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SPS Commerce

Nasdaq:SPSC
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPSC
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Software
Company description

SPS Commerce, Inc. provides cloud-based supply chain management solutions worldwide. The last earnings update was 53 days ago. More info.


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SPSC Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:SPSC
-0.5%
US Software
0.3%
US Market
1 Year Returns
38%
NasdaqGS:SPSC
20.8%
US Software
0.7%
US Market
SPSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SPS Commerce (SPSC) -0.9% 4.4% -1.7% 38% 86.6% 75.1%
US Software -0.5% -0% 5.1% 20.8% 122.2% 149.6%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • SPSC outperformed the Software industry which returned 20.8% over the past year.
  • SPSC outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
SPSC
Industry
5yr Volatility vs Market

Value

 Is SPS Commerce undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SPS Commerce to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SPS Commerce.

NasdaqGS:SPSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SPSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 21%) (1.12%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%)
9.27%

Discounted Cash Flow Calculation for NasdaqGS:SPSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SPS Commerce is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SPSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.27%)
2019 48.20 Analyst x5 44.11
2020 55.95 Analyst x5 46.86
2021 62.22 Est @ 11.21% 47.69
2022 67.62 Est @ 8.67% 47.42
2023 72.27 Est @ 6.89% 46.39
2024 76.35 Est @ 5.64% 44.84
2025 79.99 Est @ 4.77% 42.99
2026 83.31 Est @ 4.16% 40.98
2027 86.42 Est @ 3.73% 38.90
2028 89.38 Est @ 3.43% 36.82
Present value of next 10 years cash flows $437.00
NasdaqGS:SPSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $89.38 × (1 + 2.73%) ÷ (9.27% – 2.73%)
$1,403.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,403.21 ÷ (1 + 9.27%)10
$578.05
NasdaqGS:SPSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $437.00 + $578.05
$1,015.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,015.06 / 17.91
$56.66
NasdaqGS:SPSC Discount to Share Price
Calculation Result
Value per share (USD) From above. $56.66
Current discount Discount to share price of $106.16
= -1 x ($106.16 - $56.66) / $56.66
-87.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SPS Commerce is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SPS Commerce's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SPS Commerce's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SPSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.59
NasdaqGS:SPSC Share Price ** NasdaqGS (2019-06-17) in USD $106.16
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 50.61x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SPS Commerce.

NasdaqGS:SPSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SPSC Share Price ÷ EPS (both in USD)

= 106.16 ÷ 1.59

66.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does SPS Commerce's expected growth come at a high price?
Raw Data
NasdaqGS:SPSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 66.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
15.6%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:SPSC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 66.92x ÷ 15.6%

4.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SPS Commerce is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SPS Commerce's assets?
Raw Data
NasdaqGS:SPSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.93
NasdaqGS:SPSC Share Price * NasdaqGS (2019-06-17) in USD $106.16
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.75x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:SPSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SPSC Share Price ÷ Book Value per Share (both in USD)

= 106.16 ÷ 18.93

5.61x

* Primary Listing of SPS Commerce.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SPS Commerce is good value based on assets compared to the US Software industry average.
X
Value checks
We assess SPS Commerce's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. SPS Commerce has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SPS Commerce expected to grow at an attractive rate?
  • SPS Commerce's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • SPS Commerce's earnings growth is expected to exceed the United States of America market average.
  • SPS Commerce's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SPSC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SPSC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 15.6%
NasdaqGS:SPSC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 9.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SPSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SPSC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 334 38 1
2020-12-31 301 72 32 11
2019-12-31 276 62 26 11
NasdaqGS:SPSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 256 56 27
2018-12-31 248 55 24
2018-09-30 242 47 7
2018-06-30 235 35 1
2018-03-31 227 30 1
2017-12-31 220 31 0
2017-09-30 213 30 9
2017-06-30 206 28 9
2017-03-31 200 22 8
2016-12-31 193 19 5
2016-09-30 185 18 6
2016-06-30 176 21 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SPS Commerce's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
  • SPS Commerce's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SPSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from SPS Commerce Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPSC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.03 2.03 2.03 1.00
2020-12-31 1.68 1.96 1.43 10.00
2019-12-31 1.44 1.47 1.42 10.00
NasdaqGS:SPSC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.59
2018-12-31 1.39
2018-09-30 0.42
2018-06-30 0.07
2018-03-31 0.04
2017-12-31 0.02
2017-09-30 0.52
2017-06-30 0.54
2017-03-31 0.45
2016-12-31 0.29
2016-09-30 0.36
2016-06-30 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if SPS Commerce will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess SPS Commerce's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SPS Commerce has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SPS Commerce performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SPS Commerce's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (4324.4% vs 42.9%)
  • SPS Commerce's earnings growth has exceeded the US Software industry average in the past year (4324.4% vs 32.2%).
Earnings and Revenue History
SPS Commerce's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SPS Commerce Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 256.08 27.43 115.50 23.15
2018-12-31 248.24 23.87 113.58 22.09
2018-09-30 241.59 7.16 118.37 21.73
2018-06-30 234.78 1.28 116.62 23.13
2018-03-31 227.30 0.62 112.65 23.21
2017-12-31 220.09 0.35 108.72 23.18
2017-09-30 213.09 8.93 101.80 22.82
2017-06-30 206.32 9.27 99.09 21.84
2017-03-31 199.58 7.65 96.39 22.02
2016-12-31 193.15 4.96 95.70 21.98
2016-09-30 184.58 6.04 91.01 21.08
2016-06-30 175.65 4.80 87.41 20.00
2016-03-31 167.15 5.10 83.80 18.95
2015-12-31 158.52 4.64 80.19 17.95
2015-09-30 151.57 3.36 77.65 16.88
2015-06-30 143.72 2.93 74.78 15.72
2015-03-31 135.98 2.92 71.04 14.59
2014-12-31 127.95 2.70 67.22 13.49
2014-09-30 120.52 2.14 64.11 12.58
2014-06-30 115.02 1.58 61.49 12.05
2014-03-31 109.58 1.23 58.93 11.34
2013-12-31 104.39 1.05 56.81 10.87
2013-09-30 98.90 1.12 53.93 10.48
2013-06-30 92.16 1.03 50.92 9.76
2013-03-31 84.32 1.17 47.20 8.94
2012-12-31 77.11 1.22 43.56 8.17
2012-09-30 70.48 14.00 40.50 7.23
2012-06-30 65.74 14.00 38.26 6.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SPS Commerce has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SPS Commerce used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • SPS Commerce has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SPS Commerce's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SPS Commerce has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SPS Commerce's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SPS Commerce's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of SPS Commerce's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • SPS Commerce has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SPS Commerce Company Filings, last reported 2 months ago.

