Sps Commerce Inc. (SPSC) intrinsic value & 10-year financials

Sps Commerce Inc. (SPSC) has a Graham intrinsic value of $81.71 per share. At $85.25 on Oct 17, 2026, the stock trades 4% above that value. Over the last 10 fiscal years revenue grew 16.3% a year to $751.5M, with an average return on invested capital of 11.6%.

Graham intrinsic value
$81.71
Share price (Oct 17, 2026)
$85.25
Price vs Graham value
4% above
Market cap
$3.2B
Revenue (FY2025)
$751.5M
Revenue growth (10-yr CAGR)
16.3%
ROIC (10-yr avg)
11.6%
Free cash flow (FY2025)
$152.3M

SPSC 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $751.5M $93.3M $2.46 $152.3M 15.7% 12.3%
FY2024 $637.8M $77.1M $2.04 $137.4M 13.9% 12.8%
FY2023 $536.9M $65.8M $1.76 $112.5M 14.4% 14.1%
FY2022 $450.9M $55.1M $1.49 $80.2M 15.8% 16.2%
FY2021 $385.3M $44.6M $1.21 $93.3M 14.3% 15.7%
FY2020 $312.6M $45.6M $1.26 $72.1M 16.0% 17.8%
FY2019 $279.1M $33.7M $0.94 $58.2M 13.8% 15.7%
FY2018 $248.2M $23.9M $0.68 $41.3M 10.8% 7.6%
FY2017 $220.1M -$2.4M -$0.07 $23.8M 3.8% 1.6%
FY2016 $193.2M $5.7M $0.17 $10.8M 3.9% 1.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

SPS COMMERCE INC is a consistent compounder, expanding top-line revenue at 16.3% annually over the past decade.

SPS COMMERCE INC returns on capital have been average, hovering around 14.9% ROIC over the decade.

SPS COMMERCE INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, SPS COMMERCE INC is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $81.71 per share.

SPSC stock: frequently asked questions

What is the intrinsic value of Sps Commerce Inc. (SPSC) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, SPSC's intrinsic value is about $81.71 per share.

Is SPSC stock undervalued?

At $85.25 (close on Oct 17, 2026), SPSC trades 4% above its Graham value of $81.71. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Sps Commerce Inc. grown?

Revenue went from $193.2M in fiscal 2016 to $751.5M in fiscal 2025, a compound annual growth rate of 16.3%. Net income was $93.3M in fiscal 2025.

Does Sps Commerce Inc. generate free cash flow?

Sps Commerce Inc. generated $152.3M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is SPSC's return on invested capital?

Average ROIC over the last 10 fiscal years was 11.6%, and average return on equity was 8.3%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this SPSC data come from?

From Sps Commerce Inc.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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