Is SPS Commerce Stock a Good Investment?
SPS Commerce Investment Advice | SPSC |
- Examine SPS Commerce's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research SPS Commerce's leadership team and their track record. Good management can help SPS Commerce navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact SPS Commerce's business and its evolving consumer preferences.
- Compare SPS Commerce's performance and market position to its competitors. Analyze how SPS Commerce is positioned in terms of product offerings, innovation, and market share.
- Check if SPS Commerce pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about SPS Commerce's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in SPS Commerce stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if SPS Commerce is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine SPS Commerce Stock
Researching SPS Commerce's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has Price/Earnings (P/E) ratio of 103.21. SPS Commerce had not issued any dividends in recent years. The entity had 2:1 split on the 23rd of August 2019.
To determine if SPS Commerce is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding SPS Commerce's research are outlined below:
| SPS Commerce generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are owned by institutional investors |
SPS Commerce uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in SPS Commerce. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to SPS Commerce's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
SPS Commerce's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.21 B.SPS Commerce's profitablity analysis
The company has Profit Margin (PM) of 0.12 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.14 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.14.Determining SPS Commerce's profitability involves analyzing its financial statements and using various financial metrics to determine if SPS Commerce is a good buy. For example, gross profit margin measures SPS Commerce's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of SPS Commerce's profitability and make more informed investment decisions.
Please note, the presentation of SPS Commerce's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, SPS Commerce's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of SPS Commerce's management manipulating its earnings.
Basic technical analysis of SPS Stock
As of the 25th of February, SPS Commerce has the risk adjusted performance of (0.15), and Variance of 5.88. Compared to fundamental indicators, the technical analysis model makes it possible for you to check available technical drivers of SPS Commerce, as well as the relationship between them.SPS Commerce's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific SPS Commerce insiders, such as employees or executives, is commonly permitted as long as it does not rely on SPS Commerce's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases SPS Commerce insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
SPS Commerce's Outstanding Corporate Bonds
SPS Commerce issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. SPS Commerce uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most SPS bonds can be classified according to their maturity, which is the date when SPS Commerce has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US7846ELAD98 Corp BondUS7846ELAD98 | View | |
| SSC Technologies 55 Corp BondUS78466CAC01 | View | |
| US7846ELAE71 Corp BondUS7846ELAE71 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand SPS Commerce's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing SPS Commerce's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (1.12) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (459.58) | |||
| Standard Deviation | 2.42 | |||
| Variance | 5.88 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.54) | |||
| Total Risk Alpha | (0.55) | |||
| Treynor Ratio | (1.13) | |||
| Maximum Drawdown | 17.08 | |||
| Value At Risk | (3.50) | |||
| Potential Upside | 2.35 | |||
| Skewness | (2.81) | |||
| Kurtosis | 14.66 |
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (1.12) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (459.58) | |||
| Standard Deviation | 2.42 | |||
| Variance | 5.88 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.54) | |||
| Total Risk Alpha | (0.55) | |||
| Treynor Ratio | (1.13) | |||
| Maximum Drawdown | 17.08 | |||
| Value At Risk | (3.50) | |||
| Potential Upside | 2.35 | |||
| Skewness | (2.81) | |||
| Kurtosis | 14.66 |
Consider SPS Commerce's intraday indicators
SPS Commerce intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of SPS Commerce stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
SPS Commerce time-series forecasting models is one of many SPS Commerce's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary SPS Commerce's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
SPS Stock media impact
Far too much social signal, news, headlines, and media speculation about SPS Commerce that are available to investors today. That information is available publicly through SPS media outlets and privately through word of mouth or via SPS internal channels. However, regardless of the origin, that massive amount of SPS data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of SPS Commerce news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of SPS Commerce relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to SPS Commerce's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive SPS Commerce alpha.
SPS Commerce Corporate Executives
Elected by the shareholders, the SPS Commerce's board of directors comprises two types of representatives: SPS Commerce inside directors who are chosen from within the company, and outside directors, selected externally and held independent of SPS. The board's role is to monitor SPS Commerce's management team and ensure that shareholders' interests are well served. SPS Commerce's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, SPS Commerce's outside directors are responsible for providing unbiased perspectives on the board's policies.
| Kimberly Nelson | CFO, Principal Accounting Officer and Executive VP | Profile | |
| James Frome | COO and Executive VP | Profile | |
| Jamie Thingelstad | Senior CTO | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in SPS Commerce. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. For information on how to trade SPS Stock refer to our How to Trade SPS Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SPS Commerce. If investors know SPS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SPS Commerce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of SPS Commerce is measured differently than its book value, which is the value of SPS that is recorded on the company's balance sheet. Investors also form their own opinion of SPS Commerce's value that differs from its market value or its book value, called intrinsic value, which is SPS Commerce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SPS Commerce's market value can be influenced by many factors that don't directly affect SPS Commerce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between SPS Commerce's value and its price, as these two are different measures arrived at by various means. Investors typically determine if SPS Commerce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SPS Commerce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.