164.48 USD
-3.8 (-2.26%)
163.99 USD
-0.49 (-0.3%)
We assign a fundamental rating of 7 out of 10 to SHOP. SHOP was compared to 88 industry peers in the IT Services industry. SHOP has an excellent financial health rating, but there are some minor concerns on its profitability. SHOP is valued quite expensively, but it does show have an excellent growth rating. This makes SHOP very considerable 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.
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
The Return On Assets of SHOP (11.84%) is better than 89.77% of its industry peers.
The Return On Equity of SHOP (14.24%) is better than 76.14% of its industry peers.
The Return On Invested Capital of SHOP (8.30%) is better than 71.59% 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
With an excellent Profit Margin value of 16.65%, SHOP belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
In the last couple of years the Profit Margin of SHOP has declined.
Looking at the Operating Margin, with a value of 12.29%, SHOP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 69.32% 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
SHOP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SHOP has been increased compared to 1 year ago.
Compared to 5 years ago, SHOP has more shares outstanding
Compared to 1 year ago, SHOP has an improved debt to assets ratio.
2.2 Solvency
SHOP has an Altman-Z score of 52.54. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
SHOP has a better Altman-Z score (52.54) than 98.86% 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 | 52.54 |
ROIC/WACC1.05
WACC7.94%
2.3 Liquidity
A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP's Current ratio of 3.93 is amongst the best of the industry. SHOP outperforms 85.23% of its industry peers.
A Quick Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.93, SHOP belongs to the top of the industry, outperforming 85.23% 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.
The Earnings Per Share has been growing by 70.21% on average over the past years. This is a very strong growth
The Revenue has grown by 30.25% in the past year. This is a very strong growth!
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
SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.01% yearly.
The Revenue is expected to grow by 23.85% on average over the next years. This is a very strong growth
EPS Next Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y24.01%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
Revenue Next 5Y23.85%
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
Based on the Price/Earnings ratio of 123.67, the valuation of SHOP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SHOP.
When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (27.19), we can say SHOP is valued expensively.
SHOP is valuated quite expensively with a Price/Forward Earnings ratio of 87.97.
SHOP's Price/Forward Earnings is on the same level as the industry average.
SHOP is valuated expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.67 | ||
| Fwd PE | 87.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHOP is valued a bit more expensive than 60.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHOP is valued a bit more expensive than the industry average as 60.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.52 | ||
| EV/EBITDA | 152.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 25.68% in the coming years.
PEG (NY)5.34
PEG (5Y)1.76
EPS Next 2Y24.82%
EPS Next 3Y25.68%
5. Dividend
5.1 Amount
SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
164.48
-3.8 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.8%
Inst Owner Change0.25%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap214.13B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target177.83 (8.12%)
Short Float %1.45%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.94%
PT rev (3m)9.49%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.67 | ||
| Fwd PE | 87.97 | ||
| P/S | 20.02 | ||
| P/FCF | 112.52 | ||
| P/OCF | 111.35 | ||
| P/B | 17.12 | ||
| P/tB | 17.86 | ||
| EV/EBITDA | 152.01 |
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)5.34
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 | 52.54 |
F-Score6
WACC7.94%
ROIC/WACC1.05
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 Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y24.01%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
Revenue Next 5Y23.85%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year35.38%
EBIT Next 3Y33.67%
EBIT Next 5Y36.72%
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 for 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.
How financially healthy is SHOPIFY INC - CLASS A?
The financial health rating of SHOPIFY INC - CLASS A (SHOP) is 9 / 10.