SHOPIFY INC - CLASS A (SHOP) Fundamental Analysis & Valuation
NASDAQ:SHOP • CA82509L1076
Current stock price
112.31 USD
-7.79 (-6.49%)
Last:
This SHOP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SHOP 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.
- 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
- Looking at the Return On Assets, with a value of 8.10%, SHOP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- SHOP has a better Return On Equity (9.14%) than 65.91% of its industry peers.
- SHOP has a Return On Invested Capital of 9.24%. This is in the better half of the industry: SHOP outperforms 71.59% 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
- The Profit Margin of SHOP (10.65%) is better than 80.68% 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 76.14% of its industry peers.
- In the last couple of years the Operating Margin of SHOP has grown nicely.
- SHOP has a better Gross Margin (48.07%) than 69.32% 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 Health Analysis
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.
- The number of shares outstanding for SHOP has been increased compared to 1 year ago.
- SHOP has more shares outstanding than it did 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
- An Altman-Z score of 56.66 indicates that SHOP is not in any danger for bankruptcy at the moment.
- SHOP has a better Altman-Z score (56.66) than 97.73% 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 | 56.66 |
ROIC/WACC1.1
WACC8.44%
2.3 Liquidity
- A Current Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- SHOP has a Current ratio of 5.96. This is amongst the best in the industry. SHOP outperforms 92.05% of its industry peers.
- A Quick Ratio of 5.96 indicates that SHOP has no problem at all paying its short term obligations.
- SHOP has a better Quick ratio (5.96) than 92.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.96 | ||
| Quick Ratio | 5.96 |
3. SHOP Growth Analysis
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.
- 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%.
- 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 24.29% 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 22.33% yearly.
EPS Next Y30.08%
EPS Next 2Y29.22%
EPS Next 3Y33.03%
EPS Next 5Y24.29%
Revenue Next Year27.63%
Revenue Next 2Y25.65%
Revenue Next 3Y25.28%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. SHOP Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 79.09, which means the current valuation is very expensive for SHOP.
- SHOP's Price/Earnings is on the same level as the industry average.
- SHOP is valuated expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- SHOP is valuated quite expensively with a Price/Forward Earnings ratio of 60.80.
- SHOP's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of SHOP to the average of the S&P500 Index (23.69), we can say SHOP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.09 | ||
| Fwd PE | 60.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHOP is on the same level as its industry peers.
- SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.98 | ||
| EV/EBITDA | 96.97 |
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.
- SHOP's earnings are expected to grow with 33.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)2.71
EPS Next 2Y29.22%
EPS Next 3Y33.03%
5. SHOP Dividend Analysis
5.1 Amount
- SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SHOP Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:SHOP (4/9/2026, 3:45:06 PM)
112.31
-7.79 (-6.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)04-30 2026-04-30/amc
Inst Owners74.21%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap146.46B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts78.21
Price Target163.41 (45.5%)
Short Float %1.48%
Short Ratio1.4
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)-0.34%
PT rev (3m)-8.11%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.09 | ||
| Fwd PE | 60.8 | ||
| P/S | 12.67 | ||
| P/FCF | 72.98 | ||
| P/OCF | 72.04 | ||
| P/B | 10.87 | ||
| P/tB | 11.31 | ||
| EV/EBITDA | 96.97 |
EPS(TTM)1.42
EY1.26%
EPS(NY)1.85
Fwd EY1.64%
FCF(TTM)1.54
FCFY1.37%
OCF(TTM)1.56
OCFY1.39%
SpS8.86
BVpS10.33
TBVpS9.93
PEG (NY)2.63
PEG (5Y)2.71
Graham Number18.17
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 | 56.66 |
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 Year27.63%
Revenue Next 2Y25.65%
Revenue Next 3Y25.28%
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 Fundamental Analysis 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 for SHOP stock?
ChartMill assigns a valuation rating of 3 / 10 to SHOPIFY INC - CLASS A (SHOP). This can be considered as Overvalued.
How profitable is SHOPIFY INC - CLASS A (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.
Can you provide the expected EPS growth for SHOP stock?
The Earnings per Share (EPS) of SHOPIFY INC - CLASS A (SHOP) is expected to grow by 30.08% in the next year.