NasdaqGS:SPSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 330.70 21.23 185.40
2018-12-31 318.97 0.00 178.40
2018-09-30 310.57 0.00 189.40
2018-06-30 294.69 0.00 172.74
2018-03-31 288.35 0.00 165.82
2017-12-31 288.11 0.00 163.32
2017-09-30 285.17 0.00 163.85
2017-06-30 279.03 0.00 158.64
2017-03-31 273.41 0.00 154.26
2016-12-31 249.27 0.00 138.95
2016-09-30 244.81 0.00 125.25
2016-06-30 236.84 0.00 128.17
2016-03-31 233.39 0.00 120.90
2015-12-31 222.19 0.00 129.06
2015-09-30 214.73 0.00 122.90
2015-06-30 211.91 0.00 121.34
2015-03-31 208.22 0.00 133.55
2014-12-31 205.09 0.00 130.80
2014-09-30 200.92 0.00 140.82
2014-06-30 198.14 0.00 136.51
2014-03-31 195.10 0.00 134.60
2013-12-31 192.77 0.00 131.29
2013-09-30 142.38 0.00 80.81
2013-06-30 139.53 0.00 75.13
2013-03-31 136.99 0.00 72.56
2012-12-31 134.82 0.00 66.05
2012-09-30 132.83 0.00 69.72
2012-06-30 62.40 0.00 35.50
  • 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.
X
Financial health checks
We assess SPS Commerce's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SPS Commerce has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SPS Commerce dividends.
If you bought $2,000 of SPS Commerce shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SPSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SPSC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of SPS Commerce's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess SPS Commerce's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SPS Commerce afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SPS Commerce has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Archie Black
COMPENSATION $4,520,963
AGE 56
TENURE AS CEO 18.4 years
CEO Bio

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 16 years of management, finance and administration experience in rapid-growth environments to SPS Commerce Inc. He joined SPS Commerce, Inc. in 1998. He served as Senior Vice President and Chief Financial Officer of SPS Commerce Inc. from 1998 to 2001. He served as Senior Vice President and Chief Financial Officer at Investment Advisers, in Minneapolis, Minn., where he directed both the Minneapolis and London organizations. He spent three years at PriceWaterhouse. He has been a Director of Proto Labs, Inc. since March 01, 2016. He has been Director of SPS Commerce Inc. since 2001. He is a Certified Public Accountant (CPA). He has a Bachelor of Science from Marquette University.

CEO Compensation
  • Archie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Archie's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the SPS Commerce management team in years:

5.8
Average Tenure
51.5
Average Age
  • The average tenure for the SPS Commerce management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Archie Black

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
18.4 yrs

Kim Nelson

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
50
TENURE
11.6 yrs

Jim Frome

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
53
TENURE
6.8 yrs

Jamie Thingelstad

TITLE
Senior VP & CTO
AGE
46
TENURE
5.8 yrs

Dan Juckniess

TITLE
Senior VP & Chief Sales Officer
TENURE
3.3 yrs

Mark O’Leary

TITLE
Senior VP & Chief Marketing Officer
TENURE
0.2 yrs

Mike Carey

TITLE
Senior VP & Chief Human Resources Officer
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the SPS Commerce board of directors in years:

8.9
Average Tenure
56
Average Age
  • The tenure for the SPS Commerce board of directors is about average.
Board of Directors

