SHOPIFY INC - CLASS A (SHOP.CA) Fundamental Analysis & Valuation
TSX:SHOP • CA82509L1076
Current stock price
171.88 CAD
+1.61 (+0.95%)
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
- SHOP had positive earnings in the past year.
- 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's Return On Assets of 8.10% is amongst the best of the industry. SHOP outperforms 81.82% of its industry peers.
- SHOP has a Return On Equity of 9.14%. This is amongst the best in the industry. SHOP outperforms 90.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.24%, SHOP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| 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
- The Profit Margin of SHOP (10.65%) is better than 100.00% of its industry peers.
- SHOP's Profit Margin has been stable in the last couple of years.
- SHOP has a Operating Margin of 12.82%. This is amongst the best in the industry. SHOP outperforms 90.91% of its industry peers.
- SHOP's Operating Margin has improved in the last couple of years.
- SHOP has a Gross Margin of 48.07%. This is amongst the best in the industry. SHOP outperforms 81.82% of its industry peers.
- SHOP's Gross Margin has declined in the last couple of years.
| 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 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.
- 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.
2.2 Solvency
- An Altman-Z score of 58.69 indicates that SHOP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 58.69, SHOP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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 | 58.69 |
ROIC/WACC0.96
WACC9.58%
2.3 Liquidity
- A Current Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- SHOP's Current ratio of 5.96 is amongst the best of the industry. SHOP outperforms 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 Quick ratio of 5.96. This is amongst the best in the industry. SHOP outperforms 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.
- SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.16% yearly.
- Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.14%.
- Measured over the past years, SHOP shows a very strong growth in Revenue. The Revenue has been growing by 31.58% on average per year.
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 Y30.31%
EPS Next 2Y29.25%
EPS Next 3Y33.18%
EPS Next 5Y24.29%
Revenue Next Year27.66%
Revenue Next 2Y25.7%
Revenue Next 3Y25.26%
Revenue Next 5Y22.33%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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. SHOP.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 88.60, SHOP can be considered very expensive at the moment.
- 72.73% of the companies in the same industry are more expensive than SHOP, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.42, SHOP is valued quite expensively.
- SHOP is valuated quite expensively with a Price/Forward Earnings ratio of 67.95.
- Based on the Price/Forward Earnings ratio, SHOP is valued cheaper than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.6 | ||
| Fwd PE | 67.95 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, SHOP is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.7 | ||
| EV/EBITDA | 100.81 |
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.
- SHOP's earnings are expected to grow with 33.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)3.04
EPS Next 2Y29.25%
EPS Next 3Y33.18%
5. SHOP.CA Dividend Analysis
5.1 Amount
- SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SHOP.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:SHOP (4/24/2026, 7:00:00 PM)
171.88
+1.61 (+0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners74.29%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap224.15B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts78.21
Price Target223.73 (30.17%)
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)1.4%
Min EPS beat(4)-7.07%
Max EPS beat(4)19.07%
EPS beat(8)4
Avg EPS beat(8)7.72%
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)-0.4%
PT rev (3m)-9.95%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)2.44%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.6 | ||
| Fwd PE | 67.95 | ||
| P/S | 14.19 | ||
| P/FCF | 81.7 | ||
| P/OCF | 80.65 | ||
| P/B | 12.17 | ||
| P/tB | 12.66 | ||
| EV/EBITDA | 100.81 |
EPS(TTM)1.94
EY1.13%
EPS(NY)2.53
Fwd EY1.47%
FCF(TTM)2.1
FCFY1.22%
OCF(TTM)2.13
OCFY1.24%
SpS12.11
BVpS14.12
TBVpS13.58
PEG (NY)2.92
PEG (5Y)3.04
Graham Number24.8288 (-85.55%)
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 | 58.69 |
F-Score6
WACC9.58%
ROIC/WACC0.96
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 Y30.31%
EPS Next 2Y29.25%
EPS Next 3Y33.18%
EPS Next 5Y24.29%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
Revenue Next Year27.66%
Revenue Next 2Y25.7%
Revenue Next 3Y25.26%
Revenue Next 5Y22.33%
EBIT growth 1Y37.77%
EBIT growth 3YN/A
EBIT growth 5Y58.41%
EBIT Next Year41.1%
EBIT Next 3Y42.86%
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.
How profitable is SHOPIFY INC - CLASS A (SHOP.CA) stock?
SHOPIFY INC - CLASS A (SHOP.CA) has a profitability rating of 7 / 10.
What is the financial health of SHOPIFY INC - CLASS A (SHOP.CA) stock?
The financial health rating of SHOPIFY INC - CLASS A (SHOP.CA) is 8 / 10.
Can you provide the expected EPS growth for SHOP stock?
The Earnings per Share (EPS) of SHOPIFY INC - CLASS A (SHOP.CA) is expected to grow by 30.31% in the next year.