Quality Investor

SPS Commerce, Inc.

Rank #98Hypergrowth

SPSC · Nasdaq · Technology

SPS Commerce, Inc. (SPSC) — Rank #98 by gross profitability (GP/assets 0.46) · ROE 9.9% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001092699 · all metrics point-in-time as of the filing date.

About

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States.

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It offers solutions through SPS Commerce, a cloud-based platform that connects retailers, brands, distributors, manufacturers, and logistics providers, handling the complexity of modern commerce operations. The company also provides Fulfillment, a comprehensive solution designed to streamline supply chain operation that sends and receives order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations; and Analytics product that simplifies managing sell-through data from customers business partners that handle data acquisition, cleansing, normalization, and delivery. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies through single connection across all sales channels; and relationship management product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management, onboarding programs, and supplier score carding. 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.

Industry
Software - Application
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

SPSC-38.9% · -9.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$2.99B

P/E (annual)

33.8

P/S (annual)

4.0

P/B

3.2

P/OCF (annual)

16.7

Shareholder Yield

-120.4%

Employees

2,948

Industry

Software - Application

Exchange

Nasdaq

Signal Flags

4 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.46
Return on equity
9.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.20
Current ratio
2.26×
Net cash
$173.17M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
7.1%

Growth

1/2 pass
Revenue growth
288.8%
Piotroski F-Score
5 / 9
Share dilution
120.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

8.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 120.4% — per-share value needs a total required return of 128.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 23.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.9%

r = 10% (base)

8.2%

r = 12%

12.0%

Net debt / market cap: -5.5%

Base FCF: $152.3M3Y mean FCF: $13.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
12.2xmed 94.0x453.6x

P / S

Price / revenue per share

2.4xCheap
2.4xmed 3.2x4.8x

P / B

Price / book value per share

1.9xCheap
1.7xmed 2.3x3.5x

P / GP

Price / gross profit per share

3.6xCheap
3.4xmed 4.7x7.0x

P / FCF

Price / free cash flow per share

22.0xCheap
22.0xmed 48.6x316.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.46

Primary signal (Novy-Marx).

68th pctl of 38 SIC 7372 peers

Return on equity

9.9%

Gross margin

69.2%

43rd pctl of 38 SIC 7372 peers

Revenue growth (YoY)

288.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2014201520162017
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

19.2%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.20

88th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

2.26×

65th pctl of 38 SIC 7372 peers

Quick ratio

1.62×

Net cash

$173.17M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$152.27M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.63

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

7.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20122017
Hypergrowth
Startup