SPS COMMERCE INC (SPSC) Fundamental Analysis & Valuation
NASDAQ:SPSC • US78463M1071
62.49 USD
+1.36 (+2.22%)
Last: Mar 11, 2026, 03:43 PM
This SPSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
SPSC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 277 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 not valued too expensively and it also shows a decent growth rate. These ratings would make SPSC suitable for quality investing!
1. SPSC Profitability Analysis
1.1 Basic Checks
- In the past year SPSC was profitable.
- 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
- SPSC has a better Return On Assets (7.98%) than 81.59% of its industry peers.
- SPSC has a Return On Equity of 9.58%. This is in the better half of the industry: SPSC outperforms 73.65% of its industry peers.
- SPSC has a better Return On Invested Capital (8.90%) than 83.39% 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 10.89%.
- The 3 year average ROIC (8.37%) for SPSC is below the current ROIC(8.90%), indicating increased profibility in the last year.
| 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
- SPSC has a Profit Margin of 12.42%. This is in the better half of the industry: SPSC outperforms 75.09% of its industry peers.
- SPSC's Profit Margin has declined in the last couple of years.
- SPSC's Operating Margin of 15.74% is amongst the best of the industry. SPSC outperforms 83.03% of its industry peers.
- SPSC's Operating Margin has been stable in the last couple of years.
- SPSC has a Gross Margin of 69.18%. This is comparable to the rest of the industry: SPSC outperforms 53.07% of its industry peers.
- SPSC's Gross Margin has been stable in the last couple of years.
| 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. SPSC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPSC is destroying value.
- SPSC has less shares outstanding than it did 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.
2.2 Solvency
- SPSC has an Altman-Z score of 8.67. This indicates that SPSC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SPSC (8.67) is better than 89.17% 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 | 8.67 |
ROIC/WACC0.82
WACC10.89%
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 better Current ratio (2.17) than 61.01% of its industry peers.
- 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.
- The Quick ratio of SPSC (2.17) is better than 61.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. SPSC Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 23.05% 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 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%.
- Measured over the past years, SPSC shows a quite strong growth in Revenue. The Revenue has been growing by 19.18% on average per year.
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
- SPSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% yearly.
- Based on estimates for the next years, SPSC will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y7.27%
EPS Next 2Y10.16%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year6.65%
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.
- 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. SPSC Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.63 indicates a correct valuation of SPSC.
- Based on the Price/Earnings ratio, SPSC is valued cheaply inside the industry as 80.51% of the companies are valued more expensively.
- SPSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
- Based on the Price/Forward Earnings ratio of 13.64, the valuation of SPSC can be described as correct.
- Based on the Price/Forward Earnings ratio, SPSC is valued a bit cheaper than the industry average as 79.78% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.39. SPSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPSC is valued cheaply inside the industry as 84.84% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SPSC is valued cheaper than 81.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.34 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SPSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)0.65
EPS Next 2Y10.16%
EPS Next 3Y11.98%
5. SPSC Dividend Analysis
5.1 Amount
- SPSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPSC Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:SPSC (3/11/2026, 3:43:09 PM)
62.49
+1.36 (+2.22%)
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 Owners105.78%
Inst Owner Change-2.48%
Ins Owners0.97%
Ins Owner Change12.24%
Market Cap2.34B
Revenue(TTM)751.50M
Net Income(TTM)93.34M
Analysts73.68
Price Target88.5 (41.62%)
Short Float %5.95%
Short Ratio2.88
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)-15.77%
PT rev (3m)-14.39%
EPS NQ rev (1m)-9.43%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 13.64 | ||
| P/S | 3.11 | ||
| P/FCF | 15.34 | ||
| P/OCF | 13.07 | ||
| P/B | 2.4 | ||
| P/tB | 10.8 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)4.27
EY6.83%
EPS(NY)4.58
Fwd EY7.33%
FCF(TTM)4.07
FCFY6.52%
OCF(TTM)4.78
OCFY7.65%
SpS20.1
BVpS26.05
TBVpS5.79
PEG (NY)2.01
PEG (5Y)0.65
Graham Number50.02
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 | 8.67 |
F-Score8
WACC10.89%
ROIC/WACC0.82
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 Year6.65%
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 FAQ
Can you provide the ChartMill fundamental rating for SPS COMMERCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to SPSC.
What is the valuation status for SPSC stock?
ChartMill assigns a valuation rating of 6 / 10 to SPS COMMERCE INC (SPSC). This can be considered as Fairly Valued.
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 7.27% in the next year.