164.19 USD
-0.56 (-0.34%)
163.75 USD
-0.44 (-0.27%)
Overall SHOP gets a fundamental rating of 7 out of 10. We evaluated SHOP against 85 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. These ratings could make SHOP a good candidate for growth investing.
1. Profitability
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
Looking at the Return On Assets, with a value of 11.84%, SHOP belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
SHOP has a better Return On Equity (14.24%) than 75.29% of its industry peers.
SHOP has a Return On Invested Capital of 8.30%. This is in the better half of the industry: SHOP outperforms 70.59% 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 better Profit Margin (16.65%) than 92.94% of its industry peers.
In the last couple of years the Profit Margin of SHOP has declined.
The Operating Margin of SHOP (12.29%) is better than 74.12% of its industry peers.
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 68.24% 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
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.
The number of shares outstanding for SHOP has been increased compared to 5 years ago.
Compared to 1 year ago, SHOP has an improved debt to assets ratio.
2.2 Solvency
SHOP has an Altman-Z score of 52.62. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 52.62, SHOP belongs to the best of the industry, outperforming 98.82% 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 | 0.48 | ||
| Altman-Z | 52.62 |
ROIC/WACC1.07
WACC7.74%
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's Current ratio of 3.93 is amongst the best of the industry. SHOP outperforms 87.06% 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.
With an excellent Quick ratio value of 3.93, SHOP belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
| 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
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
Measured over the past years, SHOP shows a very strong growth in Revenue. The Revenue has been growing by 41.27% on average per year.
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
SHOP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.54% yearly.
Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 23.59% on average per year.
EPS Next Y23%
EPS Next 2Y24.76%
EPS Next 3Y24.57%
EPS Next 5Y21.54%
Revenue Next Year30.41%
Revenue Next 2Y26.93%
Revenue Next 3Y24.96%
Revenue Next 5Y23.59%
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
SHOP is valuated quite expensively with a Price/Earnings ratio of 123.45.
The rest of the industry has a similar Price/Earnings ratio as SHOP.
The average S&P500 Price/Earnings ratio is at 26.54. SHOP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 87.90, the valuation of SHOP can be described as expensive.
SHOP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SHOP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.45 | ||
| Fwd PE | 87.9 |
4.2 Price Multiples
64.71% of the companies in the same industry are cheaper than SHOP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHOP is valued a bit more expensive than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.32 | ||
| EV/EBITDA | 152.27 |
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 24.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.37
PEG (5Y)1.76
EPS Next 2Y24.76%
EPS Next 3Y24.57%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
164.19
-0.56 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.76%
Inst Owner Change0.07%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap213.75B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target176.17 (7.3%)
Short Float %1.37%
Short Ratio1.83
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)6.15%
PT rev (3m)9.16%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)2.45%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.45 | ||
| Fwd PE | 87.9 | ||
| P/S | 19.98 | ||
| P/FCF | 112.32 | ||
| P/OCF | 111.15 | ||
| P/B | 17.08 | ||
| P/tB | 17.83 | ||
| EV/EBITDA | 152.27 |
EPS(TTM)1.33
EY0.81%
EPS(NY)1.87
Fwd EY1.14%
FCF(TTM)1.46
FCFY0.89%
OCF(TTM)1.48
OCFY0.9%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.37
PEG (5Y)1.76
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 | 52.62 |
F-Score6
WACC7.74%
ROIC/WACC1.07
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%
EPS Next 2Y24.76%
EPS Next 3Y24.57%
EPS Next 5Y21.54%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year30.41%
Revenue Next 2Y26.93%
Revenue Next 3Y24.96%
Revenue Next 5Y23.59%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year35.58%
EBIT Next 3Y32.76%
EBIT Next 5Y38.08%
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 of SHOPIFY INC - CLASS A (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.
What is the financial health of SHOPIFY INC - CLASS A (SHOP) stock?
The financial health rating of SHOPIFY INC - CLASS A (SHOP) is 9 / 10.
What is the earnings growth outlook for SHOPIFY INC - CLASS A?
The Earnings per Share (EPS) of SHOPIFY INC - CLASS A (SHOP) is expected to grow by 23% in the next year.