168.28 USD
+1.54 (+0.92%)
168.26 USD
-0.02 (-0.01%)
Overall SHOP gets a fundamental rating of 7 out of 10. We evaluated SHOP against 88 industry peers in the IT Services industry. While SHOP has a great health rating, its profitability is only average at the moment. SHOP is valued quite expensively, but it does show have an excellent growth rating. These ratings would make SHOP suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SHOP was profitable.
SHOP had a positive operating cash flow in the past year.
Of the past 5 years SHOP 4 years were profitable.
SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHOP's Return On Assets of 11.84% is amongst the best of the industry. SHOP outperforms 89.77% of its industry peers.
The Return On Equity of SHOP (14.24%) is better than 76.14% 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 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
With an excellent Profit Margin value of 16.65%, SHOP belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
In the last couple of years the Profit Margin of SHOP has declined.
Looking at the Operating Margin, with a value of 12.29%, SHOP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SHOP has grown nicely.
SHOP has a better Gross Margin (48.75%) 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 | 12.29% | ||
| 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) just above the Cost of Capital (WACC), SHOP is creating some value.
The number of shares outstanding for SHOP has been increased compared to 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 53.23. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SHOP (53.23) is better 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 | 53.23 |
ROIC/WACC1.02
WACC8.17%
2.3 Liquidity
A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP has a Current ratio of 3.93. This is amongst the best in the industry. SHOP outperforms 86.36% of its industry peers.
A Quick Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP has a Quick ratio of 3.93. This is amongst the best in the industry. SHOP outperforms 86.36% 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.
SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.21% yearly.
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
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
The Earnings Per Share is expected to grow by 21.54% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 23.59% on average over the next years. This is a very strong growth
EPS Next Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y21.54%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
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.
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
The Price/Earnings ratio is 126.53, which means the current valuation is very expensive for SHOP.
SHOP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (27.00), we can say SHOP is valued expensively.
A Price/Forward Earnings ratio of 90.00 indicates a quite expensive valuation of SHOP.
The rest of the industry has a similar Price/Forward Earnings ratio as SHOP.
The average S&P500 Price/Forward Earnings ratio is at 23.70. SHOP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.53 | ||
| Fwd PE | 90 |
4.2 Price Multiples
60.23% of the companies in the same industry are cheaper than SHOP, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHOP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.12 | ||
| EV/EBITDA | 154.2 |
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.
A more expensive valuation may be justified as SHOP's earnings are expected to grow with 25.68% in the coming years.
PEG (NY)5.46
PEG (5Y)1.8
EPS Next 2Y24.82%
EPS Next 3Y25.68%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
168.28
+1.54 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.8%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap219.07B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.36
Price Target177.83 (5.68%)
Short Float %1.45%
Short Ratio2.19
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)1.54%
PT rev (3m)9.49%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.53 | ||
| Fwd PE | 90 | ||
| P/S | 20.48 | ||
| P/FCF | 115.12 | ||
| P/OCF | 113.92 | ||
| P/B | 17.51 | ||
| P/tB | 18.28 | ||
| EV/EBITDA | 154.2 |
EPS(TTM)1.33
EY0.79%
EPS(NY)1.87
Fwd EY1.11%
FCF(TTM)1.46
FCFY0.87%
OCF(TTM)1.48
OCFY0.88%
SpS8.22
BVpS9.61
TBVpS9.21
PEG (NY)5.46
PEG (5Y)1.8
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 | 53.23 |
F-Score6
WACC8.17%
ROIC/WACC1.02
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 Y23.16%
EPS Next 2Y24.82%
EPS Next 3Y25.68%
EPS Next 5Y21.54%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year30.42%
Revenue Next 2Y27.02%
Revenue Next 3Y25.19%
Revenue Next 5Y23.59%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year35.38%
EBIT Next 3Y33.67%
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 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 9 / 10.