SHOPIFY INC - CLASS A (SHOP)
CA82509L1076 - Common Stock
Taking everything into account, SHOP scores 5 out of 10 in our fundamental rating. SHOP was compared to 86 industry peers in the IT Services industry. SHOP has a great financial health rating, but its profitability evaluates not so good. SHOP is valued quite expensively, but it does show have an excellent growth rating.
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.
The reported net income has been mixed in the past 5 years: SHOP reported negative net income in multiple years.
Of the past 5 years SHOP 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.18%, SHOP perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
SHOP has a Return On Equity (1.47%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.47% | ||
| ROIC | N/A |
ROA(3y)-3.05%
ROA(5y)-1.72%
ROE(3y)-4.78%
ROE(5y)-2.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SHOP has a Profit Margin (1.88%) which is in line with its industry peers.
SHOP's Profit Margin has declined in the last couple of years.
The Gross Margin of SHOP (49.79%) is better than 73.81% of its industry peers.
In the last couple of years the Gross Margin of SHOP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 1.88% | ||
| GM | 49.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-44.31%
PM growth 5YN/A
GM growth 3Y-1.83%
GM growth 5Y-2.17%
2. Health
2.1 Basic Checks
SHOP does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SHOP has been increased compared to 1 year ago.
Compared to 5 years ago, SHOP has more shares outstanding
SHOP has a better debt/assets ratio than last year.
2.2 Solvency
SHOP has an Altman-Z score of 25.80. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
SHOP has a better Altman-Z score (25.80) than 100.00% of its industry peers.
SHOP has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.01, SHOP is doing good in the industry, outperforming 79.76% of the companies in the same industry.
SHOP has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.10, SHOP is doing good in the industry, outperforming 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 25.8 |
ROIC/WACCN/A
WACC9.54%
2.3 Liquidity
SHOP has a Current Ratio of 6.99. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
SHOP's Current ratio of 6.99 is amongst the best of the industry. SHOP outperforms 97.62% of its industry peers.
A Quick Ratio of 6.99 indicates that SHOP has no problem at all paying its short term obligations.
SHOP has a better Quick ratio (6.99) than 97.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.99 | ||
| Quick Ratio | 6.99 |
3. Growth
3.1 Past
SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1725.00%, which is quite impressive.
Measured over the past years, SHOP shows a very strong growth in Earnings Per Share. The EPS has been growing by 82.56% on average per year.
The Revenue has grown by 26.07% in the past year. This is a very strong growth!
Measured over the past years, SHOP shows a very strong growth in Revenue. The Revenue has been growing by 45.76% on average per year.
EPS 1Y (TTM)1725%
EPS 3Y22.72%
EPS 5Y82.56%
EPS growth Q2Q385.71%
Revenue 1Y (TTM)26.07%
Revenue growth 3Y34.07%
Revenue growth 5Y45.76%
Revenue growth Q2Q23.57%
3.2 Future
The Earnings Per Share is expected to grow by 26.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.06% on average over the next years. This is a very strong growth
EPS Next Y43.06%
EPS Next 2Y36.43%
EPS Next 3Y34.12%
EPS Next 5Y26.3%
Revenue Next Year22.27%
Revenue Next 2Y21.19%
Revenue Next 3Y21.17%
Revenue Next 5Y20.06%
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
With a Price/Earnings ratio of 102.00, SHOP can be considered very expensive at the moment.
SHOP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, SHOP is valued quite expensively.
A Price/Forward Earnings ratio of 71.30 indicates a quite expensive valuation of SHOP.
SHOP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.88. SHOP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102 | ||
| Fwd PE | 71.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHOP indicates a slightly more expensive valuation: SHOP is more expensive than 67.86% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHOP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.91 | ||
| EV/EBITDA | 2804.08 |
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.
SHOP's earnings are expected to grow with 34.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.37
PEG (5Y)1.24
EPS Next 2Y36.43%
EPS Next 3Y34.12%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHOPIFY INC - CLASS A
NYSE:SHOP (5/3/2024, 7:18:14 PM)
After market: 74.58 +0.12 (+0.16%)74.46
+2.46 (+3.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102 | ||
| Fwd PE | 71.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.37
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 1.88% | ||
| GM | 49.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.99 | ||
| Quick Ratio | 6.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1725%
EPS 3Y22.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y43.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.07%
Revenue growth 3Y34.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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OCF growth 5Y