158.275 USD
+0.77 (+0.49%)
Taking everything into account, SHOP scores 7 out of 10 in our fundamental rating. SHOP was compared to 88 industry peers in the IT Services industry. While SHOP has a great health rating, its profitability is only average at the moment. SHOP shows excellent growth, but is valued quite expensive already. These ratings could make SHOP a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year SHOP was profitable.
- SHOP had a positive operating cash flow in the past year.
- Of the past 5 years SHOP 4 years were profitable.
- Of the past 5 years SHOP 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SHOP (11.84%) is better than 89.77% of its industry peers.
- With a decent Return On Equity value of 14.24%, SHOP is doing good in the industry, outperforming 76.14% of the companies in the same industry.
- SHOP's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. SHOP outperforms 71.59% of its industry peers.
| 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
- SHOP has a Profit Margin of 16.65%. This is amongst the best in the industry. SHOP outperforms 93.18% of its industry peers.
- In the last couple of years the Profit Margin of SHOP has declined.
- Looking at the Operating Margin, with a value of 12.29%, SHOP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- SHOP's Operating Margin has improved in the last couple of years.
- SHOP's Gross Margin of 48.75% is fine compared to the rest of the industry. SHOP outperforms 69.32% of its industry peers.
- 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
- SHOP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for SHOP has been increased compared to 1 year ago.
- SHOP has more shares outstanding than it did 5 years ago.
- SHOP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 50.38 indicates that SHOP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SHOP (50.38) is better than 98.86% of its industry peers.
- There is no outstanding debt for SHOP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 50.38 |
ROIC/WACC1.04
WACC7.99%
2.3 Liquidity
- A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
- SHOP's Current ratio of 3.93 is amongst the best of the industry. SHOP outperforms 85.23% 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.
- Looking at the Quick ratio, with a value of 3.93, SHOP belongs to the top of the industry, outperforming 85.23% 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.
- Measured over the past years, SHOP shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.21% on average per year.
- Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
- The Revenue has been growing by 41.27% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, SHOP will show a very strong growth in Earnings Per Share. The EPS will grow by 24.01% on average per year.
- SHOP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.85% yearly.
EPS Next Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y24.01%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
Revenue Next 5Y23.85%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- SHOP is valuated quite expensively with a Price/Earnings ratio of 119.00.
- SHOP's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, SHOP is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 84.65, the valuation of SHOP can be described as expensive.
- SHOP's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (24.12), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119 | ||
| Fwd PE | 84.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SHOP is valued a bit more expensive than the industry average as 60.23% of the companies are valued more cheaply.
- SHOP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SHOP is more expensive than 60.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 108.28 | ||
| EV/EBITDA | 145.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of SHOP may justify a higher PE ratio.
- SHOP's earnings are expected to grow with 25.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.14
PEG (5Y)1.7
EPS Next 2Y24.82%
EPS Next 3Y25.68%
5. Dividend
5.1 Amount
- No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:SHOP (1/15/2026, 3:14:08 PM)
158.275
+0.77 (+0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-09 2026-02-09/amc
Inst Owners74.8%
Inst Owner Change0.25%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap206.05B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target177.83 (12.36%)
Short Float %1.45%
Short Ratio2.19
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)0.94%
PT rev (3m)9.49%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119 | ||
| Fwd PE | 84.65 | ||
| P/S | 19.26 | ||
| P/FCF | 108.28 | ||
| P/OCF | 107.15 | ||
| P/B | 16.47 | ||
| P/tB | 17.19 | ||
| EV/EBITDA | 145.28 |
EPS(TTM)1.33
EY0.84%
EPS(NY)1.87
Fwd EY1.18%
FCF(TTM)1.46
FCFY0.92%
OCF(TTM)1.48
OCFY0.93%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.14
PEG (5Y)1.7
Graham Number16.96
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 | 50.38 |
F-Score6
WACC7.99%
ROIC/WACC1.04
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 Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y24.01%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
Revenue Next 5Y23.85%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year35.38%
EBIT Next 3Y33.67%
EBIT Next 5Y36.72%
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 FAQ
What is the ChartMill fundamental rating of SHOPIFY INC - CLASS A (SHOP) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SHOP.
What is the valuation status for SHOP stock?
ChartMill assigns a valuation rating of 2 / 10 to SHOPIFY INC - CLASS A (SHOP). This can be considered as Overvalued.
What is the profitability of SHOP stock?
SHOPIFY INC - CLASS A (SHOP) has a profitability rating of 6 / 10.
How financially healthy is SHOPIFY INC - CLASS A?
The financial health rating of SHOPIFY INC - CLASS A (SHOP) is 9 / 10.