53.09% 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.
  • 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.
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 7.57. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SPSC (7.57) is better than 86.18% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.57
ROIC/WACC0.81
WACC10.96%
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

  • 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.
  • Looking at the Current ratio, with a value of 2.17, SPSC is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
  • 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%.
  • SPSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.18% yearly.
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

  • 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 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.
  • 84.00% of the companies in the same industry are more expensive than SPSC, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.86. SPSC is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 11.23 indicates a reasonable valuation of SPSC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SPSC indicates a somewhat cheap valuation: SPSC is cheaper than 80.00% of the companies listed in the same industry.
  • SPSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 85.45% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, SPSC is valued cheaply inside the industry as 82.55% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.63
EV/EBITDA 10.04
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.
  • SPSC has a very decent profitability rating, which 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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Find the best dividend stocksShow peers with best dividend

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 Owners106.7%
Inst Owner Change0.03%
Ins Owners0.98%
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%
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 10.04
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 7.57
F-Score8
WACC10.96%
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.