Latest Ratios: P/E Ratio 33.0x · EV/EBITDA 16.1x · ROE 10.2%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $3.4B | $7.0B | $7.3B | $4.7B | $5.3B | $3.9B | $2.0B | $1.5B | $844M | $1.2B |
| Enterprise Value | $2.8B | $3.2B | $6.7B | $7.1B | $4.6B | $5.1B | $3.8B | $1.8B | $1.3B | $720M | $1.1B |
| P/E Ratio → | 33.04 | 36.23 | 90.19 | 110.14 | 86.19 | 117.64 | 86.18 | 58.96 | 60.57 | — | 205.59 |
| P/S Ratio | 3.97 | 4.51 | 10.92 | 13.53 | 10.53 | 13.66 | 12.60 | 7.15 | 5.84 | 3.82 | 6.23 |
| P/B Ratio | 3.17 | 3.48 | 8.15 | 10.88 | 8.84 | 10.87 | 9.37 | 5.62 | 4.55 | 3.05 | 4.83 |
| P/FCF | 19.60 | 22.24 | 50.71 | 64.55 | 59.20 | 56.39 | 54.65 | 34.28 | 35.15 | 35.47 | 112.03 |
| P/OCF | 16.69 | 18.94 | 44.25 | 54.91 | 47.43 | 46.61 | 44.49 | 27.79 | 26.36 | 27.17 | 64.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.32 | 10.56 | 13.15 | 10.20 | 13.17 | 12.20 | 6.59 | 5.30 | 3.27 | 5.64 |
| EV / EBITDA | 16.10 | 18.38 | 51.38 | 63.03 | 46.29 | 63.43 | 55.43 | 33.55 | 33.40 | 35.64 | 57.78 |
| EV / EBIT | 24.03 | 26.20 | 67.72 | 82.50 | 64.50 | 94.78 | 76.06 | 47.91 | 46.45 | 72.17 | 170.60 |
| EV / FCF | — | 21.31 | 49.05 | 62.73 | 57.38 | 54.39 | 52.91 | 31.61 | 31.90 | 30.29 | 101.26 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.2% | 64.2% | 67.0% | 66.1% | 66.1% | 65.8% | 68.1% | 67.0% | 67.1% | 66.6% | 66.7% |
| Operating Margin | 15.7% | 15.7% | 13.9% | 14.4% | 15.8% | 14.3% | 16.0% | 13.8% | 10.8% | 3.8% | 3.9% |
| Net Profit Margin | 12.4% | 12.4% | 12.1% | 12.3% | 12.2% | 11.6% | 14.6% | 12.1% | 9.6% | -1.1% | 3.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.2% | 10.2% | 10.1% | 10.9% | 10.8% | 9.9% | 11.8% | 10.0% | 8.0% | -0.9% | 2.4% |
| ROA | 8.5% | 8.5% | 8.3% | 8.8% | 8.6% | 7.8% | 9.4% | 8.1% | 6.6% | -0.8% | 2.0% |
| ROIC | 12.2% | 12.2% | 12.2% | 13.6% | 15.5% | 13.9% | 15.2% | 15.0% | 11.8% | 4.4% | 4.8% |
| ROCE | 12.5% | 12.5% | 11.3% | 12.3% | 13.2% | 11.5% | 12.1% | 10.8% | 8.6% | 3.0% | 3.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | 0.02 | 0.03 | 0.04 | 0.06 | 0.07 | — | — | — |
| Debt / EBITDA | 0.06 | 0.06 | 0.10 | 0.13 | 0.17 | 0.26 | 0.35 | 0.44 | — | — | — |
| Net Debt / Equity | — | -0.15 | -0.27 | -0.31 | -0.27 | -0.39 | -0.30 | -0.44 | -0.42 | -0.44 | -0.46 |
| Net Debt / EBITDA | -0.80 | -0.80 | -1.74 | -1.83 | -1.47 | -2.34 | -1.82 | -2.83 | -3.40 | -6.09 | -6.15 |
| Debt / FCF | — | -0.93 | -1.66 | -1.82 | -1.82 | -2.00 | -1.74 | -2.67 | -3.24 | -5.18 | -10.77 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($151M) exceeds total debt ($10M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.74 | 1.74 | 2.60 | 3.07 | 2.92 | 3.43 | 2.91 | 4.29 | 4.42 | 5.09 | 5.78 |
| Quick Ratio | 1.74 | 1.74 | 2.60 | 3.07 | 2.92 | 3.43 | 2.91 | 4.29 | 3.81 | 4.50 | 5.18 |
| Cash Ratio | 0.98 | 0.98 | 1.64 | 2.11 | 1.94 | 2.50 | 2.34 | 3.14 | 3.16 | 3.79 | 4.32 |
| Asset Turnover | — | 0.64 | 0.62 | 0.65 | 0.67 | 0.63 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 2.37 | 2.93 | 3.35 |
| Days Sales Outstanding | — | 33.11 | 29.78 | 31.84 | 31.92 | 32.74 | 41.42 | 41.23 | 40.42 | 41.20 | 39.17 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 2.8% | 1.1% | 0.9% | 1.2% | 0.9% | 1.2% | 1.7% | 1.7% | — | 0.5% |
| FCF Yield | 5.1% | 4.5% | 2.0% | 1.5% | 1.7% | 1.8% | 1.8% | 2.9% | 2.8% | 2.8% | 0.9% |
| Buyback Yield | 3.8% | 3.4% | 0.5% | 0.0% | 0.9% | 0.4% | 0.5% | 1.0% | 1.4% | 0.7% | 0.0% |
| Total Shareholder Yield | 3.8% | 3.4% | 0.5% | 0.0% | 0.9% | 0.4% | 0.5% | 1.0% | 1.4% | 0.7% | 0.0% |
| Shares Outstanding | — | $38M | $38M | $37M | $37M | $37M | $36M | $36M | $35M | $35M | $34M |
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying SPSC stock.
