SHOPIFY INC - CLASS A (SHOP.CA) Stock Fundamental Analysis
TSX:SHOP • CA82509L1076
164.67 CAD
-7.48 (-4.35%)
Last: Feb 27, 2026, 07:00 PM
Taking everything into account, SHOP scores 7 out of 10 in our fundamental rating. SHOP was compared to 11 industry peers in the IT Services industry. SHOP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SHOP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make SHOP a good candidate for growth and quality 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.
- Of the past 5 years SHOP 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 8.10%, SHOP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- With an excellent Return On Equity value of 9.14%, SHOP belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- 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 has a better Profit Margin (10.65%) 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.
- In the last couple of years the Operating Margin of SHOP has grown nicely.
- SHOP has a Gross Margin of 48.07%. This is amongst the best in the industry. SHOP outperforms 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHOP is creating some value.
- Compared to 1 year ago, SHOP has more shares outstanding
- Compared to 5 years ago, SHOP has more shares outstanding
- 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 59.20 indicates that SHOP is not in any danger for bankruptcy at the moment.
- SHOP has a better Altman-Z score (59.20) than 100.00% 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 | ||
| Altman-Z | 59.2 |
ROIC/WACC1.06
WACC8.71%
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.
- A Quick Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 5.96, SHOP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 |
3. Growth
3.1 Past
- SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.33%, 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 29.16% on average per year.
- SHOP shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.14%.
- SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.58% yearly.
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
- The Earnings Per Share is expected to grow by 26.22% 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 22.88% yearly.
EPS Next Y33.3%
EPS Next 2Y30.57%
EPS Next 3Y26.08%
EPS Next 5Y26.22%
Revenue Next Year27%
Revenue Next 2Y25.42%
Revenue Next 3Y24.58%
Revenue Next 5Y22.88%
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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 84.88 indicates a quite expensive valuation of SHOP.
- 72.73% of the companies in the same industry are more expensive than SHOP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (27.10), we can say SHOP is valued expensively.
- A Price/Forward Earnings ratio of 63.62 indicates a quite expensive valuation of 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.
- SHOP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.88 | ||
| Fwd PE | 63.62 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA ratio is in line with the industry average.
- 63.64% of the companies in the same industry are more expensive than SHOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.11 | ||
| EV/EBITDA | 101.77 |
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 26.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.55
PEG (5Y)2.91
EPS Next 2Y30.57%
EPS Next 3Y26.08%
5. Dividend
5.1 Amount
- No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:SHOP (2/27/2026, 7:00:00 PM)
164.67
-7.48 (-4.35%)
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 Owners74.8%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap214.37B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts76
Price Target224.63 (36.41%)
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)-0.46%
PT rev (3m)0.64%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)4.22%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)5.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.88 | ||
| Fwd PE | 63.62 | ||
| P/S | 13.57 | ||
| P/FCF | 78.11 | ||
| P/OCF | 77.11 | ||
| P/B | 11.64 | ||
| P/tB | 12.1 | ||
| EV/EBITDA | 101.77 |
EPS(TTM)1.94
EY1.18%
EPS(NY)2.59
Fwd EY1.57%
FCF(TTM)2.11
FCFY1.28%
OCF(TTM)2.14
OCFY1.3%
SpS12.14
BVpS14.15
TBVpS13.6
PEG (NY)2.55
PEG (5Y)2.91
Graham Number24.85
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 | 59.2 |
F-Score6
WACC8.71%
ROIC/WACC1.06
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 Y33.3%
EPS Next 2Y30.57%
EPS Next 3Y26.08%
EPS Next 5Y26.22%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y27.31%
Revenue growth 5Y31.58%
Sales Q2Q%30.58%
Revenue Next Year27%
Revenue Next 2Y25.42%
Revenue Next 3Y24.58%
Revenue Next 5Y22.88%
EBIT growth 1Y37.77%
EBIT growth 3YN/A
EBIT growth 5Y58.41%
EBIT Next Year37.73%
EBIT Next 3Y38.39%
EBIT Next 5Y37.09%
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 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.