Is SPS COMMERCE INC (SPSC) Halal?

NASDAQ Technology United States $2.1B
✓ HALAL
Confidence: 95/100
SPS COMMERCE INC (SPSC) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, SPS COMMERCE INC comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
6.3%
/ 30%
2.8%
/ 30%
0.74%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
6.3%
/ 33%
2.8%
/ 33%
0.74%
/ 5%
✓ HALAL
MSCI 0.6%
/ 33%
12.9%
/ 33%
5.8%
/ 33%
0.74%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
6.3%
/ 33%
2.8%
/ 33%
0.74%
/ 5%
✓ HALAL
FTSE 0.6%
/ 33%
12.9%
/ 33%
5.8%
/ 50%
0.74%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
22.2
Forward: 10.7
EPS
$2.46
P/B Ratio
2.1
EV/EBITDA
10.7
EV: $1.9B
Revenue
$752M
Growth: 12.7%
Beta
0.6
Low volatility
Current Ratio
2.2

Profitability

Gross Margin 69.2%
Operating Margin 18.0%
Net Margin 12.4%
Return on Equity (ROE) 10.2%
Return on Assets (ROA) 6.7%

Cash Flow & Balance Sheet

Operating Cash Flow$179M
Free Cash Flow$152M
Total Debt$7M
Debt-to-Equity0.7
Current Ratio2.2
Total Assets$1.2B

Price & Trading

Last Close$55.10
50-Day MA$69.11
200-Day MA$97.95
Avg Volume748K
Beta0.6
52-Week Range
$52.56
$153.16

About SPS COMMERCE INC (SPSC)

CEO
Mr. Chadwick Collins
Employees
2,948
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$2.1B
Currency
USD

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. It offers solutions through SPS Commerce, a cloud-based platform that connects retailers, brands, distributors, manufacturers, and logistics providers, handling the complexity of modern commerce operations. The company 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, it 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 relationship management 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.

Purification Calculator

As a halal stock with 0.74% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is SPS COMMERCE INC (SPSC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SPS COMMERCE INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SPS COMMERCE INC's debt ratio?

SPS COMMERCE INC's debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.6%.

Does SPS COMMERCE INC require dividend purification?

Yes, SPS COMMERCE INC has an impermissible income ratio of 0.74%, which means 0.74% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are SPS COMMERCE INC's key financial metrics?

SPS COMMERCE INC has a market capitalization of $2.1B, trailing P/E ratio of 22.2, and revenue of $752M. The company maintains a gross margin of 69.2% and a net margin of 12.4%. Return on equity stands at 10.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.