SHOPIFY INC - CLASS A (SHOP) Stock Fundamental Analysis
NASDAQ:SHOP • CA82509L1076
121.64 USD
+8.1 (+7.13%)
At close: Feb 18, 2026
121.813 USD
+0.17 (+0.14%)
After Hours: 2/18/2026, 4:40:01 PM
Taking everything into account, SHOP scores 7 out of 10 in our fundamental rating. SHOP was compared to 87 industry peers in the IT Services industry. SHOP has an excellent financial health rating, but there are some minor concerns on its profitability. SHOP is valued quite expensive, but it does show an excellent growth. These ratings would make SHOP suitable for growth 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 has a Return On Assets of 8.10%. This is amongst the best in the industry. SHOP outperforms 80.46% of its industry peers.
- SHOP's Return On Equity of 9.14% is fine compared to the rest of the industry. SHOP outperforms 65.52% of its industry peers.
- SHOP's Return On Invested Capital of 9.24% is fine compared to the rest of the industry. SHOP outperforms 74.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 9.14% | ||
| ROIC | 9.24% |
ROA(3y)7.93%
ROA(5y)2.69%
ROE(3y)9.36%
ROE(5y)2.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SHOP has a better Profit Margin (10.65%) than 79.31% of its industry peers.
- SHOP's Profit Margin has been stable in the last couple of years.
- SHOP has a better Operating Margin (12.82%) than 75.86% of its industry peers.
- SHOP's Operating Margin has improved in the last couple of years.
- SHOP has a Gross Margin of 48.07%. This is in the better half of the industry: SHOP outperforms 70.11% of its industry peers.
- SHOP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 10.65% | ||
| GM | 48.07% |
OM growth 3YN/A
OM growth 5Y20.39%
PM growth 3YN/A
PM growth 5Y-0.47%
GM growth 3Y-0.76%
GM growth 5Y-1.79%
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.
- SHOP has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SHOP has more shares outstanding
- 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.
2.2 Solvency
- An Altman-Z score of 53.57 indicates that SHOP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 53.57, SHOP belongs to the top of the industry, outperforming 98.85% 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 | ||
| Altman-Z | 53.57 |
ROIC/WACC1.05
WACC8.79%
2.3 Liquidity
- A Current Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 5.96, SHOP belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
- A Quick Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 5.96, SHOP belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 |
3. Growth
3.1 Past
- SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.33%, which is quite good.
- The Earnings Per Share has been growing by 29.16% 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 30.14%.
- SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.58% yearly.
EPS 1Y (TTM)18.33%
EPS 3Y228.66%
EPS 5Y29.16%
EPS Q2Q%23.08%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
3.2 Future
- SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.22% yearly.
- Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 22.88% on average per year.
EPS Next Y33.3%
EPS Next 2Y30.57%
EPS Next 3Y26.08%
EPS Next 5Y26.22%
Revenue Next Year27%
Revenue Next 2Y25.42%
Revenue Next 3Y24.58%
Revenue Next 5Y22.88%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 85.66, the valuation of SHOP can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as SHOP.
- SHOP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.16.
- A Price/Forward Earnings ratio of 64.26 indicates a quite expensive valuation of SHOP.
- 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 (28.10), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.66 | ||
| Fwd PE | 64.26 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA ratio is in line with the industry average.
- SHOP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.9 | ||
| EV/EBITDA | 91.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SHOP has a very decent profitability rating, which may justify a higher PE ratio.
- SHOP's earnings are expected to grow with 26.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)2.94
EPS Next 2Y30.57%
EPS Next 3Y26.08%
5. Dividend
5.1 Amount
- No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
121.64
+8.1 (+7.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-06 2026-05-06/amc
Inst Owners74.8%
Inst Owner Change-2.17%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap158.36B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts76
Price Target181.01 (48.81%)
Short Float %0.71%
Short Ratio0.83
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)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-7.07%
Max EPS beat(2)-0.68%
EPS beat(4)1
Avg EPS beat(4)1.37%
Min EPS beat(4)-7.07%
Max EPS beat(4)18.96%
EPS beat(8)4
Avg EPS beat(8)7.7%
EPS beat(12)8
Avg EPS beat(12)36.56%
EPS beat(16)10
Avg EPS beat(16)51.73%
Revenue beat(2)2
Avg Revenue beat(2)0.68%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1.17%
Revenue beat(4)3
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)3.12%
Revenue beat(8)5
Avg Revenue beat(8)0.43%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)0.28%
PT rev (1m)1.79%
PT rev (3m)9.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)1.24%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.66 | ||
| Fwd PE | 64.26 | ||
| P/S | 13.7 | ||
| P/FCF | 78.9 | ||
| P/OCF | 77.89 | ||
| P/B | 11.75 | ||
| P/tB | 12.23 | ||
| EV/EBITDA | 91.14 |
EPS(TTM)1.42
EY1.17%
EPS(NY)1.89
Fwd EY1.56%
FCF(TTM)1.54
FCFY1.27%
OCF(TTM)1.56
OCFY1.28%
SpS8.88
BVpS10.35
TBVpS9.95
PEG (NY)2.57
PEG (5Y)2.94
Graham Number18.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 9.14% | ||
| ROCE | 10.73% | ||
| ROIC | 9.24% | ||
| ROICexc | 15.9% | ||
| ROICexgc | 17.01% | ||
| OM | 12.82% | ||
| PM (TTM) | 10.65% | ||
| GM | 48.07% | ||
| FCFM | 17.37% |
ROA(3y)7.93%
ROA(5y)2.69%
ROE(3y)9.36%
ROE(5y)2.45%
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 3YN/A
ROICexgc growth 5Y-8.24%
ROICexc growth 3YN/A
ROICexc growth 5Y3.1%
OM growth 3YN/A
OM growth 5Y20.39%
PM growth 3YN/A
PM growth 5Y-0.47%
GM growth 3Y-0.76%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.87% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | 1481 | ||
| Cash Conversion | 134.46% | ||
| Profit Quality | 163.04% | ||
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 | ||
| Altman-Z | 53.57 |
F-Score6
WACC8.79%
ROIC/WACC1.05
Cap/Depr(3y)64.12%
Cap/Depr(5y)64.84%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.6%
Profit Quality(3y)307.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.33%
EPS 3Y228.66%
EPS 5Y29.16%
EPS Q2Q%23.08%
EPS Next Y33.3%
EPS Next 2Y30.57%
EPS Next 3Y26.08%
EPS Next 5Y26.22%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
Revenue Next Year27%
Revenue Next 2Y25.42%
Revenue Next 3Y24.58%
Revenue Next 5Y22.88%
EBIT growth 1Y37.77%
EBIT growth 3YN/A
EBIT growth 5Y58.41%
EBIT Next Year37.73%
EBIT Next 3Y38.39%
EBIT Next 5Y37.09%
FCF growth 1Y25.67%
FCF growth 3YN/A
FCF growth 5Y39.28%
OCF growth 1Y25.8%
OCF growth 3YN/A
OCF growth 5Y36.76%
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.