SHOPIFY INC - CLASS A (SHOP) Stock Fundamental Analysis
NASDAQ:SHOP • CA82509L1076
123.8 USD
+2.16 (+1.78%)
At close: Feb 19, 2026
124.1 USD
+0.3 (+0.24%)
Pre-Market: 2/20/2026, 5:39:13 AM
Taking everything into account, SHOP scores 7 out of 10 in our fundamental rating. SHOP was compared to 87 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. With these ratings, SHOP could be worth investigating further 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.
- SHOP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of SHOP (8.10%) is better than 80.46% of its industry peers.
- SHOP has a better Return On Equity (9.14%) than 65.52% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.24%, SHOP is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
| 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
- With a decent Profit Margin value of 10.65%, SHOP is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of SHOP has remained more or less at the same level.
- SHOP has a better Operating Margin (12.82%) than 75.86% of its industry peers.
- SHOP's Operating Margin has improved in the last couple of years.
- SHOP has a Gross Margin of 48.07%. This is in the better half of the industry: SHOP outperforms 70.11% 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
- 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.
- 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 58.24 indicates that SHOP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SHOP (58.24) is better than 98.85% 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 | 58.24 |
ROIC/WACC1.05
WACC8.8%
2.3 Liquidity
- SHOP has a Current Ratio of 5.96. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of SHOP (5.96) is better than 93.10% of its industry peers.
- SHOP has a Quick Ratio of 5.96. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
- SHOP has a better Quick ratio (5.96) than 93.10% of its industry peers.
| 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.
- SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.16% yearly.
- SHOP shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.14%.
- Measured over the past years, SHOP shows a very strong growth in Revenue. The Revenue has been growing by 31.58% on average per year.
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
- Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 22.88% on average per year.
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 87.18 indicates a quite expensive valuation of SHOP.
- Compared to the rest of the industry, the Price/Earnings ratio of SHOP is on the same level as its industry peers.
- SHOP is valuated expensively when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 65.40, SHOP can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as SHOP.
- SHOP is valuated expensively when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.18 | ||
| Fwd PE | 65.4 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA is on the same level as the industry average.
- SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.3 | ||
| EV/EBITDA | 99.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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)2.62
PEG (5Y)2.99
EPS Next 2Y30.57%
EPS Next 3Y26.08%
5. Dividend
5.1 Amount
- SHOP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
123.8
+2.16 (+1.78%)
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 Change-2.17%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap161.17B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts76
Price Target181.01 (46.21%)
Short Float %0.71%
Short Ratio0.83
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)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)1.79%
PT rev (3m)9.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)1.24%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.18 | ||
| Fwd PE | 65.4 | ||
| P/S | 13.95 | ||
| P/FCF | 80.3 | ||
| P/OCF | 79.28 | ||
| P/B | 11.96 | ||
| P/tB | 12.44 | ||
| EV/EBITDA | 99.97 |
EPS(TTM)1.42
EY1.15%
EPS(NY)1.89
Fwd EY1.53%
FCF(TTM)1.54
FCFY1.25%
OCF(TTM)1.56
OCFY1.26%
SpS8.88
BVpS10.35
TBVpS9.95
PEG (NY)2.62
PEG (5Y)2.99
Graham Number18.18
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 | 58.24 |
F-Score6
WACC8.8%
ROIC/WACC1.05
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 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.