SPS CommerceSPSC +0.25%79 FCF Margin % is 25.24% as of Mar. 2026, which is 23% above its 10-year median of 20.56. GuruFocus rates SPSC with a GF Score™ of 79/100 and a GF Value™ of $241.57 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,814 Software companies, SPS Commerce ranks better than 88.56% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. SPS Commerce's Free Cash Flow for the
three
months ended in Mar. 2026 was $48.5 Mil. SPS Commerce's Revenue for the
three
months ended in Mar. 2026 was $192.1 Mil. Therefore, SPS Commerce's FCF Margin % for the quarter that ended in Mar. 2026 was 25.24%.
The historical rank and industry rank for SPS Commerce's FCF Margin % or its related term are showing as below:
SPSC'
s FCF Margin % Range Over the Past 10 Years
Min: 5.57 Med: 20.56 Max: 24.22
Current: 21.9
During the past 13 years, the highest FCF Margin % of SPS Commerce was 24.22%. The lowest was 5.57%. And the median was 20.56%.
SPSC's FCF Margin % is ranked better than 88.56% of 2814
companies
in the Software industry
Industry Median: 2.41
vs SPSC: 21.90
SPS Commerce FCF Margin % Related Terms
SPS Commerce FCF Margin % Historical Data
* Premium members only.
The historical data trend for SPS Commerce's FCF Margin % 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 FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, SPS Commerce's FCF Margin % distribution charts can be found below:
* The bar in red indicates where SPS Commerce's FCF Margin % falls into.
* 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.
SPS Commerce (SPSC) has a FCF Margin % of 25.24% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on SPS Commerce and its competitors. This is 23% above median its historical median of 20.56. Over the past decade, SPS Commerce's FCF Margin % has ranged from 5.57 to 24.22. According to the industry distribution chart, SPS Commerce ranks #322 out of 2814 companies in the Software industry, placing it in the top 11.4%.
Is SPS Commerce's FCF Margin % too high?
SPS Commerce's current FCF Margin % of 25.24% is 23% above median its 10-year median of 20.56. Over the past 10 years, this metric has ranged from a low of 5.57 to a high of 24.22. The Software industry median FCF Margin % is 2.41. SPS Commerce's value of 25.24% is 947.3% above this industry median. Based on the distribution chart, SPS Commerce ranks #322 out of 2814 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SPS Commerce has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SPS Commerce's FCF Margin % compare to PDFS and PLUS?
According to the Software industry distribution chart, SPS Commerce ranks #322 out of 2814 companies for FCF Margin %. This places SPS Commerce in the top 11% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.41. SPS Commerce's value of 25.24% is 947.3% above this benchmark. Historically, SPS Commerce's own FCF Margin % has ranged from 5.57 to 24.22 over the past decade. While the company's 10-year median is 20.56 vs. the industry median of 2.41, 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current FCF Margin % of 25.24% is 947.3% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on SPS Commerce and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current FCF Margin % is 25.24%, which is 23% above median its own 10-year median of 20.56. 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 $241.57, compared to a current price of $55.73 — trading 76.9% below its estimated fair value. The current FCF Margin % is 25.24%, which is 23% above median its 10-year median of 20.56 and 947.3% above the Software industry median of 2.41. SPS Commerce's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For SPS Commerce (SPSC), the current FCF Margin % is 25.24% as of Mar. 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 $55.73 is trading 76.9% below its estimated GF Value™ of $241.57.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for SPSC:
FCF Margin %: 25.24% (23% above median its 10-year median of 20.56)
GF Value™: $241.57 vs. price of $55.73 (76.9% below fair value)
Industry Position: 947.3% above the Software median (#322 of 2814)
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.
79GF Score
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