157.99 USD
+0.48 (+0.3%)
158 USD
+0.01 (+0.01%)
We assign a fundamental rating of 7 out of 10 to SHOP. SHOP was compared to 88 industry peers in the IT Services industry. While SHOP has a great health rating, its profitability is only average at the moment. SHOP is valued quite expensive, but it does show an excellent growth. These ratings would make SHOP suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year SHOP was profitable.
- In the past year SHOP had a positive cash flow from operations.
- SHOP had positive earnings in 4 of the past 5 years.
- SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.84%, SHOP belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
- SHOP has a better Return On Equity (14.24%) than 76.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.30%, SHOP is in the better half of the industry, outperforming 71.59% of the companies in the same industry.
| 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.
- In the last couple of years the Operating Margin of SHOP has grown nicely.
- SHOP has a better Gross Margin (48.75%) than 69.32% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHOP is still creating some value.
- Compared to 1 year ago, SHOP has more shares outstanding
- 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 50.38. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
- SHOP has a better Altman-Z score (50.38) 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 | 50.38 |
ROIC/WACC1.04
WACC7.99%
2.3 Liquidity
- A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
- The Current ratio of SHOP (3.93) is better than 85.23% of its industry peers.
- 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.
- SHOP has a Quick ratio of 3.93. This is amongst the best in the industry. SHOP outperforms 85.23% of its industry peers.
| 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.
- 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 24.01% on average over the next years. This is a very strong growth
- SHOP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.85% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 118.79, 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 (27.54), we can say SHOP is valued expensively.
- The Price/Forward Earnings ratio is 84.50, which means the current valuation is very expensive for SHOP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SHOP is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (24.31), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.79 | ||
| Fwd PE | 84.5 |
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.
- 60.23% of the companies in the same industry are cheaper than SHOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 108.08 | ||
| EV/EBITDA | 145.28 |
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.
- SHOP's earnings are expected to grow with 25.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.13
PEG (5Y)1.69
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% |
157.99
+0.48 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-09 2026-02-09/amc
Inst Owners74.8%
Inst Owner Change0.25%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap205.68B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target177.83 (12.56%)
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 | 118.79 | ||
| Fwd PE | 84.5 | ||
| P/S | 19.23 | ||
| P/FCF | 108.08 | ||
| P/OCF | 106.96 | ||
| P/B | 16.44 | ||
| P/tB | 17.16 | ||
| EV/EBITDA | 145.28 |
EPS(TTM)1.33
EY0.84%
EPS(NY)1.87
Fwd EY1.18%
FCF(TTM)1.46
FCFY0.93%
OCF(TTM)1.48
OCFY0.93%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.13
PEG (5Y)1.69
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 | 50.38 |
F-Score6
WACC7.99%
ROIC/WACC1.04
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.