SPS COMMERCE INC

SPSCdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

SPS COMMERCE INC earns about 14% on invested capital, comfortably above its ~9% cost of capital, but has diluted owners by 3% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $17.95 and $214.18 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$385.3M1$450.9M2$536.9M3$637.8M3$751.5M3
Net income$44.6M4$55.1M5$65.8M6$77.1M6$93.3M6
Operating cash flow$112.9M7$100.1M8$132.3M9$157.4M9$178.8M9
Capital expenditure$19.6M10$19.9M11$19.8M12$20M12$26.5M12
Free cash flow (derived)$93.3M7$80.2M8$112.5M9$137.4M9$152.3M9
Total debt
Cash & equivalents$207.6M13$162.9M14$219.1M15$241M16$151.4M16
Diluted shares37.0M37.0M37.5M37.9M38.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$256.34
your share of equity
Profit it earned you last year
$24.57
Free cash flow it threw off
$40.08
Debt you’d be carrying

10 shares is a claim on $256.34 of net worth that earned you $24.57 and generated $40.08 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY21 16%FY22 15%FY23 15%FY24 13%FY25 11%

It earned about 14% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $17.95 and $214.18 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$214.18
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth19.7%
  • fcfBase$137.4M
DCF · Growth Exit 5Y
$120.3
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth19.7%
  • fcfBase$137.4M
Earnings Power Value
$17.95
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$65.8M
  • growthAssumed0.0%
Graham Number
$37.67
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years19.7%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $120.3
The three cases
Bear0.0%$55.64
Base19.7%$120.3
Bull20.0%$121.86

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 19.7%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001092699-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001092699-25-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001092699-26-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001092699-24-000012 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001092699-25-000011 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001092699-26-000012 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001092699-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001092699-25-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001092699-26-000012 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001092699-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001092699-25-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001092699-26-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001092699-23-000006 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001092699-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001092699-25-000011 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001092699-26-000012 (CashAndCashEquivalentsAtCarryingValue)