SHOPIFY INC - CLASS A (SHOP) Stock Fundamental Analysis
NASDAQ:SHOP • CA82509L1076
112.7 USD
+2.04 (+1.84%)
At close: Feb 13, 2026
112.5 USD
-0.2 (-0.18%)
After Hours: 2/13/2026, 5:29:42 PM
We assign a fundamental rating of 7 out of 10 to SHOP. 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.
- In the past year SHOP had a positive cash flow from operations.
- SHOP had positive earnings in 4 of the past 5 years.
- Of the past 5 years SHOP 4 years had a positive operating cash flow.
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.
- With a decent Return On Invested Capital value of 9.24%, SHOP is doing good in the industry, outperforming 74.71% of the companies in the same industry.
| 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
- Looking at the Profit Margin, with a value of 10.65%, SHOP is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of SHOP has remained more or less at the same level.
- With a decent Operating Margin value of 12.82%, SHOP is doing good in the industry, outperforming 75.86% of the companies in the same industry.
- SHOP's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 48.07%, SHOP is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHOP is creating some value.
- SHOP has more shares outstanding than it did 1 year ago.
- SHOP has more shares outstanding than it did 5 years ago.
- 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 52.26 indicates that SHOP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 52.26, 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 | 52.26 |
ROIC/WACC1.12
WACC8.26%
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 91.95% 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 91.95% 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 16.67%, which is quite good.
- The Earnings Per Share has been growing by 28.80% 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)16.67%
EPS 3Y227.11%
EPS 5Y28.8%
EPS Q2Q%17.95%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
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 26.58% on average per year.
- SHOP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.89% yearly.
EPS Next Y35.2%
EPS Next 2Y31.5%
EPS Next 3Y26.68%
EPS Next 5Y26.58%
Revenue Next Year23.96%
Revenue Next 2Y23.07%
Revenue Next 3Y21.92%
Revenue Next 5Y22.89%
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
- A Price/Earnings ratio of 80.50 indicates a quite expensive valuation of SHOP.
- The rest of the industry has a similar Price/Earnings ratio as SHOP.
- Compared to an average S&P500 Price/Earnings ratio of 27.67, SHOP is valued quite expensively.
- With a Price/Forward Earnings ratio of 59.54, SHOP can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as SHOP.
- When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (27.69), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.5 | ||
| Fwd PE | 59.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SHOP.
- SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.1 | ||
| EV/EBITDA | 88.66 |
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.
- A more expensive valuation may be justified as SHOP's earnings are expected to grow with 26.68% in the coming years.
PEG (NY)2.29
PEG (5Y)2.8
EPS Next 2Y31.5%
EPS Next 3Y26.68%
5. Dividend
5.1 Amount
- SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
112.7
+2.04 (+1.84%)
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-2.48%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap146.72B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts76
Price Target181.01 (60.61%)
Short Float %0.97%
Short Ratio1.59
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)-6.15%
Min EPS beat(2)-11.61%
Max EPS beat(2)-0.68%
EPS beat(4)1
Avg EPS beat(4)0.23%
Min EPS beat(4)-11.61%
Max EPS beat(4)18.96%
EPS beat(8)4
Avg EPS beat(8)7.14%
EPS beat(12)8
Avg EPS beat(12)36.18%
EPS beat(16)10
Avg EPS beat(16)51.44%
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)2.8%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.5 | ||
| Fwd PE | 59.54 | ||
| P/S | 12.7 | ||
| P/FCF | 73.1 | ||
| P/OCF | 72.17 | ||
| P/B | 10.89 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 88.66 |
EPS(TTM)1.4
EY1.24%
EPS(NY)1.89
Fwd EY1.68%
FCF(TTM)1.54
FCFY1.37%
OCF(TTM)1.56
OCFY1.39%
SpS8.88
BVpS10.35
TBVpS9.95
PEG (NY)2.29
PEG (5Y)2.8
Graham Number18.06
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 | 52.26 |
F-Score6
WACC8.26%
ROIC/WACC1.12
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)16.67%
EPS 3Y227.11%
EPS 5Y28.8%
EPS Q2Q%17.95%
EPS Next Y35.2%
EPS Next 2Y31.5%
EPS Next 3Y26.68%
EPS Next 5Y26.58%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
Revenue Next Year23.96%
Revenue Next 2Y23.07%
Revenue Next 3Y21.92%
Revenue Next 5Y22.89%
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.