160 USD
+3.17 (+2.02%)
159.98 USD
-0.02 (-0.01%)
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. 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
With an excellent Return On Assets value of 11.84%, SHOP belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
SHOP has a better Return On Equity (14.24%) than 75.29% of its industry peers.
SHOP has a better Return On Invested Capital (8.30%) than 69.41% 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
The Profit Margin of SHOP (16.65%) is better than 94.12% of its industry peers.
In the last couple of years the Profit Margin of SHOP has declined.
SHOP's Operating Margin of 12.29% is fine compared to the rest of the industry. SHOP outperforms 74.12% of its industry peers.
In the last couple of years the Operating Margin of SHOP has grown nicely.
Looking at the Gross Margin, with a value of 48.75%, SHOP is in the better half of the industry, outperforming 68.24% 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.
Compared to 1 year ago, SHOP has more shares outstanding
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
An Altman-Z score of 51.15 indicates that SHOP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 51.15, 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 | 51.15 |
ROIC/WACC1.07
WACC7.73%
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.
A Quick Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP's Quick ratio of 3.93 is amongst the best of the industry. SHOP outperforms 87.06% of its industry peers.
| 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.
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.27% yearly.
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 Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.54%
Revenue Next Year28.09%
Revenue Next 2Y25.18%
Revenue Next 3Y23.75%
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.
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
With a Price/Earnings ratio of 120.30, SHOP can be considered very expensive at the moment.
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 (26.37), we can say SHOP is valued expensively.
Based on the Price/Forward Earnings ratio of 85.66, the valuation of SHOP can be described as expensive.
SHOP's Price/Forward Earnings ratio is in line with the industry average.
SHOP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.3 | ||
| Fwd PE | 85.66 |
4.2 Price Multiples
SHOP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHOP is more expensive than 65.88% of the companies in the same industry.
SHOP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SHOP is more expensive than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.46 | ||
| EV/EBITDA | 147.68 |
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)5.22
PEG (5Y)1.71
EPS Next 2Y24.76%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
160
+3.17 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner Change0.05%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap208.29B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.07
Price Target175.13 (9.46%)
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)7.83%
PT rev (3m)10.04%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)3.3%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.3 | ||
| Fwd PE | 85.66 | ||
| P/S | 19.47 | ||
| P/FCF | 109.46 | ||
| P/OCF | 108.32 | ||
| P/B | 16.65 | ||
| P/tB | 17.38 | ||
| EV/EBITDA | 147.68 |
EPS(TTM)1.33
EY0.83%
EPS(NY)1.87
Fwd EY1.17%
FCF(TTM)1.46
FCFY0.91%
OCF(TTM)1.48
OCFY0.92%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.22
PEG (5Y)1.71
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 | 51.15 |
F-Score6
WACC7.73%
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 Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.54%
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 5Y23.59%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year32.79%
EBIT Next 3Y33.64%
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 23.05% in the next year.