SPS COMMERCE INC (SPSC) Stock Fundamental Analysis
NASDAQ:SPSC • US78463M1071
53.21 USD
-0.96 (-1.77%)
Last: Feb 25, 2026, 10:56 AM
Overall SPSC gets a fundamental rating of 7 out of 10. We evaluated SPSC against 274 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 cheap, while showing a decent growth score. This is a good combination! With these ratings, SPSC could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year SPSC was profitable.
- SPSC had a positive operating cash flow in the past year.
- SPSC had positive earnings in each of the past 5 years.
- SPSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SPSC has a Return On Assets of 7.98%. This is amongst the best in the industry. SPSC outperforms 80.29% 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 72.26% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 8.90%, SPSC belongs to the best of the industry, outperforming 81.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SPSC is below the industry average of 10.77%.
- 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
- The Profit Margin of SPSC (12.42%) is better than 72.63% of its industry peers.
- In the last couple of years the Profit Margin of SPSC has declined.
- Looking at the Operating Margin, with a value of 15.74%, SPSC belongs to the top of the industry, outperforming 81.75% 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 50.73% 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
- The number of shares outstanding for SPSC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SPSC has more shares outstanding
- SPSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- SPSC has an Altman-Z score of 7.93. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
- SPSC's Altman-Z score of 7.93 is amongst the best of the industry. SPSC outperforms 89.05% 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 | 7.93 |
ROIC/WACC0.81
WACC10.93%
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.
- With a decent Current ratio value of 2.17, SPSC is doing good in the industry, outperforming 62.77% of the companies in the same industry.
- SPSC has a Quick 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 Quick ratio (2.17) than 63.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
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.
- Measured over the past years, SPSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.63% on average per year.
- 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
- The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
- Based on estimates for the next years, SPSC will show a small growth in Revenue. The Revenue will grow by 7.68% on average per year.
EPS Next Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
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. Valuation
4.1 Price/Earnings Ratio
- SPSC is valuated correctly with a Price/Earnings ratio of 12.46.
- Compared to the rest of the industry, the Price/Earnings ratio of SPSC indicates a rather cheap valuation: SPSC is cheaper than 81.75% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of SPSC to the average of the S&P500 Index (26.98), we can say SPSC is valued rather cheaply.
- SPSC is valuated reasonably with a Price/Forward Earnings ratio of 11.52.
- Based on the Price/Forward Earnings ratio, SPSC is valued cheaper than 80.66% of the companies in the same industry.
- SPSC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaper than 85.04% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SPSC is valued cheaply inside the industry as 82.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
- The 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)1.52
PEG (5Y)0.55
EPS Next 2Y10.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:SPSC (2/25/2026, 10:56:03 AM)
53.21
-0.96 (-1.77%)
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 Owners107.27%
Inst Owner Change-2.51%
Ins Owners0.88%
Ins Owner Change1.21%
Market Cap2.01B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts74.74
Price Target105.08 (97.48%)
Short Float %5.73%
Short Ratio3.34
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)0%
PT rev (3m)1.64%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-7.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 11.52 | ||
| P/S | 2.67 | ||
| P/FCF | 13.18 | ||
| P/OCF | 11.22 | ||
| P/B | 2.06 | ||
| P/tB | 9.27 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)4.27
EY8.02%
EPS(NY)4.62
Fwd EY8.68%
FCF(TTM)4.04
FCFY7.59%
OCF(TTM)4.74
OCFY8.91%
SpS19.93
BVpS25.83
TBVpS5.74
PEG (NY)1.52
PEG (5Y)0.55
Graham Number49.81
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 | 7.93 |
F-Score8
WACC10.93%
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 Y8.19%
EPS Next 2Y10.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3Y18.56%
Revenue growth 5Y19.18%
Sales Q2Q%12.75%
Revenue Next Year7.07%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
Revenue Next 5YN/A
EBIT growth 1Y33.1%
EBIT growth 3Y18.44%
EBIT growth 5Y18.7%
EBIT Next Year28.53%
EBIT Next 3YN/A
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 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.
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 8.19% in the next year.