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SPS CommerceSPSC +4.37%84 Earnings Yield (Joel Greenblatt) % is 6.43% as of Jun. 2026, which is 363% above its 10-year median of 1.39. GuruFocus rates SPSC with a GF Score™ of 84/100 and a GF Value™ of $181.43 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,911 Software companies, SPS Commerce ranks better than 61.25% on this metric.
SPS Commerce's Enterprise Value for the quarter that ended in Jun. 2026 was $1,902.4 Mil.
SPS Commerce's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $122.3 Mil. SPS Commerce's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 6.43%.
The historical rank and industry rank for SPS Commerce's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
SPSC'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.58 Med: 1.39 Max: 6.61
Current: 4.46
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of SPS Commerce was 6.61%. The lowest was 0.58%. And the median was 1.39%.
SPSC's Earnings Yield (Joel Greenblatt) % is ranked better than 61.25% of 2911
companies
in the Software industry
Industry Median: 2.05
vs SPSC: 4.46
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. SPS Commerce's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 24.99%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
SPS Commerce Earnings Yield (Joel Greenblatt) % Related Terms
SPS Commerce Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for SPS Commerce's Earnings Yield (Joel Greenblatt) % 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.
For the Software - Application subindustry, SPS Commerce's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, SPS Commerce's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
SPS Commerces Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
SPS Commerce's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $122.3 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 6.43% mean?
SPS Commerce (SPSC) has a Earnings Yield (Joel Greenblatt) % of 6.43% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on SPS Commerce and its competitors. This is 363% above median its historical median of 1.39. Over the past decade, SPS Commerce's Earnings Yield (Joel Greenblatt) % has ranged from 0.58 to 6.61. According to the industry distribution chart, SPS Commerce ranks #1128 out of 2911 companies in the Software industry, placing it in the top 38.7%.
Is SPS Commerce's Earnings Yield (Joel Greenblatt) % too high?
SPS Commerce's current Earnings Yield (Joel Greenblatt) % of 6.43% is 363% above median its 10-year median of 1.39. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 6.61. The Software industry median Earnings Yield (Joel Greenblatt) % is 2.05. SPS Commerce's value of 6.43% is 213.7% above this industry median. Based on the distribution chart, SPS Commerce ranks #1128 out of 2911 companies in the Software industry, which is above the industry midpoint. Overall, SPS Commerce has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SPS Commerce's Earnings Yield (Joel Greenblatt) % compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #1128 out of 2911 companies for Earnings Yield (Joel Greenblatt) %. This puts SPS Commerce in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.05. SPS Commerce's value of 6.43% is 213.7% above this benchmark. Historically, SPS Commerce's own Earnings Yield (Joel Greenblatt) % has ranged from 0.58 to 6.61 over the past decade. While the company's 10-year median is 1.39 vs. the industry median of 2.05, SPS Commerce has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 2.05, based on 2,911 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current Earnings Yield (Joel Greenblatt) % of 6.43% is 213.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on SPS Commerce and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 2.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current Earnings Yield (Joel Greenblatt) % is 6.43%, which is 363% above median its own 10-year median of 1.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPS Commerce stock overvalued right now?
Based on GuruFocus' analysis, SPS Commerce (SPSC) is currently considered Significantly Undervalued. The stock's GF Value™ is $181.43, compared to a current price of $80.80 — trading 55.5% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.43%, which is 363% above median its 10-year median of 1.39 and 213.7% above the Software industry median of 2.05. SPS Commerce's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For SPS Commerce (SPSC), the current Earnings Yield (Joel Greenblatt) % is 6.43% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SPS Commerce (SPSC) Overvalued in 2026?
Based on GuruFocus' analysis, SPS Commerce stock appears to be undervalued.
The current stock price of $80.80 is trading 55.5% below its estimated GF Value™ of $181.43.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for SPSC:
Earnings Yield (Joel Greenblatt) %: 6.43% (363% above median its 10-year median of 1.39)
GF Value™: $181.43 vs. price of $80.80 (55.5% below fair value)
Industry Position: 213.7% above the Software median (#1128 of 2911)
No single metric tells the full story. See the SPSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The company has one operating segment Supply Chain Management Solutions, that derives revenues from customers by providing access to cloud-based supply chain management services, primarily under subscription-based service arrangements.
84GF Score
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