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Company Analysis

SPS Commerce, Inc. SPSC

A comprehensive view of key metrics, scores, and financial health for SPS Commerce, Inc.

Overview of SPS Commerce, Inc.

SPSC NMS
Technology Software - Application Framework: Software & SaaS Mid Cap
SPS Commerce, Inc. (SPSC), is a Mid Cap company, in the Software - Application industry, last closed at $85.08, about 6.8% undervalued vs fair value, +5.7% 1Y return, ranked 494/780 in sector.
Metrics P/E 36.3× Rev Growth 17.8% ROE 10.2% Gross Margin 69.2%
USD 85.08
2.52%
(Delayed)
• Vol 90d: 43.3%
52-Week Range
Market Cap
$3.02B
Enterprise Value
$2.84B
Overall Score
View breakdown
Overall
Growth
Weak
Profitability
Good
Health
Good
Efficiency
Good
Valuation
Weak
Growth
Weak
Profitability
Good
Health
Good
Efficiency
Good
Valuation
Weak
Completeness: 82%
Confidence: 90%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.spscommerce.com
HQ Minneapolis, MN
Employees 2,948
Fiscal year Dec 31

Next Events

No upcoming events available.

Fair Value Snapshot

Bear Base Bull
$83
$91
$100
Current: $85.08 +7% vs base

Engine Room Money Flow™

Mid Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$751.5M
17.8%%
Gross Profit
$519.9M
21.7%%
Operating Income (GAAP)
$118.3M
33.1%%
Operating Cash Flow
$178.8M
13.6%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
69.2%
Good

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$114.3M
75.1% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
3
Active Leaks
2/3
Improving
0
High Impact
0
Critical
Locked Leak
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Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating SPS Commerce, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
72
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.71), consistent with premium software economics.
  • Consistent Subscription Growth Revenue consistency is strong (score 0.97), pointing to a sticky customer base.

Key risks

  • FCF Trend Is Softening FCF trend is weak (score 0.29), suggesting cash scalability is deteriorating.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
83
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 96% Coverage
Trade-Off Triangle Visualization A ternary plot showing SPSC's balance between Growth (28.3%), Profitability (34.4%), and Safety (37.3%). Growth 28% Safety 37% Profitability 34%

Click axes to expand details. Marker shows current allocation.

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Growth

60th percentile vs peers
60
Key Signals
Rev Growth YoY 17.8% 67p Revenue CAGR 3Y 18.6% 71p Def Rev Growth 0.5% 37p Buyback % -0.4% 69p EPS Growth YoY 20.7% 47p
Strengths
  • Cash to Debt Ratio in top 20% of peers (21.04, 88th percentile)
  • Interest Coverage Ratio in top 20% of peers (501.28, 98th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Growth above peer median with strong metric coverage (88%)
Risks

No significant risks identified for this axis.

Profitability

73th percentile vs peers
73
Key Signals
Strengths
Risks
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Safety

79th percentile vs peers
80
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for SPS Commerce, Inc..

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

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  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$90.90
- - -
+6.8% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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