SHOPIFY INC - CLASS A (SHOP) Fundamental Analysis & Valuation
NASDAQ:SHOP • CA82509L1076
122.96 USD
-3.21 (-2.54%)
At close: Mar 13, 2026
122.95 USD
-0.01 (-0.01%)
After Hours: 3/13/2026, 5:01:36 PM
This SHOP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to SHOP. SHOP was compared to 87 industry peers in the IT Services industry. SHOP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SHOP is valued quite expensively, but it does show have an excellent growth rating. These ratings could make SHOP a good candidate for growth investing.
1. SHOP Profitability Analysis
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
- SHOP's Return On Assets of 8.10% is fine compared to the rest of the industry. SHOP outperforms 75.86% of its industry peers.
- SHOP has a Return On Equity of 9.14%. This is in the better half of the industry: SHOP outperforms 65.52% of its industry peers.
- The Return On Invested Capital of SHOP (9.24%) is better than 72.41% 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
- With a decent Profit Margin value of 10.65%, SHOP is doing good in the industry, outperforming 78.16% of the companies in the same industry.
- SHOP's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 12.82%, SHOP is in the better half of the industry, outperforming 75.86% 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 (48.07%) than 68.97% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHOP is creating some value.
- SHOP has more shares outstanding than it did 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
- SHOP has an Altman-Z score of 59.42. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
- SHOP has a better Altman-Z score (59.42) 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 | 59.42 |
ROIC/WACC1.15
WACC8.03%
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.
- SHOP has a Current ratio of 5.96. This is amongst the best in the industry. SHOP outperforms 93.10% 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 Quick ratio of 5.96. This is amongst the best in the industry. SHOP outperforms 93.10% 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%.
- The Revenue has been growing by 31.58% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, SHOP will show a very strong growth in Earnings Per Share. The EPS will grow by 24.29% on average per year.
- The Revenue is expected to grow by 22.33% on average over the next years. This is a very strong growth
EPS Next Y30.08%
EPS Next 2Y29.22%
EPS Next 3Y33.03%
EPS Next 5Y24.29%
Revenue Next Year27.62%
Revenue Next 2Y25.64%
Revenue Next 3Y25.2%
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.
- 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. SHOP Valuation Analysis
4.1 Price/Earnings Ratio
- SHOP is valuated quite expensively with a Price/Earnings ratio of 86.59.
- The rest of the industry has a similar Price/Earnings ratio as SHOP.
- When comparing the Price/Earnings ratio of SHOP to the average of the S&P500 Index (25.71), we can say SHOP is valued expensively.
- With a Price/Forward Earnings ratio of 66.57, SHOP can be considered very expensive at the moment.
- SHOP's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.59 | ||
| Fwd PE | 66.57 |
4.2 Price Multiples
- SHOP's Enterprise Value to EBITDA ratio is in line with the industry average.
- SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.9 | ||
| EV/EBITDA | 102.2 |
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.
- A more expensive valuation may be justified as SHOP's earnings are expected to grow with 33.03% in the coming years.
PEG (NY)2.88
PEG (5Y)2.97
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
122.96
-3.21 (-2.54%)
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 Owners74.21%
Inst Owner Change-1%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap160.35B
Revenue(TTM)11.56B
Net Income(TTM)1.23B
Analysts78.18
Price Target163.96 (33.34%)
Short Float %1.19%
Short Ratio1.24
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)-9.42%
PT rev (3m)-6.93%
EPS NQ rev (1m)2.48%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)4.42%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)2.97%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.59 | ||
| Fwd PE | 66.57 | ||
| P/S | 13.88 | ||
| P/FCF | 79.9 | ||
| P/OCF | 78.88 | ||
| P/B | 11.9 | ||
| P/tB | 12.38 | ||
| EV/EBITDA | 102.2 |
EPS(TTM)1.42
EY1.15%
EPS(NY)1.85
Fwd EY1.5%
FCF(TTM)1.54
FCFY1.25%
OCF(TTM)1.56
OCFY1.27%
SpS8.86
BVpS10.33
TBVpS9.93
PEG (NY)2.88
PEG (5Y)2.97
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 | 59.42 |
F-Score6
WACC8.03%
ROIC/WACC1.15
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 Year27.62%
Revenue Next 2Y25.64%
Revenue Next 3Y25.2%
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 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.
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.