SHOPIFY INC - CLASS A (SHOP) Stock Fundamental Analysis
USA - NASDAQ:SHOP - CA82509L1076 - Common Stock
147.8 USD
+3.24 (+2.24%)
147.82 USD
+0.02 (+0.01%)
Overall SHOP gets a fundamental rating of 7 out of 10. We evaluated SHOP against 85 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. These ratings could make SHOP a good candidate for growth investing.
1. Profitability
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 11.84%, SHOP belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
SHOP's Return On Equity of 14.24% is fine compared to the rest of the industry. SHOP outperforms 75.29% of its industry peers.
SHOP has a better Return On Invested Capital (8.30%) than 68.24% 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
Looking at the Profit Margin, with a value of 16.65%, SHOP belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
SHOP's Profit Margin has declined in the last couple of years.
SHOP has a Operating Margin of 12.29%. This is in the better half of the industry: SHOP outperforms 74.12% of its industry peers.
In the last couple of years the Operating Margin of SHOP has grown nicely.
SHOP's Gross Margin of 48.75% is fine compared to the rest of the industry. SHOP outperforms 68.24% of its industry peers.
SHOP's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHOP is still creating some value.
SHOP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHOP has more shares outstanding
The debt/assets ratio for SHOP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 46.31 indicates that SHOP is not in any danger for bankruptcy at the moment.
SHOP has a Altman-Z score of 46.31. This is amongst the best in the industry. SHOP outperforms 98.82% 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 | 46.31 |
ROIC/WACC1.06
WACC7.83%
2.3 Liquidity
A Current Ratio of 3.93 indicates that SHOP has no problem at all paying its short term obligations.
SHOP's Current ratio of 3.93 is amongst the best of the industry. SHOP outperforms 87.06% of its industry peers.
SHOP has a Quick Ratio of 3.93. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SHOP (3.93) is better than 87.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.93 |
3. Growth
3.1 Past
SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.65%, which is quite good.
Measured over the past years, SHOP shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.21% on average per year.
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 30.25%.
SHOP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.27% yearly.
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
Based on estimates for the next years, SHOP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.38% on average per year.
Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 22.74% on average per year.
EPS Next Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.38%
Revenue Next Year28.09%
Revenue Next 2Y25.18%
Revenue Next 3Y23.75%
Revenue Next 5Y22.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 111.13 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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 79.13, the valuation of SHOP can be described as expensive.
SHOP's Price/Forward Earnings ratio is in line with the industry average.
SHOP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.13 | ||
| Fwd PE | 79.13 |
4.2 Price Multiples
SHOP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHOP is more expensive than 65.88% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHOP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.94 | ||
| EV/EBITDA | 132.53 |
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 25.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.82
PEG (5Y)1.58
EPS Next 2Y24.76%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
No dividends for SHOP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
147.8
+3.24 (+2.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner Change0.01%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap192.09B
Revenue(TTM)10.70B
Net Income(TTM)1.78B
Analysts76.07
Price Target165.96 (12.29%)
Short Float %1.57%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2.18%
PT rev (3m)37.07%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)1.48%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)2.66%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.13 | ||
| Fwd PE | 79.13 | ||
| P/S | 17.96 | ||
| P/FCF | 100.94 | ||
| P/OCF | 99.89 | ||
| P/B | 15.35 | ||
| P/tB | 16.02 | ||
| EV/EBITDA | 132.53 |
EPS(TTM)1.33
EY0.9%
EPS(NY)1.87
Fwd EY1.26%
FCF(TTM)1.46
FCFY0.99%
OCF(TTM)1.48
OCFY1%
SpS8.23
BVpS9.63
TBVpS9.22
PEG (NY)4.82
PEG (5Y)1.58
Graham Number16.97
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 | 46.31 |
F-Score6
WACC7.83%
ROIC/WACC1.06
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 Y23.05%
EPS Next 2Y24.76%
EPS Next 3Y25.97%
EPS Next 5Y21.38%
Revenue 1Y (TTM)30.25%
Revenue growth 3Y24.41%
Revenue growth 5Y41.27%
Sales Q2Q%31.54%
Revenue Next Year28.09%
Revenue Next 2Y25.18%
Revenue Next 3Y23.75%
Revenue Next 5Y22.74%
EBIT growth 1Y46.27%
EBIT growth 3Y53.23%
EBIT growth 5YN/A
EBIT Next Year32.79%
EBIT Next 3Y33.64%
EBIT Next 5Y38.64%
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 of SHOPIFY INC - CLASS A (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.
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.
What is the earnings growth outlook for SHOPIFY INC - CLASS A?
The Earnings per Share (EPS) of SHOPIFY INC - CLASS A (SHOP) is expected to grow by 23.05% in the next year.