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SPS CommerceMIL:1SPSC 67 ROE % is 2.89% as of Jun. 2026, which is 71% below its 10-year median of 10.07. 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 2,690 Software companies, SPS Commerce ranks better than 57.32% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SPS Commerce's annualized net income for the quarter that ended in Jun. 2026 was €23.8 Mil. SPS Commerce's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was €823.4 Mil. Therefore, SPS Commerce's annualized ROE % for the quarter that ended in Jun. 2026 was 2.89%.
The historical rank and industry rank for SPS Commerce's ROE % or its related term are showing as below:
MIL:1SPSC'
s ROE % Range Over the Past 10 Years
Min: 0.13 Med: 10.07 Max: 11.76
Current: 8.15
During the past 13 years, SPS Commerce's highest ROE % was 11.76%. The lowest was 0.13%. And the median was 10.07%.
MIL:1SPSC's ROE % is ranked better than 57.32% of 2690
companies
in the Software industry
Industry Median: 4.85
vs MIL:1SPSC: 8.15
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
SPS Commerce ROE % Related Terms
SPS Commerce ROE % Historical Data
* Premium members only.
The historical data trend for SPS Commerce's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, SPS Commerce's ROE % distribution charts can be found below:
* The bar in red indicates where SPS Commerce's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
SPS Commerce (MIL:1SPSC) has a ROE % of 2.89% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SPS Commerce and its competitors. This is 71% below median its historical median of 10.07. Over the past decade, SPS Commerce's ROE % has ranged from 0.13 to 11.76. According to the industry distribution chart, SPS Commerce ranks #1148 out of 2690 companies in the Software industry, placing it in the top 42.7%.
Is SPS Commerce's ROE % too high?
SPS Commerce's current ROE % of 2.89% is 71% below median its 10-year median of 10.07. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 11.76. The Software industry median ROE % is 4.85. SPS Commerce's value of 2.89% is 40.4% below this industry median. Based on the distribution chart, SPS Commerce ranks #1148 out of 2690 companies in the Software industry, which is above the industry midpoint. 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 ROE % compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #1148 out of 2690 companies for ROE %. This puts SPS Commerce in the upper half of its industry. The industry median ROE % is 4.85. SPS Commerce's value of 2.89% is 40.4% below this benchmark. Historically, SPS Commerce's own ROE % has ranged from 0.13 to 11.76 over the past decade. While the company's 10-year median is 10.07 vs. the industry median of 4.85, SPS Commerce has consistently been below 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 ROE % for a Software company?
The median ROE % among Software companies is 4.85, based on 2,690 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current ROE % of 2.89% is 40.4% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SPS Commerce and its competitors. For the Software industry, the median ROE % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current ROE % is 2.89%, which is 71% below median its own 10-year median of 10.07. 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 ROE % is 2.89%, which is 71% below median its 10-year median of 10.07 and 40.4% below the Software industry median of 4.85. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For SPS Commerce (MIL:1SPSC), the current ROE % is 2.89% 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:
ROE %: 2.89% (71% below median its 10-year median of 10.07)
GF Value™: €151.92 vs. price of €67.64 (55.5% below fair value)
Industry Position: 40.4% below the Software median (#1148 of 2690)
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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