SHOPIFY INC - CLASS A (SHOP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHOP - CA82509L1076 - Common Stock
233.8 CAD
+3.9 (+1.7%)
We assign a fundamental rating of 7 out of 10 to SHOP. SHOP was compared to 11 industry peers in the IT Services industry. SHOP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SHOP is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make SHOP a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
SHOP had positive earnings in the past year.
SHOP had a positive operating cash flow in the past year.
SHOP had positive earnings in 4 of the past 5 years.
SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHOP's Return On Assets of 11.84% is amongst the best of the industry. SHOP outperforms 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 14.24%, SHOP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.30%, SHOP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.84% | ||
| ROE | 14.24% | ||
| ROIC | 8.3% |
ROA(3y)-5.5%
ROA(5y)1.89%
ROE(3y)-7.69%
ROE(5y)1.62%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 16.65%, SHOP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SHOP's Profit Margin has declined in the last couple of years.
SHOP's Operating Margin of 12.29% is amongst the best of the industry. SHOP outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of SHOP has grown nicely.
With an excellent Gross Margin value of 48.75%, SHOP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of SHOP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.29% | ||
| PM (TTM) | 16.65% | ||
| GM | 48.75% |
OM growth 3Y23.17%
OM growth 5YN/A
PM growth 3Y-28.88%
PM growth 5YN/A
GM growth 3Y-2.18%
GM growth 5Y-1.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHOP is still creating some value.
Compared to 1 year ago, SHOP has more shares outstanding
Compared to 5 years ago, SHOP has more shares outstanding
Compared to 1 year ago, SHOP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 54.09 indicates that SHOP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 54.09, SHOP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SHOP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 54.09 |
ROIC/WACC1.02
WACC8.12%
2.3 Liquidity
A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP has a Current ratio of 3.93. This is amongst the best in the industry. SHOP outperforms 91.67% of its industry peers.
SHOP has a Quick Ratio of 3.93. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.93, SHOP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.93 |
3. Growth
3.1 Past
SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.65%, which is quite good.
The Earnings Per Share has been growing by 70.21% on average over the past years. This is a very strong growth
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.27% yearly.
EPS 1Y (TTM)15.65%
EPS 3Y23.18%
EPS 5Y70.21%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
3.2 Future
SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.54% yearly.
The Revenue is expected to grow by 23.59% on average over the next years. This is a very strong growth
EPS Next Y23%
EPS Next 2Y24.76%
EPS Next 3Y24.57%
EPS Next 5Y21.54%
Revenue Next Year30.41%
Revenue Next 2Y26.93%
Revenue Next 3Y24.96%
Revenue Next 5Y23.59%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 127.76, the valuation of SHOP can be described as expensive.
Based on the Price/Earnings ratio, SHOP is valued a bit cheaper than 66.67% of the companies in the same industry.
SHOP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.39.
The Price/Forward Earnings ratio is 90.74, which means the current valuation is very expensive for SHOP.
75.00% of the companies in the same industry are more expensive than SHOP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (23.84), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.76 | ||
| Fwd PE | 90.74 |
4.2 Price Multiples
SHOP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHOP indicates a somewhat cheap valuation: SHOP is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.95 | ||
| EV/EBITDA | 156.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHOP does not grow enough to justify the current Price/Earnings ratio.
SHOP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SHOP's earnings are expected to grow with 24.57% in the coming years.
PEG (NY)5.56
PEG (5Y)1.82
EPS Next 2Y24.76%
EPS Next 3Y24.57%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:SHOP (12/19/2025, 7:00:00 PM)
233.8
+3.9 (+1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.76%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap304.37B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target246.03 (5.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.14%
Min EPS beat(2)-0.68%
Max EPS beat(2)18.96%
EPS beat(4)1
Avg EPS beat(4)0.31%
Min EPS beat(4)-11.32%
Max EPS beat(4)18.96%
EPS beat(8)5
Avg EPS beat(8)9.45%
EPS beat(12)9
Avg EPS beat(12)90.51%
EPS beat(16)11
Avg EPS beat(16)52.5%
Revenue beat(2)2
Avg Revenue beat(2)2.15%
Min Revenue beat(2)1.17%
Max Revenue beat(2)3.12%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)3.12%
Revenue beat(8)5
Avg Revenue beat(8)0.56%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)11
Avg Revenue beat(16)0.33%
PT rev (1m)5.47%
PT rev (3m)10.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.76 | ||
| Fwd PE | 90.74 | ||
| P/S | 20.63 | ||
| P/FCF | 115.95 | ||
| P/OCF | 114.75 | ||
| P/B | 17.64 | ||
| P/tB | 18.41 | ||
| EV/EBITDA | 156.87 |
EPS(TTM)1.83
EY0.78%
EPS(NY)2.58
Fwd EY1.1%
FCF(TTM)2.02
FCFY0.86%
OCF(TTM)2.04
OCFY0.87%
SpS11.33
BVpS13.26
TBVpS12.7
PEG (NY)5.56
PEG (5Y)1.82
Graham Number23.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.84% | ||
| ROE | 14.24% | ||
| ROCE | 10.25% | ||
| ROIC | 8.3% | ||
| ROICexc | 16.44% | ||
| ROICexgc | 17.89% | ||
| OM | 12.29% | ||
| PM (TTM) | 16.65% | ||
| GM | 48.75% | ||
| FCFM | 17.79% |
ROA(3y)-5.5%
ROA(5y)1.89%
ROE(3y)-7.69%
ROE(5y)1.62%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y37.8%
ROICexgc growth 5YN/A
ROICexc growth 3Y39.24%
ROICexc growth 5YN/A
OM growth 3Y23.17%
OM growth 5YN/A
PM growth 3Y-28.88%
PM growth 5YN/A
GM growth 3Y-2.18%
GM growth 5Y-1.69%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.5% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.76% | ||
| Profit Quality | 106.85% | ||
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.93 | ||
| Altman-Z | 54.09 |
F-Score6
WACC8.12%
ROIC/WACC1.02
Cap/Depr(3y)54.58%
Cap/Depr(5y)60.06%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.65%
EPS 3Y23.18%
EPS 5Y70.21%
EPS Q2Q%-2.86%
EPS Next Y23%
EPS Next 2Y24.76%
EPS Next 3Y24.57%
EPS Next 5Y21.54%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year30.41%
Revenue Next 2Y26.93%
Revenue Next 3Y24.96%
Revenue Next 5Y23.59%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year35.58%
EBIT Next 3Y32.76%
EBIT Next 5Y38.08%
FCF growth 1Y169.26%
FCF growth 3Y48.78%
FCF growth 5Y186.89%
OCF growth 1Y155.93%
OCF growth 3Y44.49%
OCF growth 5Y87.03%
SHOPIFY INC - CLASS A / SHOP.CA FAQ
What is the ChartMill fundamental rating of SHOPIFY INC - CLASS A (SHOP.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SHOP.CA.
What is the valuation status of SHOPIFY INC - CLASS A (SHOP.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to SHOPIFY INC - CLASS A (SHOP.CA). This can be considered as Fairly Valued.
What is the profitability of SHOP stock?
SHOPIFY INC - CLASS A (SHOP.CA) has a profitability rating of 7 / 10.
What is the financial health of SHOPIFY INC - CLASS A (SHOP.CA) stock?
The financial health rating of SHOPIFY INC - CLASS A (SHOP.CA) is 9 / 10.
What is the earnings growth outlook for SHOPIFY INC - CLASS A?
The Earnings per Share (EPS) of SHOPIFY INC - CLASS A (SHOP.CA) is expected to grow by 23% in the next year.