SPSC Stock Overview
SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide.
No risks detected for SPSC from our risk checks.
SPS Commerce Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$111.46|
|52 Week High||US$174.42|
|52 Week Low||US$94.84|
|1 Month Change||0.99%|
|3 Month Change||-17.39%|
|1 Year Change||9.61%|
|3 Year Change||117.76%|
|5 Year Change||260.19%|
|Change since IPO||1,539.12%|
Recent News & Updates
Returns On Capital Are Showing Encouraging Signs At SPS Commerce (NASDAQ:SPSC)
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world...
SPS Commerce: Looking Vulnerable In This Market Environment
SPS Commerce has been a continued secular growth play in recent years. The company has seen a solid 2021 in terms of sales growth, but (realistic) earnings growth has been underwhelming. While the long-term positioning is good, valuations remain very demanding, creating a dangerous setup given the mantra of the market these days.
Calculating The Fair Value Of SPS Commerce, Inc. (NASDAQ:SPSC)
Today we will run through one way of estimating the intrinsic value of SPS Commerce, Inc. ( NASDAQ:SPSC ) by taking the...
|SPSC||US Software||US Market|
Return vs Industry: SPSC exceeded the US Software industry which returned -23.6% over the past year.
Return vs Market: SPSC exceeded the US Market which returned -21.7% over the past year.
|SPSC Average Weekly Movement||6.2%|
|Software Industry Average Movement||11.0%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: SPSC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SPSC's weekly volatility (6%) has been stable over the past year.
About the Company
SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, suppliers, grocers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment solution that provides fulfillment automation and replaces or augments an organization’s existing staff and trading partner electronic communication infrastructure by enabling easy compliance with retailers’ rulebooks, automatic, and digital exchange of information among numerous trading partners through various protocols, and greater visibility into the journey of an order; and Analytics solution, which consists of data analytics applications that enables customers to enhance their visibility across supply chains through greater analytics capabilities.
SPS Commerce Fundamentals Summary
|SPSC fundamental statistics|
Is SPSC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SPSC income statement (TTM)|
|Cost of Revenue||US$137.10m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||1.30|
|Net Profit Margin||11.74%|
How did SPSC perform over the long term?See historical performance and comparison
Is SPSC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for SPSC?
Other financial metrics that can be useful for relative valuation.
|What is SPSC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SPSC's PE Ratio compare to its peers?
|SPSC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ALRM Alarm.com Holdings
DV DoubleVerify Holdings
ACIW ACI Worldwide
SPSC SPS Commerce
Price-To-Earnings vs Peers: SPSC is good value based on its Price-To-Earnings Ratio (85.6x) compared to the peer average (117.1x).
Price to Earnings Ratio vs Industry
How does SPSC's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Earnings vs Industry: SPSC is expensive based on its Price-To-Earnings Ratio (85.6x) compared to the US Software industry average (38.1x)
Price to Earnings Ratio vs Fair Ratio
What is SPSC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||85.6x|
|Fair PE Ratio||34.5x|
Price-To-Earnings vs Fair Ratio: SPSC is expensive based on its Price-To-Earnings Ratio (85.6x) compared to the estimated Fair Price-To-Earnings Ratio (34.5x).
Share Price vs Fair Value
What is the Fair Price of SPSC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: SPSC ($111.46) is trading below our estimate of fair value ($118.79)
Significantly Below Fair Value: SPSC is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: SPSC is poor value based on its PEG Ratio (3.9x)
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How is SPS Commerce forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPSC's forecast earnings growth (22.1% per year) is above the savings rate (1.9%).
Earnings vs Market: SPSC's earnings (22.1% per year) are forecast to grow faster than the US market (13.6% per year).
High Growth Earnings: SPSC's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SPSC's revenue (30.9% per year) is forecast to grow faster than the US market (8.2% per year).
High Growth Revenue: SPSC's revenue (30.9% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SPSC's Return on Equity is forecast to be high in 3 years time
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How has SPS Commerce performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPSC has high quality earnings.
Growing Profit Margin: SPSC's current net profit margins (11.7%) are lower than last year (14.1%).
Past Earnings Growth Analysis
Earnings Trend: SPSC's earnings have grown significantly by 37.5% per year over the past 5 years.
Accelerating Growth: SPSC's earnings growth over the past year (1.6%) is below its 5-year average (37.5% per year).
Earnings vs Industry: SPSC earnings growth over the past year (1.6%) underperformed the Software industry 26.8%.
Return on Equity
High ROE: SPSC's Return on Equity (9.6%) is considered low.
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How is SPS Commerce's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: SPSC's short term assets ($351.5M) exceed its short term liabilities ($94.4M).
Long Term Liabilities: SPSC's short term assets ($351.5M) exceed its long term liabilities ($27.4M).
Debt to Equity History and Analysis
Debt Level: SPSC is debt free.
Reducing Debt: SPSC has not had any debt for past 5 years.
Debt Coverage: SPSC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SPSC has no debt, therefore coverage of interest payments is not a concern.
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What is SPS Commerce current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SPSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SPSC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SPSC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SPSC's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as SPSC has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Archie Black (60 yo)
Mr. Archie C. Black has been Chief Executive Officer at SPS Commerce, Inc. since 2001 and served as its President since 2001 until January 06, 2022. Mr. Black is responsible for the management and strategi...
CEO Compensation Analysis
Compensation vs Market: Archie's total compensation ($USD6.69M) is about average for companies of similar size in the US market ($USD6.90M).
Compensation vs Earnings: Archie's compensation has increased by more than 20% in the past year.
Experienced Management: SPSC's management team is seasoned and experienced (8.8 years average tenure).
Experienced Board: SPSC's board of directors are considered experienced (8.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SPS Commerce, Inc.'s employee growth, exchange listings and data sources
- Name: SPS Commerce, Inc.
- Ticker: SPSC
- Exchange: NasdaqGS
- Founded: 1987
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$4.023b
- Shares outstanding: 36.10m
- Website: https://www.spscommerce.com
Number of Employees
- SPS Commerce, Inc.
- 333 South Seventh Street
- Suite 1000
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/01 00:00|
|End of Day Share Price||2022/07/01 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.