SHOPIFY INC - CLASS A (SHOP)
CA82509L1076 - Common Stock
SHOP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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
In the past year SHOP was profitable.
SHOP had a positive operating cash flow in the past year.
In multiple years SHOP reported negative net income over the last 5 years.
SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHOP has a Return On Assets of 11.23%. This is amongst the best in the industry. SHOP outperforms 88.89% of its industry peers.
SHOP has a better Return On Equity (13.68%) than 74.07% of its industry peers.
With a decent Return On Invested Capital value of 5.91%, SHOP is doing good in the industry, outperforming 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.23% | ||
| ROE | 13.68% | ||
| ROIC | 5.91% |
ROA(3y)-3.05%
ROA(5y)-1.72%
ROE(3y)-4.78%
ROE(5y)-2.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SHOP (16.85%) is better than 93.83% of its industry peers.
SHOP's Profit Margin has declined in the last couple of years.
The Operating Margin of SHOP (11.51%) is better than 75.31% of its industry peers.
SHOP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 50.93%, SHOP is doing good in the industry, outperforming 74.07% of the companies in the same industry.
In the last couple of years the Gross Margin of SHOP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.51% | ||
| PM (TTM) | 16.85% | ||
| GM | 50.93% |
OM growth 3Y-74.41%
OM growth 5YN/A
PM growth 3Y-44.31%
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-2.17%
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.
SHOP has more shares outstanding than it did 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
An Altman-Z score of 39.71 indicates that SHOP is not in any danger for bankruptcy at the moment.
SHOP has a better Altman-Z score (39.71) than 98.77% of its industry peers.
SHOP has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
SHOP's Debt to FCF ratio of 0.64 is amongst the best of the industry. SHOP outperforms 82.72% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that SHOP is not too dependend on debt financing.
SHOP has a Debt to Equity ratio of 0.09. This is in the better half of the industry: SHOP outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 39.71 |
ROIC/WACC0.56
WACC10.49%
2.3 Liquidity
A Current Ratio of 7.10 indicates that SHOP has no problem at all paying its short term obligations.
SHOP's Current ratio of 7.10 is amongst the best of the industry. SHOP outperforms 98.77% of its industry peers.
SHOP has a Quick Ratio of 7.10. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 7.10, SHOP belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.1 | ||
| Quick Ratio | 7.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 150.00% over the past year.
SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.56% yearly.
The Revenue has grown by 23.47% in the past year. This is a very strong growth!
SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.76% yearly.
EPS 1Y (TTM)150%
EPS 3Y22.72%
EPS 5Y82.56%
EPS Q2Q%45.83%
Revenue 1Y (TTM)23.47%
Revenue growth 3Y34.07%
Revenue growth 5Y45.76%
Sales Q2Q%26.14%
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 32.75% on average per year.
The Revenue is expected to grow by 22.03% on average over the next years. This is a very strong growth
EPS Next Y79.78%
EPS Next 2Y45.71%
EPS Next 3Y38.46%
EPS Next 5Y32.75%
Revenue Next Year25.8%
Revenue Next 2Y24.28%
Revenue Next 3Y22.9%
Revenue Next 5Y22.03%
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
With a Price/Earnings ratio of 94.74, SHOP can be considered very expensive at the moment.
SHOP's Price/Earnings is on the same level as the industry average.
SHOP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.
SHOP is valuated quite expensively with a Price/Forward Earnings ratio of 70.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHOP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.74 | ||
| Fwd PE | 70.29 |
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 65.43% of the companies listed in the same industry.
SHOP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.31 | ||
| EV/EBITDA | 135.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHOP's earnings are expected to grow with 38.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.15
EPS Next 2Y45.71%
EPS Next 3Y38.46%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHOPIFY INC - CLASS A
NYSE:SHOP (12/20/2024, 8:04:00 PM)
After market: 109.5 +0.55 (+0.5%)108.95
+1.88 (+1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners70.55%
Inst Owner Change2.33%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap140.77B
Analysts74.39
Price Target118.22 (8.51%)
Short Float %1.27%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.14%
Min EPS beat(2)25.95%
Max EPS beat(2)26.33%
EPS beat(4)4
Avg EPS beat(4)18.6%
Min EPS beat(4)6.91%
Max EPS beat(4)26.33%
EPS beat(8)8
Avg EPS beat(8)135.61%
EPS beat(12)10
Avg EPS beat(12)69.89%
EPS beat(16)13
Avg EPS beat(16)70.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)1.18%
Revenue beat(8)6
Avg Revenue beat(8)1.15%
Revenue beat(12)8
Avg Revenue beat(12)0.06%
Revenue beat(16)11
Avg Revenue beat(16)1.22%
PT rev (1m)0.92%
PT rev (3m)49.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.17%
EPS NY rev (1m)15.78%
EPS NY rev (3m)16.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.3%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.74 | ||
| Fwd PE | 70.29 | ||
| P/S | 17.14 | ||
| P/FCF | 98.31 | ||
| P/OCF | 97.15 | ||
| P/B | 13.91 | ||
| P/tB | 14.6 | ||
| EV/EBITDA | 135.72 |
EPS(TTM)1.15
EY1.06%
EPS(NY)1.55
Fwd EY1.42%
FCF(TTM)1.11
FCFY1.02%
OCF(TTM)1.12
OCFY1.03%
SpS6.36
BVpS7.83
TBVpS7.46
PEG (NY)1.19
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.23% | ||
| ROE | 13.68% | ||
| ROCE | 8.28% | ||
| ROIC | 5.91% | ||
| ROICexc | 10.35% | ||
| ROICexgc | 11.17% | ||
| OM | 11.51% | ||
| PM (TTM) | 16.85% | ||
| GM | 50.93% | ||
| FCFM | 17.44% |
ROA(3y)-3.05%
ROA(5y)-1.72%
ROE(3y)-4.78%
ROE(5y)-2.7%
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 3Y-84.12%
ROICexcg growth 5YN/A
ROICexc growth 3Y-80.85%
ROICexc growth 5YN/A
OM growth 3Y-74.41%
OM growth 5YN/A
PM growth 3Y-44.31%
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-2.17%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 44.74% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 147.41% | ||
| Profit Quality | 103.47% | ||
| Current Ratio | 7.1 | ||
| Quick Ratio | 7.1 | ||
| Altman-Z | 39.71 |
F-Score7
WACC10.49%
ROIC/WACC0.56
Cap/Depr(3y)62.53%
Cap/Depr(5y)84.46%
Cap/Sales(3y)0.85%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)150%
EPS 3Y22.72%
EPS 5Y82.56%
EPS Q2Q%45.83%
EPS Next Y79.78%
EPS Next 2Y45.71%
EPS Next 3Y38.46%
EPS Next 5Y32.75%
Revenue 1Y (TTM)23.47%
Revenue growth 3Y34.07%
Revenue growth 5Y45.76%
Sales Q2Q%26.14%
Revenue Next Year25.8%
Revenue Next 2Y24.28%
Revenue Next 3Y22.9%
Revenue Next 5Y22.03%
EBIT growth 1Y282.54%
EBIT growth 3Y-65.69%
EBIT growth 5YN/A
EBIT Next Year89.07%
EBIT Next 3Y50.3%
EBIT Next 5Y44.63%
FCF growth 1Y949.85%
FCF growth 3Y33.19%
FCF growth 5YN/A
OCF growth 1Y1547.55%
OCF growth 3Y30.48%
OCF growth 5Y151.94%