155.81 USD
-2.18 (-1.38%)
155.176 USD
-0.63 (-0.41%)
SHOP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. SHOP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SHOP is valued quite expensively, but it does show have an excellent growth rating. 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.
- 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
- SHOP has a Return On Assets of 11.84%. This is amongst the best in the industry. SHOP outperforms 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
- SHOP has a Profit Margin of 16.65%. This is amongst the best in the industry. SHOP outperforms 93.18% of its industry peers.
- In the last couple of years the Profit Margin of SHOP has declined.
- SHOP has a better Operating Margin (12.29%) than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of SHOP has grown nicely.
- SHOP has a Gross Margin of 48.75%. This is in the better half of the industry: SHOP outperforms 69.32% of its industry peers.
- In the last couple of years the Gross Margin of SHOP has declined.
| 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.
- SHOP has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SHOP has more shares outstanding
- SHOP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 49.86 indicates that SHOP is not in any danger for bankruptcy at the moment.
- SHOP has a better Altman-Z score (49.86) than 98.86% of its industry peers.
- 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 | 49.86 |
ROIC/WACC1.01
WACC8.23%
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.
- SHOP has a Current ratio of 3.93. This is amongst the best in the industry. SHOP outperforms 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
- 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.
- Measured over the past years, SHOP shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.21% on average per year.
- 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
- Based on estimates for the next years, SHOP will show a very strong growth in Earnings Per Share. The EPS will grow by 24.01% on average per year.
- Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 23.85% on average per year.
EPS Next Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y24.01%
Revenue Next Year30.47%
Revenue Next 2Y27.09%
Revenue Next 3Y25.24%
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 117.15, the valuation of SHOP can be described as expensive.
- SHOP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (27.38), we can say SHOP is valued expensively.
- Based on the Price/Forward Earnings ratio of 83.33, the valuation of SHOP can be described as expensive.
- SHOP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. SHOP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.15 | ||
| Fwd PE | 83.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SHOP is valued a bit more expensive than the industry average as 60.23% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, SHOP is valued a bit more expensive than 60.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 106.59 | ||
| EV/EBITDA | 143.63 |
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.
- 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 25.68% in the coming years.
PEG (NY)5.06
PEG (5Y)1.67
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% |
155.81
-2.18 (-1.38%)
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 Change0.23%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap202.84B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target179.04 (14.91%)
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)1.63%
PT rev (3m)10.24%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.15 | ||
| Fwd PE | 83.33 | ||
| P/S | 18.96 | ||
| P/FCF | 106.59 | ||
| P/OCF | 105.48 | ||
| P/B | 16.21 | ||
| P/tB | 16.92 | ||
| EV/EBITDA | 143.63 |
EPS(TTM)1.33
EY0.85%
EPS(NY)1.87
Fwd EY1.2%
FCF(TTM)1.46
FCFY0.94%
OCF(TTM)1.48
OCFY0.95%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.06
PEG (5Y)1.67
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 | 49.86 |
F-Score6
WACC8.23%
ROIC/WACC1.01
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 Year30.47%
Revenue Next 2Y27.09%
Revenue Next 3Y25.24%
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.