147.8 USD
+3.24 (+2.24%)
147.82 USD
+0.02 (+0.01%)
SHOP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While SHOP has a great health rating, its profitability is only average at the moment. SHOP is valued quite expensive, but it does show an excellent growth. These ratings could make SHOP a good candidate 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.
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 90.70% of its industry peers.
SHOP's Return On Equity of 14.24% is fine compared to the rest of the industry. SHOP outperforms 75.58% of its industry peers.
SHOP has a Return On Invested Capital of 8.30%. This is in the better half of the industry: SHOP outperforms 69.77% 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 94.19% of its industry peers.
SHOP's Profit Margin has declined in the last couple of years.
SHOP has a Operating Margin of 12.29%. This is in the better half of the industry: SHOP outperforms 74.42% of its industry peers.
SHOP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.75%, SHOP is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
SHOP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.29% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHOP is creating some value.
The number of shares outstanding for SHOP has been increased compared to 1 year ago.
The number of shares outstanding for SHOP has been increased compared to 5 years ago.
The debt/assets ratio for SHOP has been reduced compared to a year ago.
2.2 Solvency
SHOP has an Altman-Z score of 47.31. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SHOP (47.31) is better than 98.84% of its industry peers.
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 | 47.31 |
ROIC/WACC1.06
WACC7.83%
2.3 Liquidity
SHOP has a Current Ratio of 3.93. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SHOP (3.93) is better than 87.21% of its industry peers.
A Quick Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.93, SHOP belongs to the best of the industry, outperforming 87.21% 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.
SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.21% yearly.
The Revenue has grown by 30.25% in the past year. This is a very strong growth!
Measured over the past years, SHOP shows a very strong growth in Revenue. The Revenue has been growing by 41.27% on average per year.
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 21.38% on average per year.
The Revenue is expected to grow by 22.74% on average over the next years. This is a very strong growth
EPS Next Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.38%
Revenue Next Year28.09%
Revenue Next 2Y25.18%
Revenue Next 3Y23.75%
Revenue Next 5Y22.74%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 111.13 indicates a quite expensive valuation of SHOP.
SHOP's Price/Earnings is on the same level as the industry average.
SHOP is valuated expensively when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
SHOP is valuated quite expensively with a Price/Forward Earnings ratio of 79.13.
SHOP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.13 | ||
| Fwd PE | 79.13 |
4.2 Price Multiples
65.12% of the companies in the same industry are cheaper than SHOP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHOP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.94 | ||
| EV/EBITDA | 135.65 |
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.
The decent profitability rating of SHOP may justify a higher PE ratio.
A more expensive valuation may be justified as SHOP's earnings are expected to grow with 25.97% in the coming years.
PEG (NY)4.82
PEG (5Y)1.58
EPS Next 2Y24.76%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
147.8
+3.24 (+2.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner Change0.02%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap192.09B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.07
Price Target175.13 (18.49%)
Short Float %1.57%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)7.83%
PT rev (3m)10.04%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)3.33%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.13 | ||
| Fwd PE | 79.13 | ||
| P/S | 17.96 | ||
| P/FCF | 100.94 | ||
| P/OCF | 99.89 | ||
| P/B | 15.35 | ||
| P/tB | 16.02 | ||
| EV/EBITDA | 135.65 |
EPS(TTM)1.33
EY0.9%
EPS(NY)1.87
Fwd EY1.26%
FCF(TTM)1.46
FCFY0.99%
OCF(TTM)1.48
OCFY1%
SpS8.23
BVpS9.63
TBVpS9.22
PEG (NY)4.82
PEG (5Y)1.58
Graham Number16.97
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 | 47.31 |
F-Score6
WACC7.83%
ROIC/WACC1.06
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 Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.38%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year28.09%
Revenue Next 2Y25.18%
Revenue Next 3Y23.75%
Revenue Next 5Y22.74%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year32.79%
EBIT Next 3Y33.64%
EBIT Next 5Y38.64%
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 of SHOPIFY INC - CLASS A (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.
What is the financial health of SHOPIFY INC - CLASS A (SHOP) stock?
The financial health rating of SHOPIFY INC - CLASS A (SHOP) 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) is expected to grow by 23.05% in the next year.