SHOPIFY INC - CLASS A (SHOP.CA) Fundamental Analysis & Valuation
TSX:SHOP • CA82509L1076
Current stock price
159.95 CAD
-3.77 (-2.3%)
Last:
This SHOP.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SHOP.CA Profitability Analysis
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.
- Of the past 5 years SHOP 4 years had a positive operating cash flow.
1.2 Ratios
- SHOP has a better Return On Assets (8.10%) than 81.82% of its industry peers.
- The Return On Equity of SHOP (9.14%) is better than 90.91% of its industry peers.
- SHOP has a Return On Invested Capital of 9.24%. This is amongst the best in the industry. SHOP outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 9.14% | ||
| ROIC | 9.24% |
ROA(3y)7.93%
ROA(5y)2.69%
ROE(3y)9.36%
ROE(5y)2.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SHOP's Profit Margin of 10.65% is amongst the best of the industry. SHOP outperforms 100.00% of its industry peers.
- SHOP's Profit Margin has been stable in the last couple of years.
- The Operating Margin of SHOP (12.82%) is better than 90.91% of its industry peers.
- SHOP's Operating Margin has improved in the last couple of years.
- SHOP has a better Gross Margin (48.07%) than 81.82% of its industry peers.
- In the last couple of years the Gross Margin of SHOP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 10.65% | ||
| GM | 48.07% |
OM growth 3YN/A
OM growth 5Y20.39%
PM growth 3YN/A
PM growth 5Y-0.47%
GM growth 3Y-0.76%
GM growth 5Y-1.79%
2. SHOP.CA Health Analysis
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.
- SHOP has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for SHOP has been increased compared to 5 years ago.
- SHOP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- SHOP has an Altman-Z score of 54.61. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
- SHOP's Altman-Z score of 54.61 is amongst the best of the industry. SHOP outperforms 100.00% 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 | ||
| Altman-Z | 54.61 |
ROIC/WACC1.1
WACC8.44%
2.3 Liquidity
- SHOP has a Current Ratio of 5.96. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of SHOP (5.96) is better than 100.00% of its industry peers.
- SHOP has a Quick Ratio of 5.96. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
- SHOP has a better Quick ratio (5.96) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 |
3. SHOP.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 18.33% over the past year.
- Measured over the past years, SHOP shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.16% on average per year.
- The Revenue has grown by 30.14% in the past year. This is a very strong growth!
- The Revenue has been growing by 31.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.33%
EPS 3Y228.66%
EPS 5Y29.16%
EPS Q2Q%23.08%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
3.2 Future
- SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.29% yearly.
- SHOP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.33% yearly.
EPS Next Y30.08%
EPS Next 2Y29.22%
EPS Next 3Y33.03%
EPS Next 5Y24.29%
Revenue Next Year27.64%
Revenue Next 2Y25.65%
Revenue Next 3Y25.21%
Revenue Next 5Y22.33%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. SHOP.CA Valuation Analysis
4.1 Price/Earnings Ratio
- SHOP is valuated quite expensively with a Price/Earnings ratio of 81.61.
- SHOP's Price/Earnings ratio is a bit cheaper when compared to the industry. SHOP is cheaper than 72.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.23, SHOP is valued quite expensively.
- The Price/Forward Earnings ratio is 62.59, which means the current valuation is very expensive for SHOP.
- SHOP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SHOP is cheaper than 72.73% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (22.51), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.61 | ||
| Fwd PE | 62.59 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, SHOP is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.12 | ||
| EV/EBITDA | 93.1 |
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 33.03% in the coming years.
