NasdaqGS:SPSC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.6%

NasdaqGS:SPSC

-0.9%

US Software

1.2%

US Market


1 Year Return

-3.1%

NasdaqGS:SPSC

11.1%

US Software

1.7%

US Market

SPSC underperformed the Software industry which returned 11.1% over the past year.

SPSC underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SPSCIndustryMarket
7 Day5.6%-0.9%1.2%
30 Day-7.0%1.4%4.9%
90 Day-9.1%0.8%3.7%
1 Year-3.1%-3.1%12.6%11.1%3.9%1.7%
3 Year44.1%44.1%118.1%109.5%47.2%37.7%
5 Year92.1%92.1%159.5%140.4%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

54.41x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SPS Commerce's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SPS Commerce's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SPS Commerce is overvalued based on earnings compared to the US Software industry average.

SPS Commerce is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

SPS Commerce is poor value based on expected growth next year.


Price Based on Value of Assets

SPS Commerce is good value based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SPS Commerce's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

SPS Commerce's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

SPS Commerce's revenue growth is expected to exceed the United States of America market average.

SPS Commerce's earnings growth is positive but not above the United States of America market average.

SPS Commerce's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if SPS Commerce will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has SPS Commerce performed over the past 5 years?

48.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SPS Commerce has delivered over 20% year on year earnings growth in the past 5 years.

SPS Commerce's 1-year earnings growth exceeds its 5-year average (657.4% vs 48.5%)

SPS Commerce's earnings growth has exceeded the US Software industry average in the past year (657.4% vs 24.7%).


Return on Equity

SPS Commerce has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SPS Commerce used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

SPS Commerce has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SPS Commerce's financial position?


Financial Position Analysis

SPS Commerce is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SPS Commerce's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SPS Commerce has no debt.

SPS Commerce has not taken on any debt in the past 5 years.

SPS Commerce has no debt, it does not need to be covered by operating cash flow.

SPS Commerce has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

SPS Commerce has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate SPS Commerce's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SPS Commerce's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SPS Commerce has not reported any payouts.

Unable to verify if SPS Commerce's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SPS Commerce has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Archie Black (57yo)

18.7yrs

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

Archie's remuneration is about average for companies of similar size in United States of America.

Archie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.1yrs

Average Tenure

52.5yo

Average Age

The average tenure for the SPS Commerce management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.2yrs

Average Tenure

57yo

Average Age

The tenure for the SPS Commerce board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$854,78520 Feb 19
Archie Black
EntityIndividual
Role
Chief Executive Officer
President
Shares15,964
Max PriceUS$54.24
SellUS$796,19809 Nov 18
Martin Leestma
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,632
Max PriceUS$47.87

Ownership Breakdown


Management Team

  • Jamie Thingelstad (47yo)

    Senior VP & CTO

    • Tenure: 6.1yrs
  • Archie Black (57yo)

    President

    • Tenure: 18.7yrs
    • Compensation: US$4.52m
  • Jim Frome (54yo)

    Executive VP & COO

    • Tenure: 7.1yrs
    • Compensation: US$2.41m
  • Kim Nelson (51yo)

    Executive VP & CFO

    • Tenure: 11.8yrs
    • Compensation: US$2.19m
  • Dan Juckniess

    Senior VP & Chief Sales Officer

    • Tenure: 3.5yrs
  • Mike Carey

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.5yrs
  • Mark O’Leary

    Senior VP & Chief Marketing Officer

    • Tenure: 0.4yrs

Board Members

  • Phil Soran (62yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$183.66k
  • Tami Reller (55yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: US$183.03k
  • Sven Wehrwein (68yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$187.83k
  • Archie Black (57yo)

    President

    • Tenure: 18.7yrs
    • Compensation: US$4.52m
  • Marty Leestma (60yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$181.02k
  • James Ramsey (46yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$178.95k
  • Marty Réaume (53yo)

    Independent Director

    • Tenure: 1.5yrs
    • 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$1.683b
  • Shares outstanding: 34.88m
  • 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 Analysis2019/09/16 00:07
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.