164.19 USD
-0.56 (-0.34%)
163.75 USD
-0.44 (-0.27%)
Taking everything into account, SHOP scores 7 out of 10 in our fundamental rating. SHOP was compared to 85 industry peers in the IT Services industry. SHOP has an excellent financial health rating, but there are some minor concerns on its profitability. SHOP shows excellent growth, but is valued quite expensive already. With these ratings, SHOP could be worth investigating further 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.
SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHOP has a better Return On Assets (11.84%) than 89.41% of its industry peers.
SHOP has a Return On Equity of 14.24%. This is in the better half of the industry: SHOP outperforms 75.29% 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 70.59% 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's Profit Margin of 16.65% is amongst the best of the industry. SHOP outperforms 92.94% of its industry peers.
SHOP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.29%, SHOP is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
SHOP's Operating Margin has improved in the last couple of years.
SHOP has a Gross Margin of 48.75%. This is in the better half of the industry: SHOP outperforms 68.24% of its industry peers.
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.
SHOP has more shares outstanding than it did 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 52.62. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 52.62, SHOP belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
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 | 52.62 |
ROIC/WACC1.07
WACC7.74%
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.
Looking at the Current ratio, with a value of 3.93, SHOP belongs to the top of the industry, outperforming 87.06% of the companies in the same industry.
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 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.65% over the past year.
SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.21% yearly.
SHOP shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 21.54% on average over the next years. This is a very strong growth
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.
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
The Price/Earnings ratio is 123.45, which means the current valuation is very expensive for SHOP.
Compared to the rest of the industry, the Price/Earnings ratio of SHOP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (26.54), we can say SHOP is valued expensively.
Based on the Price/Forward Earnings ratio of 87.90, 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 (23.78), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.45 | ||
| Fwd PE | 87.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHOP indicates a slightly more expensive valuation: SHOP is more expensive than 64.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHOP is valued a bit more expensive than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.32 | ||
| EV/EBITDA | 152.27 |
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 24.57% in the coming years.
PEG (NY)5.37
PEG (5Y)1.76
EPS Next 2Y24.76%
EPS Next 3Y24.57%
5. Dividend
5.1 Amount
SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
164.19
-0.56 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.76%
Inst Owner Change0.07%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap213.75B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target176.17 (7.3%)
Short Float %1.37%
Short Ratio1.83
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)6.15%
PT rev (3m)9.16%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.45 | ||
| Fwd PE | 87.9 | ||
| P/S | 19.98 | ||
| P/FCF | 112.32 | ||
| P/OCF | 111.15 | ||
| P/B | 17.08 | ||
| P/tB | 17.83 | ||
| EV/EBITDA | 152.27 |
EPS(TTM)1.33
EY0.81%
EPS(NY)1.87
Fwd EY1.14%
FCF(TTM)1.46
FCFY0.89%
OCF(TTM)1.48
OCFY0.9%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.37
PEG (5Y)1.76
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 | 52.62 |
F-Score6
WACC7.74%
ROIC/WACC1.07
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 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% in the next year.