NasdaqGS:SPSC

Stock Analysis Report

Executive Summary

SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide.

Rewards

Earnings are forecast to grow 14.72% per year

Earnings grew by 218.4% over the past year

Risk Analysis

No risks detected for SPSC from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has SPS Commerce's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

SPSC

0.2%

US Software

0.8%

US Market


1 Year Return

32.4%

SPSC

28.5%

US Software

17.8%

US Market

Return vs Industry: SPSC exceeded the US Software industry which returned 28.5% over the past year.

Return vs Market: SPSC exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

SPSCIndustryMarket
7 Day-0.8%0.2%0.8%
30 Day1.5%1.1%1.8%
90 Day15.0%4.2%4.1%
1 Year32.4%32.4%30.5%28.5%20.4%17.8%
3 Year55.1%55.1%125.6%116.5%45.9%36.4%
5 Year92.6%92.6%181.2%161.4%68.1%49.6%

Price Volatility Vs. Market

How volatile is SPS Commerce's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SPS Commerce undervalued compared to its fair value and its price relative to the market?

61.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPSC ($55.51) is trading above our estimate of fair value ($34.8)

Significantly Below Fair Value: SPSC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SPSC is poor value based on its PE Ratio (61.1x) compared to the Software industry average (44.5x).

PE vs Market: SPSC is poor value based on its PE Ratio (61.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: SPSC is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: SPSC is good value based on its PB Ratio (5.6x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is SPS Commerce forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPSC's forecast earnings growth (14.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SPSC's earnings (14.7% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: SPSC's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPSC's revenue (9.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: SPSC's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPSC's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has SPS Commerce performed over the past 5 years?

50.9%

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 higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SPSC's earnings have grown significantly by 50.9% per year over the past 5 years.

Accelerating Growth: SPSC's earnings growth over the past year (218.4%) exceeds its 5-year average (50.9% per year).

Earnings vs Industry: SPSC earnings growth over the past year (218.4%) exceeded the Software industry 15.8%.


Return on Equity

High ROE: SPSC's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SPS Commerce's financial position?


Financial Position Analysis

Short Term Liabilities: SPSC's short term assets ($273.5M) exceed its short term liabilities ($60.5M).

Long Term Liabilities: SPSC's short term assets ($273.5M) exceed its long term liabilities ($21.0M).


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.


Balance Sheet

Inventory Level: SPSC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SPSC's debt is covered by short term assets.


Next Steps

Dividend

What is SPS Commerce's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SPSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPSC's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPSC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of SPS Commerce's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Archie Black (57yo)

18.9yrs

Tenure

US$4,520,963

Compensation

Mr. Archie C. Black has been the President and Chief Executive Officer at SPS Commerce, Inc. since 2001. Mr. Black is responsible for the management and strategic direction of Sps Commerce Inc. He has over ...


CEO Compensation Analysis

Compensation vs Market: Archie's total compensation ($USD4.52M) is about average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Archie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SPSC's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

57yo

Average Age

Experienced Board: SPSC's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$854,78520 Feb 19
Archie Black
EntityIndividual
Role
Chief Executive Officer
President
Shares15,964
Max PriceUS$54.24

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jamie Thingelstad (47yo)

    Senior VP & CTO

    • Tenure: 6.3yrs
  • Archie Black (57yo)

    President

    • Tenure: 18.9yrs
    • Compensation: US$4.52m
  • Jim Frome (54yo)

    Executive VP & COO

    • Tenure: 7.3yrs
    • Compensation: US$2.41m
  • Kim Nelson (51yo)

    Executive VP & CFO

    • Tenure: 12.1yrs
    • Compensation: US$2.19m
  • Dan Juckniess

    Senior VP & Chief Sales Officer

    • Tenure: 3.8yrs
  • Mike Carey

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.8yrs
  • Mark O’Leary

    Senior VP & Chief Marketing Officer

    • Tenure: 0.7yrs

Board Members

  • Phil Soran (62yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$183.66k
  • Tami Reller (55yo)

    Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$183.03k
  • Sven Wehrwein (68yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$187.83k
  • Archie Black (57yo)

    President

    • Tenure: 18.9yrs
    • Compensation: US$4.52m
  • Marty Leestma (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$181.02k
  • James Ramsey (46yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$178.95k
  • Marty Réaume (53yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$274.87k

Company Information

SPS Commerce, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SPS Commerce, Inc.
  • Ticker: SPSC
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$1.934b
  • Shares outstanding: 34.84m
  • Website: https://www.spscommerce.com

Number of Employees


Location

  • SPS Commerce, Inc.
  • 333 South Seventh Street
  • Suite 1000
  • Minneapolis
  • Minnesota
  • 55402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2010
S86BST (Boerse-Stuttgart)YesCommon StockDEEURApr 2010

Biography

SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. It offers solutions through the SPS Commerce platform, a cloud-based platform that enhances the way retailers, suppliers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:19
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.