PEG (NY)2.71
PEG (5Y)2.8
EPS Next 2Y29.22%
EPS Next 3Y33.03%
5. SHOP.CA Dividend Analysis
5.1 Amount
- No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SHOP.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:SHOP (3/26/2026, 7:00:00 PM)
159.95
-3.77 (-2.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-06 2026-05-06/amc
Inst Owners74.21%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap208.59B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts78.18
Price Target224.63 (40.44%)
Short Float %N/A
Short RatioN/A
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)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-7.07%
Max EPS beat(2)-0.68%
EPS beat(4)1
Avg EPS beat(4)1.37%
Min EPS beat(4)-7.07%
Max EPS beat(4)18.96%
EPS beat(8)4
Avg EPS beat(8)7.7%
EPS beat(12)8
Avg EPS beat(12)36.56%
EPS beat(16)10
Avg EPS beat(16)51.73%
Revenue beat(2)2
Avg Revenue beat(2)0.68%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1.17%
Revenue beat(4)3
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)3.12%
Revenue beat(8)5
Avg Revenue beat(8)0.43%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)0.28%
PT rev (1m)-9.17%
PT rev (3m)-8.7%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.61 | ||
| Fwd PE | 62.59 | ||
| P/S | 13.05 | ||
| P/FCF | 75.12 | ||
| P/OCF | 74.16 | ||
| P/B | 11.19 | ||
| P/tB | 11.64 | ||
| EV/EBITDA | 93.1 |
EPS(TTM)1.96
EY1.23%
EPS(NY)2.56
Fwd EY1.6%
FCF(TTM)2.13
FCFY1.33%
OCF(TTM)2.16
OCFY1.35%
SpS12.26
BVpS14.29
TBVpS13.74
PEG (NY)2.71
PEG (5Y)2.8
Graham Number25.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 9.14% | ||
| ROCE | 10.73% | ||
| ROIC | 9.24% | ||
| ROICexc | 15.9% | ||
| ROICexgc | 17.01% | ||
| OM | 12.82% | ||
| PM (TTM) | 10.65% | ||
| GM | 48.07% | ||
| FCFM | 17.37% |
ROA(3y)7.93%
ROA(5y)2.69%
ROE(3y)9.36%
ROE(5y)2.45%
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 3YN/A
ROICexgc growth 5Y-8.24%
ROICexc growth 3YN/A
ROICexc growth 5Y3.1%
OM growth 3YN/A
OM growth 5Y20.39%
PM growth 3YN/A
PM growth 5Y-0.47%
GM growth 3Y-0.76%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.87% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | 1481 | ||
| Cash Conversion | 134.46% | ||
| Profit Quality | 163.04% | ||
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 | ||
| Altman-Z | 54.61 |
F-Score6
WACC8.44%
ROIC/WACC1.1
Cap/Depr(3y)64.12%
Cap/Depr(5y)64.84%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.6%
Profit Quality(3y)307.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.33%
EPS 3Y228.66%
EPS 5Y29.16%
EPS Q2Q%23.08%
EPS Next Y30.08%
EPS Next 2Y29.22%
EPS Next 3Y33.03%
EPS Next 5Y24.29%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
Revenue Next Year27.64%
Revenue Next 2Y25.65%
Revenue Next 3Y25.21%
Revenue Next 5Y22.33%
EBIT growth 1Y37.77%
EBIT growth 3YN/A
EBIT growth 5Y58.41%
EBIT Next Year41.16%
EBIT Next 3Y42.94%
EBIT Next 5Y33.43%
FCF growth 1Y25.67%
FCF growth 3YN/A
FCF growth 5Y39.28%
OCF growth 1Y25.8%
OCF growth 3YN/A
OCF growth 5Y36.76%
SHOPIFY INC - CLASS A / SHOP.CA Fundamental Analysis FAQ
What is the ChartMill fundamental rating of SHOPIFY INC - CLASS A (SHOP.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SHOP.CA.
What is the valuation status for SHOP stock?
ChartMill assigns a valuation rating of 4 / 10 to SHOPIFY INC - CLASS A (SHOP.CA). This can be considered as Fairly Valued.
What is the profitability of SHOP stock?
SHOPIFY INC - CLASS A (SHOP.CA) has a profitability rating of 7 / 10.
How financially healthy is SHOPIFY INC - CLASS A?
The financial health rating of SHOPIFY INC - CLASS A (SHOP.CA) is 9 / 10.