SHOPIFY INC - CLASS A (SHOP) Stock Fundamental Analysis
USA - NASDAQ:SHOP - CA82509L1076 - Common Stock
147.89 USD
+4.51 (+3.15%)
148.8 USD
+0.91 (+0.62%)
We assign a fundamental rating of 6 out of 10 to SHOP. SHOP was compared to 86 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 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.
Of the past 5 years SHOP 4 years had a positive operating cash flow.
1.2 Ratios
SHOP's Return On Assets of 16.10% is amongst the best of the industry. SHOP outperforms 96.51% of its industry peers.
SHOP has a Return On Equity of 19.34%. This is amongst the best in the industry. SHOP outperforms 82.56% of its industry peers.
SHOP has a Return On Invested Capital of 8.12%. This is in the better half of the industry: SHOP outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 19.34% | ||
| ROIC | 8.12% |
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
With an excellent Profit Margin value of 23.42%, SHOP belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
In the last couple of years the Profit Margin of SHOP has declined.
The Operating Margin of SHOP (12.50%) is better than 75.58% of its industry peers.
SHOP's Operating Margin has improved in the last couple of years.
The Gross Margin of SHOP (49.34%) is better than 67.44% of its industry peers.
SHOP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.5% | ||
| PM (TTM) | 23.42% | ||
| GM | 49.34% |
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
SHOP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHOP has more shares outstanding
SHOP has more shares outstanding than it did 5 years ago.
SHOP has a better debt/assets ratio than last year.
2.2 Solvency
SHOP has an Altman-Z score of 48.96. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 48.96, SHOP belongs to the best of the industry, outperforming 98.84% 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 | 0.51 | ||
| Altman-Z | 48.96 |
ROIC/WACC0.95
WACC8.53%
2.3 Liquidity
SHOP has a Current Ratio of 3.85. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
SHOP has a better Current ratio (3.85) than 86.05% of its industry peers.
A Quick Ratio of 3.85 indicates that SHOP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.85, SHOP belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.85%, which is quite impressive.
The Earnings Per Share has been growing by 70.21% 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 28.98%.
SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.27% yearly.
EPS 1Y (TTM)28.85%
EPS 3Y23.18%
EPS 5Y70.21%
EPS Q2Q%34.62%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.05%
3.2 Future
SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.38% yearly.
Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 22.74% on average per year.
EPS Next Y22.08%
EPS Next 2Y24.17%
EPS Next 3Y25.76%
EPS Next 5Y21.38%
Revenue Next Year27.99%
Revenue Next 2Y25.09%
Revenue Next 3Y23.72%
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.
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 110.37, SHOP can be considered very expensive at the moment.
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 27.27.
With a Price/Forward Earnings ratio of 79.93, SHOP can be considered very expensive at the moment.
SHOP's Price/Forward Earnings is on the same level as the industry average.
SHOP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.37 | ||
| Fwd PE | 79.93 |
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 68.60% of the companies in the same industry.
SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.78 | ||
| EV/EBITDA | 142.54 |
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 25.76% in the coming years.
PEG (NY)5
PEG (5Y)1.57
EPS Next 2Y24.17%
EPS Next 3Y25.76%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
147.89
+4.51 (+3.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners75.49%
Inst Owner Change-0.68%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap192.21B
Analysts76.07
Price Target160.93 (8.82%)
Short Float %1.52%
Short Ratio2.39
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)6.62%
Min EPS beat(2)-5.73%
Max EPS beat(2)18.96%
EPS beat(4)2
Avg EPS beat(4)7.06%
Min EPS beat(4)-11.32%
Max EPS beat(4)26.33%
EPS beat(8)6
Avg EPS beat(8)18.35%
EPS beat(12)10
Avg EPS beat(12)96.64%
EPS beat(16)11
Avg EPS beat(16)50.51%
Revenue beat(2)1
Avg Revenue beat(2)1.18%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)3.08%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)3.08%
Revenue beat(8)5
Avg Revenue beat(8)0.47%
Revenue beat(12)9
Avg Revenue beat(12)1.06%
Revenue beat(16)10
Avg Revenue beat(16)0.03%
PT rev (1m)32.91%
PT rev (3m)38.81%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)2.02%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)4.97%
Revenue NY rev (1m)3.3%
Revenue NY rev (3m)3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.37 | ||
| Fwd PE | 79.93 | ||
| P/S | 19.19 | ||
| P/FCF | 105.78 | ||
| P/OCF | 104.86 | ||
| P/B | 15.85 | ||
| P/tB | 16.57 | ||
| EV/EBITDA | 142.54 |
EPS(TTM)1.34
EY0.91%
EPS(NY)1.85
Fwd EY1.25%
FCF(TTM)1.4
FCFY0.95%
OCF(TTM)1.41
OCFY0.95%
SpS7.71
BVpS9.33
TBVpS8.92
PEG (NY)5
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 19.34% | ||
| ROCE | 10.03% | ||
| ROIC | 8.12% | ||
| ROICexc | 15.22% | ||
| ROICexgc | 16.52% | ||
| OM | 12.5% | ||
| PM (TTM) | 23.42% | ||
| GM | 49.34% | ||
| FCFM | 18.14% |
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
ROICexcg growth 3Y37.8%
ROICexcg 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-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.51 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 50% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.76% | ||
| Profit Quality | 77.48% | ||
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 48.96 |
F-Score5
WACC8.53%
ROIC/WACC0.95
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)28.85%
EPS 3Y23.18%
EPS 5Y70.21%
EPS Q2Q%34.62%
EPS Next Y22.08%
EPS Next 2Y24.17%
EPS Next 3Y25.76%
EPS Next 5Y21.38%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.05%
Revenue Next Year27.99%
Revenue Next 2Y25.09%
Revenue Next 3Y23.72%
Revenue Next 5Y22.74%
EBIT growth 1Y61.34%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year30.54%
EBIT Next 3Y33.18%
EBIT Next 5Y38.64%
FCF growth 1Y796.18%
FCF growth 3Y48.78%
FCF growth 5Y186.89%
OCF growth 1Y606.96%
OCF growth 3Y44.49%
OCF growth 5Y87.03%