A Business at a Glance
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SPS COMMERCE INC
SPSC
$2.3B
Mkt Cap
$61.16
+3.70%
SPS COMMERCE INC (SPSC) has a current P/E ratio of 24.9, compared to its historical median P/E of 71.9. The stock is currently considered Cheap based on its historical valuation range.
SPS COMMERCE INC (SPSC) has a 5-year average return on invested capital (ROIC) of 16.1%. This indicates strong capital allocation and a potential competitive advantage.
SPS COMMERCE INC (SPSC) has a market capitalization of $2.3B. It is classified as a mid-cap stock.
SPS COMMERCE INC (SPSC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.37%.
Based on historical P/E analysis, SPS COMMERCE INC (SPSC) appears cheap. The current P/E of 24.9 is 65% below its historical median of 71.9. The estimated fair value CAGR (P/E method) is 16.6%.
SPS COMMERCE INC (SPSC) operates in the Services-Prepackaged Software industry, within the Technology sector.
SPS COMMERCE INC (SPSC) reported annual revenue of $752 million in its most recent fiscal year, based on SEC EDGAR filings.
SPS Commerce is a global supply chain network that connects retailers, brands, distributors, manufacturers, and logistics providers through shared infrastructure built to handle the complexity of modern commerce operations. Our network enables companies to connect once and immediately transact with thousands of trading partners without negotiating standards, building integrations, or maintaining compliance logic. Our network powers our portfolio of solutions that orchestrate the critical processes, protocols, and data exchanges needed to get the right product, in the right place, at the right time, every time. We have embedded deep expertise, proven processes, and compliance logic built from over 20 years of commerce intelligence into every connection, delivering a full-service experience that empowers partners to move forward faster, together. For the years ended December 31, 2025, 2024, and 2023, we generated revenues of $751.5 million, $637.8 million, and $536.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 762M | 752M | 638M | 537M | 451M | 385M |
| Net Income | 91M | 93M | 77M | 66M | 55M | 45M |
| EPS | $2.42 | $2.46 | $2.04 | $1.76 | $1.49 | $1.21 |
| Free Cash Flow | 167M | 152M | 137M | 113M | 80M | 93M |
| ROIC | 10.8% | 12.4% | 13.5% | 16.3% | 19.4% | 19.1% |
| Gross Margin | 69.3% | 69.2% | 67.0% | 66.1% | 66.1% | 65.8% |
| Debt/Equity | 0.00 | 0.01 | 0.01 | 0.02 | 0.03 | 0.04 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 117M | 118M | 89M | 77M | 71M | 55M |
| Operating Margin | 15.3% | 15.7% | 13.9% | 14.4% | 15.8% | 14.3% |
| ROE | 9.4% | 10.2% | 10.1% | 10.9% | 10.8% | 9.9% |
| Shares Outstanding | 37M | 38M | 38M | 37M | 37M | 37M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 128M | 159M | 193M | 221M | 248M | 279M | 313M | 385M | 451M | 537M | 638M | 752M | 762M |
| Gross Margin | 68.7% | 68.4% | 66.6% | 66.4% | 67.1% | 67.0% | 68.1% | 65.8% | 66.1% | 66.1% | 67.0% | 69.2% | 69.3% |
| R&D | 13M | 18M | 22M | 23M | 22M | 28M | 31M | 39M | 46M | 54M | 63M | 69M | 69M |
