Shopify (SHOP) Stock Analysis
This is a peer-relative look at Shopify (SHOP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | SHOP |
|---|---|
| Name | Shopify Inc. |
| Country/Region | Canada |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | IT Services |
| GICS Sub-Industry | Internet Services & Infrastructure |
| Market Capitalization | 232.57 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | May 20, 2015 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Total Return (1Y) | 16.04% | -11.35% |
| Total Return (3Y, Annualized) | 51.23% | 10.93% |
| Total Return (5Y, Annualized) | 4.97% | -6.75% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 58.56% | 61.10% |
| Beta (5Y) | 2.68 | 1.14 |
| Max Drawdown (5Y) | -84.82% | -76.51% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.20 | -0.28 |
| Sortino Ratio (1Y) | 0.29 | -0.40 |
Profitability
ROE (TTM)
Shopify (SHOP) posts ROE of 15.54%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
SHOP
Software & Services industry group
15.54%
Group distribution
- Max
- 62.27%
- Q3
- 18.32%
- SHOP
- 15.54%
- Median
- 5.48%
- Q1
- -13.62%
- Min
- -59.77%
Largest peers
- ORCL
- 41.19%
- PLTR
- 38.10%
- MSFT
- 34.04%
- SAP
- 18.32%
- SHOP
- 15.54%
- PANW
- 1.74%
- CRWD
- 1.46%
Net Margin (TTM)
Shopify (SHOP) keeps 14.53% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
SHOP
Software & Services industry group
14.53%
Group distribution
- Max
- 41.43%
- Q3
- 14.96%
- SHOP
- 14.53%
- Median
- 4.26%
- Q1
- -5.85%
- Min
- -30.95%
Largest peers
- PLTR
- 49.01%
- MSFT
- 40.31%
- ORCL
- 26.36%
- SAP
- 20.41%
- SHOP
- 14.53%
- PANW
- 2.67%
- CRWD
- 0.83%
Operating Margin (TTM)
Shopify (SHOP) turns 17.56% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
SHOP
Software & Services industry group
17.56%
Group distribution
- Max
- 47.12%
- SHOP
- 17.56%
- Q3
- 15.51%
- Median
- 4.87%
- Q1
- -6.45%
- Min
- -39.13%
Largest peers
- PLTR
- 47.12%
- MSFT
- 45.11%
- ORCL
- 35.63%
- SAP
- 27.62%
- SHOP
- 17.56%
- PANW
- 5.40%
- CRWD
- -2.26%
Profitability Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| ROE (TTM) | 15.54% | 5.48% |
| ROA (TTM) | 10.19% | 2.06% |
| Net Margin (TTM) | 14.53% | 4.26% |
| Operating Margin (TTM) | 17.56% | 4.87% |
| Gross Margin (TTM) | 47.77% | 69.30% |
Growth
Revenue Growth
Shopify (SHOP) grew revenue 30.14%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
Shopify (SHOP) grew earnings per share -39.47%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 30.14% | 14.62% |
| Revenue Growth (3Y CAGR) | 27.31% | 13.63% |
| EPS Growth (YoY) | -39.47% | 7.79% |
| EPS Growth (3Y CAGR) | -- | 18.25% |
Financial Strength
Current Ratio (MRQ)
Shopify (SHOP) has current ratio of 5.35, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
SHOP
Software & Services industry group
5.35
Group distribution
- SHOP
- 5.35
- Max
- 5.11
- Q3
- 2.74
- Median
- 1.63
- Q1
- 1.02
- Min
- 0.03
Largest peers
- PLTR
- 7.23
- SHOP
- 5.35
- CRWD
- 1.57
- MSFT
- 1.23
- ORCL
- 1.17
- SAP
- 1.15
- PANW
- 0.87
Debt / Equity (MRQ)
Shopify (SHOP) has debt-to-equity ratio of 0.01, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
SHOP
Software & Services industry group
0.01
Group distribution
- Max
- 2.52
- Q3
- 1.10
- Median
- 0.35
- Q1
- 0.06
- SHOP
- 0.01
- Min
- 0.00
Largest peers
- ORCL
- 2.52
- MSFT
- 0.29
- SAP
- 0.22
- CRWD
- 0.16
- PANW
- 0.09
- PLTR
- 0.02
- SHOP
- 0.01
Financial Strength Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 5.35 | 1.63 |
| Debt / Equity (MRQ) | 0.01 | 0.35 |
| Net Debt / EBITDA | -1.99 | 0.01 |
Dividends
Dividend Yield (TTM)
Shopify (SHOP) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
SHOP
Software & Services industry group
0.00%
Group distribution
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ORCL
- 1.41%
- SAP
- 1.16%
- MSFT
- 0.68%
- SHOP
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Payout Ratio (TTM)
Shopify (SHOP) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
SHOP
Software & Services industry group
0.00%
Group distribution
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SAP
- 37.70%
- ORCL
- 31.35%
- MSFT
- 19.83%
- SHOP
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Shopify (SHOP) trades at P/E ratio of 121.09, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
SHOP
Software & Services industry group
121.09
Group distribution
- SHOP
- 121.09
- Max
- 121.09
- Q3
- 60.42
- Median
- 31.84
- Q1
- 17.70
- Min
- 6.45
Largest peers
- CRWD
- 5,260.20
- PANW
- 1,009.57
- PLTR
- 180.17
- SHOP
- 121.09
- MSFT
- 30.15
- SAP
- 27.97
- ORCL
- 21.53
P/S Ratio (TTM)
Shopify (SHOP) trades at 17.53 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
SHOP
Software & Services industry group
17.53
Group distribution
- Max
- 19.98
- SHOP
- 17.53
- Q3
- 9.41
- Median
- 4.36
- Q1
- 2.30
- Min
- 0.02
Largest peers
- PLTR
- 81.59
- CRWD
- 49.91
- PANW
- 28.77
- SHOP
- 17.53
- MSFT
- 12.11
- SAP
- 6.58
- ORCL
- 5.80
P/B Ratio (MRQ)
Shopify (SHOP) trades at 18.22 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
SHOP
Software & Services industry group
18.22
Group distribution
- Max
- 19.30
- SHOP
- 18.22
- Q3
- 9.10
- Median
- 4.43
- Q1
- 1.98
- Min
- -3.90
Largest peers
- SAP
- 70.66
- CRWD
- 52.78
- PLTR
- 51.38
- SHOP
- 18.22
- PANW
- 11.97
- MSFT
- 9.09
- ORCL
- 6.72
Valuation Metrics
| Metric | Current stock: SHOP | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 121.09 | 31.84 |
| P/S Ratio (TTM) | 17.53 | 4.36 |
| P/B Ratio (MRQ) | 18.22 | 4.43 |
| Free Cash Flow Yield (TTM) | 0.68% | 3.63% |