SPS Commerce, Inc. (SPSC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toast, Inc.

monday.com Ltd.

ZoomInfo Technologies, Inc.

Robinhood Markets, Inc.

Nutanix, Inc.

SPS Commerce, Inc.

Elastic NV

Confluent, Inc.

CCC Intelligent Solutions Holdings, Inc.

CyberArk Software Ltd.

National Instruments Corp.

Why is SPS Commerce, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 18.30%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 166.19 MM
NET SALES(Q) Highest at USD 187.4 MM
OPERATING PROFIT(Q) Highest at USD 40.97 MM

With ROE of 8.82%, it has a expensive valuation with a 6.14 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -57.04%, its profits have risen by 18.5% ; the PEG ratio of the company is 4.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -57.04% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SPS Commerce, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SPS Commerce, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SPS Commerce, Inc.

-56.37%

-1.16

47.22%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.11%

EBIT Growth (5y)

18.30%

EBIT to Interest (avg)

71.40

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.78

Tax Ratio

25.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.48%

ROE (avg)

9.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.14

EV to EBIT

55.94

EV to EBITDA

38.05

EV to Capital Employed

6.68

EV to Sales

8.30

PEG Ratio

4.34

Dividend Yield

ROCE (Latest)

11.95%

ROE (Latest)

8.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 166.19 MM

NET SALES(Q)

Highest at USD 187.4 MM

OPERATING PROFIT(Q)

Highest at USD 40.97 MM

RAW MATERIAL COST(Y)

Fallen by -0.03% (YoY

-6What is not working for the Company

ROCE(HY)

Lowest at 10.03%

DEBT-EQUITY RATIO (HY)

Highest at -10.19 %

CASH AND EQV(HY)

Lowest at USD 202.52 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.45 times

Here's what is working for SPS Commerce, Inc.

Operating Cash Flow

Highest at USD 166.19 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 187.4 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 40.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Raw Material Cost

Fallen by -0.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 14.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for SPS Commerce, Inc.

Debt-Equity Ratio

Highest at -10.19 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 202.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 11.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio