SPS Commerce Inc (SPSC) Stock Analysis
Verdict: WATCH (do not buy)
SPSC trades at a PE buyout speculative premium above consensus fair value $71.50 while core revenue growth slows from 18% to 6%.
Investment score: 58/100
Analysis as of
Is SPS Commerce Inc stock worth reviewing? The TradeMates thesis
SPS Commerce Inc ($86.82) trades above analyst consensus price targets ($71.50) due to private equity takeover speculation. While Q2 2026 EPS beat estimates at $1.27 and free cash flow yield is solid at 6.4%, topline revenue growth has moderated to 6% YoY. The model assigns an investment score of 58/100 and recommends WATCH.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 68/100 (weight 15%)
- Technical Momentum: 65/100 (weight 15%)
- Earnings Quality: 82/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 38/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
SPS Commerce Inc opportunities and risks
What speaks for SPSC
- Private equity buyout optionality following acquisition reports
What speaks against SPSC
- Collapse of private equity buyout rumors causing downside re-rating
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| SPSC | 41.7x | 4.0x | 16.1x | 69.8% | 10.1% | 6.4% |
| INTA | n/a | 5.8x | n/a | 75.8% | -7.1% | 4.1% |
| WK | 93.0x | 4.4x | 62.7x | 80.2% | 4.9% | 4.8% |
| AGYS | 74.1x | 9.7x | 47.8x | 62.3% | 13.0% | 2.5% |
| MARA | n/a | 4.0x | n/a | -8.5% | -429.7% | -48.7% |
| AVPT | 44.5x | 6.7x | 42.1x | 73.4% | 15.3% | 3.2% |
| Peer median | 44.5x | 5.8x | 42.1x | 73.4% | 4.9% | 3.2% |
Frequently asked questions about SPS Commerce Inc (SPSC)
Is SPSC stock a good investment?
The TradeMates model rates SPS Commerce Inc as WATCH (do not buy) with an investment score of 58/100. SPS Commerce Inc ($86.82) trades above analyst consensus price targets ($71.50) due to private equity takeover speculation. While Q2 2026 EPS beat estimates at $1.27 and free cash flow yield is solid at 6.4%, topline revenue growth has moderated to 6% YoY. The model assigns an investment score of 58/100 and recommends WATCH. This is algorithmic model output, not personal investment advice.
Is SPSC stock a buy?
The TradeMates model verdict for SPSC is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.