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SPS Commerce (SPS Commerce) Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

SPS Commerce has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for SPS Commerce's Piotroski F-Score or its related term are showing as below:

SPSC' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of SPS Commerce was 8. The lowest was 4. And the median was 6.


SPS Commerce Piotroski F-Score Historical Data

The historical data trend for SPS Commerce's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SPS Commerce Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 6.00 6.00 8.00 8.00

SPS Commerce Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 7.00 7.00 8.00

Competitive Comparison

For the Software - Infrastructure subindustry, SPS Commerce's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SPS Commerce Piotroski F-Score Distribution

For the Software industry and Technology sector, SPS Commerce's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where SPS Commerce's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 15.289 + 14.682 + 16.842 + 19.011 = $65.8 Mil.
Cash Flow from Operations was 21.631 + 34.039 + 43.842 + 32.786 = $132.3 Mil.
Revenue was 125.868 + 130.416 + 135.661 + 144.965 = $536.9 Mil.
Gross Profit was 82.904 + 85.872 + 90.14 + 95.925 = $354.8 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(672.914 + 696.927 + 735.538 + 787.408 + 823.844) / 5 = $743.3262 Mil.
Total Assets at the begining of this year (Dec22) was $672.9 Mil.
Long-Term Debt & Capital Lease Obligation was $9.6 Mil.
Total Current Assets was $401.4 Mil.
Total Current Liabilities was $130.7 Mil.
Net Income was 12.603 + 10.753 + 15.863 + 15.915 = $55.1 Mil.

Revenue was 105.193 + 109.178 + 114.486 + 122.018 = $450.9 Mil.
Gross Profit was 69.804 + 71.648 + 75.881 + 80.477 = $297.8 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(615.846 + 613.308 + 622.776 + 637.09 + 672.914) / 5 = $632.3868 Mil.
Total Assets at the begining of last year (Dec21) was $615.8 Mil.
Long-Term Debt & Capital Lease Obligation was $13.0 Mil.
Total Current Assets was $322.8 Mil.
Total Current Liabilities was $110.6 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

SPS Commerce's current Net Income (TTM) was 65.8. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

SPS Commerce's current Cash Flow from Operations (TTM) was 132.3. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=65.824/672.914
=0.09781934

ROA (Last Year)=Net Income/Total Assets (Dec21)
=55.134/615.846
=0.08952563

SPS Commerce's return on assets of this year was 0.09781934. SPS Commerce's return on assets of last year was 0.08952563. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

SPS Commerce's current Net Income (TTM) was 65.8. SPS Commerce's current Cash Flow from Operations (TTM) was 132.3. ==> 132.3 > 65.8 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=9.569/743.3262
=0.01287322

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=13.009/632.3868
=0.02057127

SPS Commerce's gearing of this year was 0.01287322. SPS Commerce's gearing of last year was 0.02057127. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=401.441/130.669
=3.07219769

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=322.814/110.642
=2.91764429

SPS Commerce's current ratio of this year was 3.07219769. SPS Commerce's current ratio of last year was 2.91764429. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

SPS Commerce's number of shares in issue this year was 37.649. SPS Commerce's number of shares in issue last year was 36.986. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=354.841/536.91
=0.66089475

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=297.81/450.875
=0.66051566

SPS Commerce's gross margin of this year was 0.66089475. SPS Commerce's gross margin of last year was 0.66051566. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=536.91/672.914
=0.79788799

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=450.875/615.846
=0.73212297

SPS Commerce's asset turnover of this year was 0.79788799. SPS Commerce's asset turnover of last year was 0.73212297. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

SPS Commerce has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

SPS Commerce  (NAS:SPSC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


SPS Commerce Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of SPS Commerce's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


SPS Commerce (SPS Commerce) Business Description

Traded in Other Exchanges
Address
333 South Seventh Street, Suite 1000, Minneapolis, MN, USA, 55402
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.
Executives
Marty M Reaume director TWILIO INC, 375 BEALE STREET SUITE 300, SAN FRANCISCO CA 94105
Archie C. Black director, officer: President & CEO 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
Philip Soran director 12982 VALLEY VIEW RD, EDEN PRAIRIE MN 55344
Kimberly K. Nelson officer: EVP & CFO 2800 MOUNT RIDGE ROAD, ROSEVILLE MN 55113
Sven Wehrwein director
Chadwick Collins director, officer: Chief Executive Officer 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
James J. Frome officer: EVP & Chief Strategy Officer 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
James Burr Ramsey director C/O NETSUITE INC, 2955 CAMPUS DRIVE SUITE 100, SAN MATEO CA 94403
Anne Sempowski Ward director C/O VANDA PHARMACEUTICALS INC., 2200 PENNSYLVANIA AVENUE, SUITE 300E, WASHINGTON DC 20037
Martin J Leestma director 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
Michael A Smerklo director C/O SERVICESOURCE INTERNATIONAL, INC., 634 SECOND STREET, SAN FRANCISCO CA 94107
Michael J Mcconnell director P.O. BOX 6280, NEWPORT BEACH CA 92658
Melvin L Keating director 18 DRIFTWOOD DRIVE, LIVINGSTON NJ 07039
Tami Reller director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Spencer George H. Iii director, 10 percent owner C/O SEYEN CAPITAL, 150 NORTH WACKER DR., SUITE 660, CHICAGO IL 60606

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