SPS Commerce, Inc.'s current P/E ratio is 33.0x. The historical average is 73.6x. This places it at the 10th percentile of its historical range.
SPS Commerce, Inc.'s current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 53.7x.
SPS Commerce, Inc.'s return on equity (ROE) is 10.2%. The historical average is 7.6%.
Based on historical data, SPS Commerce, Inc. is trading at a P/E of 33.0x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SPS Commerce, Inc. has 64.2% gross margin and 15.7% operating margin. Operating margin between 10-20% is typical for established companies.
SPS Commerce, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Revenue growth deceleration and margin compression
Metrics are mathematically derived from official filings.
Margin Compression Undermines Earnings Power
Operating margin collapsed to 4.3% in 2026Q2 from 18.0% in 2025Q4, per reported figures, while gross margin swung 10.6 points, signaling deteriorating profitability.
The 10.6-point swing in gross margin between 2026Q2 and 2026Q1 suggests instability in revenue mix or cost structure, which may indicate competitive pricing pressure or one-off costs. Operating margin compression to 4.3% from 18.0% within two quarters implies that revenue growth is no longer translating into profit, possibly due to elevated SG&A spending. Net margin at 3.5% in 2026Q2 is well below the 13.4% seen in 2025Q4, suggesting that the company's earning power is weakening, though the high FCF margin of 29.0% indicates cash generation remains robust.
Return on Capital Decays Sharply
ROIC fell to 0.8% in 2026Q2 from 3.1% in 2025Q4, per reported data, indicating a sharp deterioration in capital efficiency, though the low capital base limits absolute impact.
ROIC has declined from a peak of 3.7% in 2024Q2 to 0.8% in 2026Q2, reflecting both margin compression and a growing asset base, particularly goodwill. The increase in goodwill to $539.4M, now 49% of total assets, has expanded the capital base without corresponding profit growth, dragging returns. This suggests that acquisitions have not yet generated sufficient returns to offset the capital deployed, and investors should monitor whether ROIC can recover as integration benefits materialize.
Working Capital Efficiency Stable but DSO Creeps
DSO rose to 33 days in 2026Q2 from 29 days in 2025Q1, per reported figures, while DPO increased to 22 days, indicating a slight lengthening of the cash conversion cycle.
The increase in DSO suggests that customers are taking longer to pay, which may indicate softening demand or a shift in customer mix. DPO also rose to 22 days from 16 days, indicating that SPSC is taking slightly longer to pay suppliers, which could be a deliberate cash management strategy. Asset turnover remains low at 0.17, typical for software companies with high margins, but the stable turnover suggests that revenue growth is not being driven by asset efficiency gains.
Minimal Leverage Provides Strategic Flexibility
Debt-to-equity stands at 0.01 with D/EBITDA at 0.17 in 2026Q1, per reported data, indicating negligible leverage and ample borrowing capacity for future investments.
Total debt has declined to $6.3M from $12.9M in 2024Q1, and the company's interest coverage is not reported, but given the minimal debt, interest expense is likely immaterial. The low leverage provides a cushion against operational volatility and suggests that the company could fund acquisitions or buybacks without straining its balance sheet. However, the high goodwill balance raises the risk of future impairment, which could impact equity and leverage ratios if written down.
Liquidity Buffer Remains Solid Despite Cash Drawdown
Current ratio improved to 2.26 in 2026Q2 from 1.64 in 2025Q1, per reported data, though cash fell from $241.0M to $173.2M, indicating a still-ample buffer.
The current ratio of 2.26 and quick ratio of 2.26 (since inventory is negligible) indicate that SPSC can cover short-term obligations comfortably. The decline in cash is partly due to aggressive buybacks, which totaled $51.2M in 2026Q2, but the company still holds a substantial cash position. Under severe stress, the liquidity position appears adequate, though the reliance on cash for buybacks could reduce the buffer if cash flows deteriorate.
P/E Misleads Due to SBC Distortion
The trailing P/E of 32.28 understates true valuation because stock-based compensation of $18.7M exceeded net income of $6.9M in 2026Q2, per reported figures, inflating reported earnings.
The P/E ratio is commonly misapplied to SPSC because reported net income is significantly boosted by non-cash stock-based compensation, which dilutes shareholders. In 2026Q2, SBC exceeded net income, meaning that economic earnings are negative when adjusted for dilution. A more appropriate metric is price-to-FCF, which at 19.14 reflects the company's cash generation, but even that may overstate value if SBC is considered a real cost. Investors should use EV/EBITDA or a cash-flow-based multiple, and adjust for SBC to assess true valuation.