SPS Commerce, Inc. cash flow to debt ratio of 2.49K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

SPS Commerce, Inc.'s free cash flow has increased 10.86% from $137.35M last year to $152.27M, signaling increasing performance

SPS Commerce, Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability.

SPS Commerce, Inc.'s debt has decreased relative to shareholder equity from 0.01 last year to 0.01 today, signaling strengthened financials

SPS Commerce, Inc. has a net cash position, so leverage is healthy.

Interest expense is not separately reported in SPS Commerce, Inc.'s latest filing, so interest coverage cannot be calculated.

SPS Commerce, Inc.'s profit margin has decreased (16.42%) in the last year from 12.08% to 10.10%, signaling decreasing performance

SPS Commerce, Inc.'s short-term assets of $335.30M exceed its short-term liabilities of $154.35M

SPS Commerce, Inc.'s return on assets of 6.93% is higher than the 5.00% threshold, indicating efficient asset utilization

SPS Commerce, Inc.'s return on equity of 8.14%, is lower than 15.00%, indicating bad performance

SPS Commerce, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

SPS Commerce, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

SPS Commerce, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

SPS Commerce, Inc. has a free cash flow yield of 5.66%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

SPS Commerce, Inc.'s yearly earnings has increased 21.13% since last year from $77.05M to $93.34M, signaling increasing performance

SPS Commerce, Inc.'s yearly revenue has increased 17.83% since last year from $637.76M to $751.50M, signaling increasing performance

ROIC 9.28% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

SPS Commerce, Inc.'s 3-year revenue CAGR of 18.57% is positive, indicating growing revenue over the past 3 years

SPS Commerce, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

SPS Commerce, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

SPS Commerce, Inc. is undervalued relative to its fair value price of 76.07 based on Discounted Cash Flow model

SPS Commerce, Inc. has an earnings yield of 2.82%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

SPS Commerce, Inc. is overvalued relative to its fair value price of 37.87 based on EBITDA multiple model

SPS Commerce, Inc. has an EV/EBITDA ratio of 14.42x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

SPS Commerce, Inc. is overvalued relative to its fair value price of 52.14 based on Earnings Fair Value model

SPS Commerce, Inc. has a PEG-ratio over 1 which is considered overvalued

SPS Commerce, Inc. has a price-to-book ratio of 2.94x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

SPS Commerce, Inc. has a price-to-sales ratio of 3.58x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue