119.29 USD
-12.91 (-9.77%)
At close: Feb 3, 2026
118.8 USD
-0.49 (-0.41%)
After Hours: 2/3/2026, 8:00:02 PM
We assign a fundamental rating of 6 out of 10 to SHOP. SHOP was compared to 88 industry peers in the IT Services industry. SHOP has an excellent financial health rating, but there are some minor concerns on its profitability. SHOP is valued quite expensive, but it does show an excellent growth. This makes SHOP very considerable 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
- The Return On Assets of SHOP (11.84%) is better than 89.77% of its industry peers.
- SHOP has a Return On Equity of 14.24%. This is in the better half of the industry: SHOP outperforms 76.14% of its industry peers.
- SHOP's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. SHOP outperforms 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.
- With a decent Operating Margin value of 12.29%, SHOP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- SHOP's Operating Margin has improved in the last couple of years.
- 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHOP is destroying value.
- Compared to 1 year ago, SHOP has more shares outstanding
- SHOP has more shares outstanding than it did 5 years ago.
- SHOP has a better debt/assets ratio than last year.
2.2 Solvency
- SHOP has an Altman-Z score of 42.56. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
- SHOP has a better Altman-Z score (42.56) 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 | 42.56 |
ROIC/WACC0.99
WACC8.35%
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's Quick ratio of 3.93 is amongst the best of 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.
- The Earnings Per Share has been growing by 70.21% on average over the past years. This is a very strong growth
- 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.
- SHOP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.85% yearly.
EPS Next Y23.29%
EPS Next 2Y25.37%
EPS Next 3Y26%
EPS Next 5Y24.01%
Revenue Next Year30.47%
Revenue Next 2Y27.16%
Revenue Next 3Y25.37%
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
- With a Price/Earnings ratio of 89.69, SHOP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of SHOP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, SHOP is valued quite expensively.
- With a Price/Forward Earnings ratio of 63.24, SHOP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SHOP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.69 | ||
| Fwd PE | 63.24 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SHOP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.61 | ||
| EV/EBITDA | 120.82 |
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.
- The decent profitability rating of SHOP may justify a higher PE ratio.
- SHOP's earnings are expected to grow with 26.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.85
PEG (5Y)1.28
EPS Next 2Y25.37%
EPS Next 3Y26%
5. Dividend
5.1 Amount
- No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
119.29
-12.91 (-9.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners74.8%
Inst Owner Change-2.72%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap155.30B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target179.04 (50.09%)
Short Float %0.97%
Short Ratio1.59
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)0.68%
PT rev (3m)7.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.45%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.69 | ||
| Fwd PE | 63.24 | ||
| P/S | 14.52 | ||
| P/FCF | 81.61 | ||
| P/OCF | 80.76 | ||
| P/B | 12.41 | ||
| P/tB | 12.96 | ||
| EV/EBITDA | 120.82 |
EPS(TTM)1.33
EY1.11%
EPS(NY)1.89
Fwd EY1.58%
FCF(TTM)1.46
FCFY1.23%
OCF(TTM)1.48
OCFY1.24%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)3.85
PEG (5Y)1.28
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 | 42.56 |
F-Score6
WACC8.35%
ROIC/WACC0.99
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 Y23.29%
EPS Next 2Y25.37%
EPS Next 3Y26%
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 2Y27.16%
Revenue Next 3Y25.37%
Revenue Next 5Y23.85%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year34.97%
EBIT Next 3Y33.64%
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 6 / 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 8 / 10.