Tami Reller

TITLE
Non-Executive Chairman
COMPENSATION
$183K
AGE
54
TENURE
1.1 yrs

Archie Black

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
18.4 yrs

Marty Leestma

TITLE
Independent Director
COMPENSATION
$181K
AGE
59
TENURE
13.3 yrs

Sven Wehrwein

TITLE
Independent Director
COMPENSATION
$188K
AGE
67
TENURE
10.9 yrs

Phil Soran

TITLE
Director
COMPENSATION
$184K
AGE
61
TENURE
8.9 yrs

James Ramsey

TITLE
Independent Director
COMPENSATION
$179K
AGE
45
TENURE
5.3 yrs

Marty Réaume

TITLE
Independent Director
COMPENSATION
$275K
AGE
52
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Sell Archie Black Individual 14. Feb 19 15. Feb 19 -7,982 $108.48 $-854,785
09. Nov 18 Sell Martin Leestma Individual 07. Nov 18 07. Nov 18 -8,316 $95.74 $-796,198
02. Aug 18 Sell Archie Black Individual 31. Jul 18 31. Jul 18 -10,000 $85.33 $-853,347
X
Management checks
We assess SPS Commerce's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SPS Commerce has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Taking A Look At SPS Commerce, Inc.'s (NASDAQ:SPSC) ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for SPS Commerce: 8.3% = US$27m ÷ US$331m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining SPS Commerce's Debt And Its 8.3% Return On Equity SPS Commerce is free of net debt, which is a positive for shareholders. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Want To Invest In SPS Commerce, Inc. (NASDAQ:SPSC) Today? Read This First

The stock is trading at a lofty price-to-earnings (PE) ratio of 63.39x, telling us that SPS Commerce is overvalued based on current earnings compared to the Software industry average of 54.58x , and overvalued compared to the US market average ratio of 17.36x. … But, to be able to properly assess the value of a high-growth stock such as SPS Commerce, we must incorporate its earnings growth in our valuation. … So, when we include the growth factor in our analysis, SPS Commerce appears overvalued , based on its fundamentals.

Simply Wall St -

Is SPS Commerce, Inc.'s (NASDAQ:SPSC) CEO Pay Justified?

First, this article will compare CEO compensation with compensation at similar sized companies. … And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. … How Does Archie Black's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is SPS Commerce, Inc. (NASDAQ:SPSC) A Volatile Stock?

Volatility is considered to be a measure of risk in modern finance theory. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

How Many SPS Commerce, Inc. (NASDAQ:SPSC) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in SPS Commerce, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … SPS Commerce Insider Transactions Over The Last Year.

Simply Wall St -

Is SPS Commerce's (NASDAQ:SPSC) 156% Share Price Increase Well Justified?

(NASDAQ:SPSC) share price is 156% higher than it was three years ago. … During three years of share price growth, SPS Commerce achieved compound earnings per share growth of 71% per year. … This EPS growth is higher than the 37% average annual increase in the share price.

Simply Wall St -

Should You Investigate SPS Commerce, Inc. (NASDAQ:SPSC) At US$106?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on SPS Commerce’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

SPS Commerce, Inc. (NASDAQ:SPSC) Has Attractive Fundamentals

Help shape the future of investing tools and receive a $20 prize! … (NASDAQ:SPSC) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

How Should Investors Feel About SPS Commerce, Inc.'s (NASDAQ:SPSC) CEO Pay?

Archie Black has been the CEO of SPS Commerce, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Archie Black's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Be Concerned About SPS Commerce, Inc.'s (NASDAQ:SPSC) ROE?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.023 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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, grocers, distributors, and logistics firms manage and fulfill orders, administer sell-through performance, and source new items. The company offers Trading Partner Community solution, which enables retailers, grocers, and distributors to introduce changes to their supply chain requirements to their trading partner community, and onboard new vendors to receive their first orders; Trading Partner Fulfillment solution that provides fulfillment automation and replaces or augments an organization’s existing staff and trading partner electronic communication infrastructure; and Trading Partner Assortment solution to manage individual attributes associated with each item a retailer or supplier sells. It also provides Trading Partner Analytics solution, which consists of data analytics applications that allow customers to enhance their visibility and analysis of their supply chains; Trading Partner Sourcing solutions that enables retailers to source providers of new items, suppliers to connect with new retailers, and retailing community; and Other Trading Partner Solutions, such as barcode labeling, planogram services, and scan and pack application that helps trading partners process information to streamline the picking and packaging process. The company sells its solutions through retailer, supplier, and logistic sales representatives to small- to mid-sized suppliers, as well as retailers, distributors, third-party logistics providers, and other trading partners. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

Details
Name: SPS Commerce, Inc.
SPSC
Exchange: NasdaqGS
Founded: 1987
$1,901,759,582
17,914,088
Website: http://www.spscommerce.com
Address: SPS Commerce, Inc.
333 South Seventh Street,
Suite 1000,
Minneapolis,
Minnesota, 55402,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SPSC Common Stock Nasdaq Global Select US USD 22. Apr 2010
BST S86 Common Stock Boerse-Stuttgart DE EUR 22. Apr 2010
Number of employees
Current staff
Staff numbers
1,231
SPS Commerce employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 00:17
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/06
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.