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SPS CommerceMIL:1SPSC 67 Return-on-Tangible-Equity is 12.45% as of Jun. 2026, which is 32% below its 10-year median of 18.26. GuruFocus rates MIL:1SPSC with a GF Score™ of 67/100 and a GF Value™ of €151.92 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,485 Software companies, SPS Commerce ranks better than 78.83% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. SPS Commerce's annualized net income for the quarter that ended in Jun. 2026 was €23.8 Mil. SPS Commerce's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €191.5 Mil. Therefore, SPS Commerce's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 12.45%.
The historical rank and industry rank for SPS Commerce's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1SPSC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.18 Med: 18.26 Max: 38.31
Current: 38.31
During the past 13 years, SPS Commerce's highest Return-on-Tangible-Equity was 38.31%. The lowest was 0.18%. And the median was 18.26%.
MIL:1SPSC's Return-on-Tangible-Equity is ranked better than 78.83% of 2485
companies
in the Software industry
Industry Median: 9.79
vs MIL:1SPSC: 38.31
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
SPS Commerce Return-on-Tangible-Equity Related Terms
SPS Commerce Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SPS Commerce's Return-on-Tangible-Equity 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.
MIL:1SPSC vs PLUS, PDFS, INTA: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, SPS Commerce's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, SPS Commerce's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.45% mean?
SPS Commerce (MIL:1SPSC) has a Return-on-Tangible-Equity of 12.45% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SPS Commerce and its competitors. This is 32% below median its historical median of 18.26. Over the past decade, SPS Commerce's Return-on-Tangible-Equity has ranged from 0.18 to 38.31. According to the industry distribution chart, SPS Commerce ranks #526 out of 2485 companies in the Software industry, placing it in the top 21.2%.
Is SPS Commerce's Return-on-Tangible-Equity too high?
SPS Commerce's current Return-on-Tangible-Equity of 12.45% is 32% below median its 10-year median of 18.26. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 38.31. The Software industry median Return-on-Tangible-Equity is 9.79. SPS Commerce's value of 12.45% is 27.2% above this industry median. Based on the distribution chart, SPS Commerce ranks #526 out of 2485 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 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SPS Commerce's Return-on-Tangible-Equity compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #526 out of 2485 companies for Return-on-Tangible-Equity. This places SPS Commerce in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.79. SPS Commerce's value of 12.45% is 27.2% above this benchmark. Historically, SPS Commerce's own Return-on-Tangible-Equity has ranged from 0.18 to 38.31 over the past decade. While the company's 10-year median is 18.26 vs. the industry median of 9.79, 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 Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 9.79, based on 2,485 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current Return-on-Tangible-Equity of 12.45% is 27.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SPS Commerce and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current Return-on-Tangible-Equity is 12.45%, which is 32% below median its own 10-year median of 18.26. 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 (MIL:1SPSC) is currently considered Significantly Undervalued. The stock's GF Value™ is €151.92, compared to a current price of €67.64 — trading 55.5% below its estimated fair value. The current Return-on-Tangible-Equity is 12.45%, which is 32% below median its 10-year median of 18.26 and 27.2% above the Software industry median of 9.79. SPS Commerce's overall GF Score™ is 67/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For SPS Commerce (MIL:1SPSC), the current Return-on-Tangible-Equity is 12.45% 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 (MIL:1SPSC) Overvalued in 2026?
Based on GuruFocus' analysis, SPS Commerce stock appears to be undervalued.
The current stock price of €67.64 is trading 55.5% below its estimated GF Value™ of €151.92.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for MIL:1SPSC:
Return-on-Tangible-Equity: 12.45% (32% below median its 10-year median of 18.26)
GF Value™: €151.92 vs. price of €67.64 (55.5% below fair value)
Industry Position: 27.2% above the Software median (#526 of 2485)
No single metric tells the full story. See the MIL:1SPSC 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.
67GF Score
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