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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toast, Inc.

CCC Intelligent Solutions Holdings, Inc.

monday.com Ltd.

Elastic NV

ZoomInfo Technologies, Inc.

CyberArk Software Ltd.

SPS Commerce, Inc.

Confluent, Inc.

Robinhood Markets, Inc.

Nutanix, Inc.

National Instruments Corp.

Why is SPS Commerce, Inc. ?

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 18.72%

Flat results in Mar 26

CASH AND EQV(HY) Lowest at USD 305.63 MM
OPERATING PROFIT MARGIN(Q) Lowest at 20.67 %
PRE-TAX PROFIT(Q) Lowest at USD 25.96 MM

With ROE of 9.58%, it has a fair valuation with a 2.19 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 -59.91%, its profits have risen by 21.1% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 100%

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -59.91% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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.

-59.31%

-1.43

48.92%

S&P 500

20.78%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.17%

EBIT Growth (5y)

18.72%

EBIT to Interest (avg)

71.40

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.77

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

2.19

EV to EBIT

16.77

EV to EBITDA

11.24

EV to Capital Employed

2.40

EV to Sales

2.64

PEG Ratio

1.10

Dividend Yield

ROCE (Latest)

14.31%

ROE (Latest)

9.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 194.43 MM

RAW MATERIAL COST(Y)

Fallen by -0.65% (YoY

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 305.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.67 %

PRE-TAX PROFIT(Q)

Lowest at USD 25.96 MM

NET PROFIT(Q)

Lowest at USD 19.73 MM

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

Operating Cash Flow

Highest at USD 194.43 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)

Raw Material Cost

Fallen by -0.65% (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

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

Operating Profit Margin

Lowest at 20.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 25.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 19.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 305.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents