SPS Commerce Stock Analysis, Valuation (NASDAQ:SPSC)
Watch the robo advisor video of SPS Commerce stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SPSC stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
SPS Commerce, Inc. Stock Rating 2.3/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SPSC stock analysis. We compare SPS Commerce valuation with its sector peers to gauge relative attractiveness of SPSC stock. SPS Commerce stock rating is our opinion about the business fundamentals of the company.
Should you buy SPSC stock?
- SPS Commerce's revenue growth came in at 13.8% in 2018-03.
- The company saw a significant growth in revenue with a 5 year CAGR of 22.
- The company has a good Free Cash Flow (FCF) margin of 9.2.
Should you sell SPSC stock?
- SPS Commerce had an unimpressive average operating margin of 4.11 during the Last Twelve Months (LTM).
- SPS Commerce registered an average TTM Net loss of -0.9%.
- Trading at a PE ratio of 157.6, SPSC stock is overvalued in comparison to sector average multiple of 23.9.
- The company is trading at a price to sales multiple of 5.8, which is overvalued in comparison to the Business Services sector average multiple of 1.6.
- -1.7's negative ROIC of -1.7 indicates operational inefficiency.
- SPS Commerce has a negative return on equity of -0.8. This indicates that the firm is inefficient at generating profits.
Investors can use Amigobulls SPS Commerce stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, SPS Commerce revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.