| SG&A | 20M | 25M | 29M | 37M | 42M | 45M | 50M | 61M | 67M | 85M | 103M | 127M | 132M |
| EBIT | 4.4M | 7.0M | 6.4M | 10.0M | 27M | 38M | 50M | 55M | 71M | 77M | 89M | 118M | 117M |
| Op. Margin | 3.4% | 4.4% | 3.3% | 4.5% | 10.8% | 13.8% | 16.0% | 14.3% | 15.8% | 14.4% | 13.9% | 15.7% | 15.3% |
| Net Income | 2.7M | 4.6M | 5.0M | 351K | 24M | 34M | 46M | 45M | 55M | 66M | 77M | 93M | 91M |
| Net Margin | 2.1% | 2.9% | 2.6% | 0.2% | 9.6% | 12.1% | 14.6% | 11.6% | 12.2% | 12.3% | 12.1% | 12.4% | 11.9% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 3.7% | 7.5% | 3.4% | 4.9% | 17.0% | 20.1% | 21.9% | 19.1% | 19.4% | 16.3% | 13.5% | 12.4% | 10.8% |
| ROE | 1.4% | 2.1% | 2.0% | 0.1% | 7.9% | 10.0% | 11.8% | 9.9% | 10.8% | 10.9% | 10.1% | 10.2% | 9.4% |
| ROA | 1.2% | 1.8% | 1.8% | 0.1% | 6.6% | 8.1% | 9.4% | 7.8% | 8.6% | 8.8% | 8.3% | 8.5% | 7.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 17M | 14M | 19M | 31M | 55M | 72M | 89M | 113M | 100M | 132M | 157M | 179M | 194M |
| Free Cash Flow | 9.2M | 5.7M | 11M | 24M | 41M | 58M | 72M | 93M | 80M | 113M | 137M | 152M | 167M |
| Owner Earnings | 5.7M | 1.8M | 4.1M | 11M | 34M | 46M | 56M | 71M | 50M | 68M | 84M | 104M | 115M |
| CapEx | 7.6M | 8.8M | 8.0M | 7.3M | 14M | 14M | 16M | 20M | 20M | 20M | 20M | 27M | 28M |
| Maint. CapEx | 5.7M | 6.3M | 6.6M | 7.2M | 8.6M | 11M | 13M | 15M | 16M | 19M | 19M | 21M | 22M |
| Growth CapEx | 1.9M | 2.5M | 1.4M | 63K | 5.2M | 2.5M | 3.3M | 4.8M | 3.5M | 1.1M | 1.3M | 5.4M | 5.5M |
| D&A | 5.7M | 6.3M | 6.6M | 7.2M | 8.6M | 11M | 13M | 15M | 16M | 19M | 19M | 21M | 22M |
| CapEx/OCF | 45.2% | 60.7% | 42.7% | 23.4% | 25.0% | 18.9% | 18.6% | 17.4% | 19.9% | 14.9% | 12.7% | 14.8% | 14.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 5.8M | 20M | 21M | 19M | 20M | 43M | 0 | 38M | 114M | 121M |
| Buyback Yield | N/A | N/A | N/A | 0.7% | 1.4% | 1.0% | 0.5% | 0.4% | 0.9% | N/A | 0.5% | 3.3% | 5.4% |
| Stock-Based Comp | 5.4M | 6.4M | 8.0M | 13M | 13M | 15M | 19M | 28M | 33M | 46M | 55M | 54M | 58M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -111M | -204M | N/A | N/A | N/A | -190M | -165M | -237M | -197M | -261M | -229M | -144M | -154M |
| Cash & Equiv. | 131M | 122M | 116M | 123M | 134M | 179M | 150M | 208M | 163M | 219M | 241M | 151M | 154M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.10 | 0.09 | 0.19 | 0.18 | 0.21 | 0.07 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.01 | 0.00 |
| Interest Coverage | 23.4 | 35.6 | 10.6 | 9.7 | 11.5 | 13.0 | 45.5 | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | 205M | 231M | 258M | 288M | 319M | 355M | 421M | 484M | 537M | 667M | 855M | 974M | 962M |
| Total Assets | 244M | 262M | 298M | 340M | 386M | 447M | 526M | 616M | 673M | 824M | 1.0B | 1.2B | 1.2B |
| Total Liabilities | 39M | 40M | 49M | 52M | 67M | 93M | 106M | 132M | 136M | 156M | 177M | 196M | 199M |
| Intangibles | 19M | 15M | 20M | 17M | 23M | 23M | 60M | 59M | 88M | 107M | 181M | 216M | 206M |
| Retained Earnings | -44M | -39M | -34M | -8.6M | 15M | 49M | 93M | 138M | 193M | 259M | 336M | 429M | 449M |
| Working Capital | 138M | 143M | 154M | 180M | 193M | 224M | 191M | 250M | 212M | 271M | 235M | 181M | 174M |
| Current Assets | 162M | 167M | 186M | 224M | 250M | 292M | 271M | 352M | 323M | 401M | 382M | 335M | 329M |
| Current Liabilities | 25M | 24M | 32M | 44M | 57M | 68M | 80M | 103M | 111M | 131M | 147M | 154M | 155M |
| Per Share Data | |||||||||||||
| EPS | 0.08 | 0.14 | 0.15 | 0.01 | 0.34 | 0.94 | 1.26 | 1.21 | 1.49 | 1.76 | 2.04 | 2.46 | 2.42 |
| Owner EPS | 0.17 | 0.05 | 0.12 | 0.32 | 0.48 | 1.28 | 1.56 | 1.91 | 1.36 | 1.82 | 2.23 | 2.74 | 3.10 |
| Book Value | 6.07 | 6.73 | 7.53 | 8.41 | 4.54 | 9.90 | 11.63 | 13.14 | 14.51 | 17.85 | 22.63 | 25.67 | 26.04 |
| Cash Flow/Share | 0.50 | 0.42 | 0.55 | 0.91 | 0.78 | 2.00 | 2.45 | 3.06 | 2.70 | 3.54 | 4.17 | 4.71 | 3.05 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 33.8M | 34.4M | 34.2M | 34.3M | 70.2M | 35.9M | 36.2M | 36.9M | 37.0M | 37.4M | 37.8M | 37.9M | 36.9M |
| Valuation | |||||||||||||
| P/E Ratio | 358.1 | 263.6 | 213.7 | N/A | 59.8 | 59.7 | 86.0 | 119.0 | 83.9 | 111.5 | 90.9 | 37.4 | 25.3 |
| P/FCF | 105.2 | 215.6 | 112.2 | 35.1 | 69.2 | 34.6 | 54.4 | 56.9 | 57.7 | 65.2 | 51.0 | 22.9 | 13.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 18.0 |
| Price/Book | 4.7 | 5.5 | 4.9 | 3.0 | 4.5 | 5.7 | 9.3 | 11.0 | 8.6 | 11.0 | 8.2 | 3.6 | 2.3 |
| Price/Sales | 7.7 | 7.4 | 5.3 | 4.6 | 5.4 | 6.6 | 8.2 | 11.4 | 10.0 | 11.4 | 11.1 | 6.4 | 3.0 |
| FCF Yield | 1.0% | 0.5% | 0.9% | 2.8% | 2.9% | 2.9% | 1.8% | 1.8% | 1.7% | 1.5% | 2.0% | 4.4% | 7.4% |
| Market Cap | 968M | 1.2B | 1.2B | 856M | 1.4B | 2.0B | 3.9B | 5.3B | 4.6B | 7.3B | 7.0B | 3.5B | 2.3B |
| Avg. Price | 29.25 | 34.18 | 29.56 | 28.98 | 37.99 | 51.16 | 70.49 | 119.17 | 122.42 | 163.35 | 187.98 | 127.20 | 61.16 |
| Year-End Price | 28.65 | 35.58 | 35.26 | 24.38 | 40.69 | 56.11 | 108.32 | 144.02 | 125.00 | 196.21 | 185.53 | 91.92 | 61.16 |
SPS COMMERCE INC passes 8 of 9 quality checks, indicating strong fundamentals.
SPS COMMERCE INC trades at 24.9x trailing earnings, compared to its 15-year median P/E of 71.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.0x vs a median of 54.4x. The company's 5-year average ROIC is 16.1% with a gross margin of 66.8%. Total shareholder yield (buybacks) is 5.4%. At current prices, the estimated annualized return to fair value is +16.3%.
SPS COMMERCE INC (SPSC) has a net profit margin of 12.4%. This is a healthy margin.
SPS COMMERCE INC (SPSC) generated $152 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SPS COMMERCE INC (SPSC) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
SPS COMMERCE INC (SPSC) reported earnings per share (EPS) of $2.46 in its most recent fiscal year.
SPS COMMERCE INC (SPSC) has a return on equity (ROE) of 10.2%. This indicates moderate shareholder returns.
SPS COMMERCE INC (SPSC) has a 5-year average gross margin of 66.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for SPS COMMERCE INC (SPSC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SPS COMMERCE INC (SPSC) has a book value per share of $25.67, based on its most recent annual SEC filing.