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Upturn AI SWOT - About
SPSC 
SPS Commerce Inc (SPSC)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
06/27/2025: SPSC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
12 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Year Target Price $178.41
Year Target Price $178.41
| 7 | Strong Buy |
| 2 | Buy |
| 3 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.74% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.06B USD | Price to earnings Ratio 62.21 | 1Y Target Price 178.23 |
Price to earnings Ratio 62.21 | 1Y Target Price 178.23 | ||
Volume (30-day avg) - | Beta 0.73 | 52 Weeks Range 120.08 - 218.61 | Updated Date 06/29/2025 |
52 Weeks Range 120.08 - 218.61 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.14 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 12.13% | Operating Margin (TTM) 14.3% |
Management Effectiveness
Return on Assets (TTM) 6.38% | Return on Equity (TTM) 10.13% |
Valuation
Trailing PE 62.21 | Forward PE 67.11 | Enterprise Value 4973270333 | Price to Sales(TTM) 7.55 |
Enterprise Value 4973270333 | Price to Sales(TTM) 7.55 | ||
Enterprise Value to Revenue 7.43 | Enterprise Value to EBITDA 34.02 | Shares Outstanding 37977400 | Shares Floating 37602541 |
Shares Outstanding 37977400 | Shares Floating 37602541 | ||
Percent Insiders 0.95 | Percent Institutions 100.8 |
Analyst Ratings
Rating 4.33 | Target Price 178.41 | Buy 2 | Strong Buy 7 |
Buy 2 | Strong Buy 7 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
SPS Commerce Inc
Company Overview
History and Background
SPS Commerce was founded in 1987 and is headquartered in Minneapolis, Minnesota. It provides cloud-based supply chain management software, focusing on retail supply chains. It has grown through organic expansion and strategic acquisitions, becoming a leading provider in its sector.
Core Business Areas
- SPS Commerce Fulfillment: Provides cloud-based solutions that automate and optimize order management, inventory visibility, and shipping processes, allowing businesses to efficiently manage their supply chains and meet the demands of retailers and consumers.
- SPS Commerce Analytics: Offers robust data analytics and reporting tools that provide insights into supply chain performance, enabling businesses to identify trends, optimize operations, and make data-driven decisions.
- SPS Commerce Assortment: Helps suppliers effectively manage their product assortment and pricing strategies, ensuring that they align with retailer requirements and maximize sales opportunities.
- SPS Commerce Community: Facilitates seamless communication and collaboration between retailers, suppliers, and other trading partners, streamlining transactions and improving overall supply chain efficiency.
Leadership and Structure
The leadership team includes Archie Black (CEO), Chad Collins (CFO), and James Frome (President). The company has a functional organizational structure with departments focusing on sales, marketing, product development, and customer support.
Top Products and Market Share
Key Offerings
- SPS Commerce Fulfillment: Flagship product that automates order management and supply chain processes. SPS Commerce estimates a significant portion of all US retail transactions go through their platform. Competitors include TrueCommerce, DiCentral, and OpenText.
- SPS Commerce Analytics: Provides data analytics and reporting tools for supply chain performance. This helps businesses identify trends, optimize operations, and make data-driven decisions. Competitors include Blue Yonder, Manhattan Associates, and Oracle.
- SPS Commerce Assortment: Assortment helps suppliers effectively manage their product assortment and pricing strategies, ensuring that they align with retailer requirements and maximize sales opportunities. Competitors include NielsenIQ, IRI, and Profitero.
Market Dynamics
Industry Overview
The supply chain management software market is growing due to increasing complexity in retail and e-commerce. Businesses need automated solutions to manage orders, inventory, and logistics effectively.
Positioning
SPS Commerce is positioned as a leading provider of cloud-based supply chain management solutions for the retail industry. They have a strong reputation for reliability and customer service.
Total Addressable Market (TAM)
The total addressable market is estimated to be in the billions of dollars, driven by the increasing complexity of retail supply chains. SPS Commerce is well-positioned to capture a significant share of this market through its comprehensive suite of solutions and strong customer relationships.
Upturn SWOT Analysis
Strengths
- Strong market position in retail supply chain management
- Cloud-based platform offering scalability and flexibility
- Extensive network of retailers and suppliers
- Recurring revenue model with high customer retention rates
- Strong customer support and service
Weaknesses
- Reliance on the retail industry, making it vulnerable to economic downturns
- Premium pricing compared to some competitors
- Potential integration challenges with legacy systems
- Dependence on third-party infrastructure providers
Opportunities
- Expansion into new geographic markets
- Development of new products and services, such as analytics and AI-powered solutions
- Partnerships with complementary technology providers
- Increased adoption of cloud-based solutions in the retail industry
- Leveraging data to improve supply chain efficiency
Threats
- Increased competition from larger technology companies
- Economic downturns impacting the retail industry
- Cybersecurity threats and data breaches
- Changes in retail industry regulations and standards
- Disruptive technologies, such as blockchain and AI, impacting supply chain management
Competitors and Market Share
Key Competitors
- ORCL
- SAP
- NOW
- Manhattan Associates (MANH)
Competitive Landscape
SPS Commerce competes with larger technology companies and niche providers. SPS Commerce's advantages include its focus on the retail industry, its cloud-based platform, and its extensive network of retailers and suppliers. However, larger competitors have more resources and broader product offerings.
Major Acquisitions
Leadtec
- Year: 2021
- Acquisition Price (USD millions): 50
- Strategic Rationale: Expand its presence in the European market and enhance its EDI capabilities.
Growth Trajectory and Initiatives
Historical Growth: SPS Commerce has demonstrated consistent revenue growth over the past several years, driven by increased adoption of its cloud-based solutions and strategic acquisitions.
Future Projections: Analysts project continued revenue growth for SPS Commerce, driven by the increasing complexity of retail supply chains and the demand for automated solutions.
Recent Initiatives: Recent initiatives include expanding into new geographic markets, developing new AI-powered solutions, and strengthening partnerships with complementary technology providers.
Summary
SPS Commerce is a strong player in the retail supply chain management market, benefiting from its cloud-based platform and extensive network. Its consistent revenue growth and strategic acquisitions enhance its market position. However, the company faces competition from larger players and is vulnerable to economic downturns affecting the retail industry. Future growth depends on expansion into new markets, development of innovative solutions, and effective partnerships.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market share data is approximate and subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About SPS Commerce Inc
Exchange NASDAQ | Headquaters Minneapolis, MN, United States | ||
IPO Launch date 2010-04-22 | CEO & Director Mr. Chadwick Collins | ||
Sector Technology | Industry Software - Application | Full time employees 2783 | Website https://www.spscommerce.com |
Full time employees 2783 | Website https://www.spscommerce.com | ||
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. The company offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, manufacturers, distributors, and logistics firm; and manages omnichannel, supply chain, and other business requirements. It also provides Fulfillment, a comprehensive solution designed to streamline supply chain operation that sends and receives order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations; and Analytics product that simplifies managing sell-through data from customers business partners that handle data acquisition, cleansing, normalization, and delivery. In addition, the company offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies through single connection across all sales channels; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management, onboarding programs, and supplier score carding. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
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