SHOPIFY INC - CLASS A (SHOP)
CA82509L1076 - Common Stock
SHOP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While SHOP has a great health rating, there are worries on its profitability. SHOP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year SHOP was profitable.
SHOP had a positive operating cash flow in the past year.
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 of 1.47%. This is comparable to the rest of the industry: SHOP outperforms 57.14% of its industry peers.
| 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
The Profit Margin of SHOP (1.88%) is comparable to the rest of the industry.
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.
SHOP has more shares outstanding than it did 1 year ago.
SHOP has more shares outstanding than it did 5 years ago.
SHOP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 24.95 indicates that SHOP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 24.95, SHOP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of SHOP is 1.01, which is an excellent value as it means it would take SHOP, only 1.01 years of fcf income to pay off all of its debts.
SHOP's Debt to FCF ratio of 1.01 is fine compared to the rest of the industry. SHOP outperforms 79.76% of its industry peers.
SHOP has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SHOP (0.10) is better than 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 24.95 |
ROIC/WACCN/A
WACC9.69%
2.3 Liquidity
A Current Ratio of 6.99 indicates that SHOP has no problem at all paying its short term obligations.
SHOP has a better Current ratio (6.99) than 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.
With an excellent Quick ratio value of 6.99, SHOP belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.99 | ||
| Quick Ratio | 6.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1725.00% over the past year.
SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.56% yearly.
Looking at the last year, SHOP shows a very strong growth in Revenue. The Revenue has grown by 26.07%.
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
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
The Price/Earnings ratio is 95.44, which means the current valuation is very expensive for SHOP.
Compared to the rest of the industry, the Price/Earnings ratio of SHOP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.76. SHOP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 66.71 indicates a quite expensive valuation of SHOP.
SHOP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, SHOP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.44 | ||
| Fwd PE | 66.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHOP is valued a bit more expensive than 67.86% of the companies in the same industry.
SHOP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.16 | ||
| EV/EBITDA | 2698.24 |
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.
A more expensive valuation may be justified as SHOP's earnings are expected to grow with 34.12% in the coming years.
PEG (NY)2.22
PEG (5Y)1.16
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 (4/19/2024, 7:16:06 PM)
After market: 69.44 -0.23 (-0.33%)69.67
+0.16 (+0.23%)
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 Cap88.84B
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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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.44 | ||
| Fwd PE | 66.71 | ||
| 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)2.22
PEG (5Y)1.16
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y