NYSE:SHOP

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Executive Summary

Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Shopify's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHOP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.0%

SHOP

2.1%

US IT

3.8%

US Market


1 Year Return

141.0%

SHOP

15.7%

US IT

9.7%

US Market

Return vs Industry: SHOP exceeded the US IT industry which returned 17.4% over the past year.

Return vs Market: SHOP exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SHOPIndustryMarket
7 Day-3.0%2.1%3.8%
30 Day0.2%10.8%11.4%
90 Day55.7%10.9%6.8%
1 Year141.0%141.0%16.8%15.7%12.1%9.7%
3 Year703.9%703.9%94.3%86.4%36.2%27.2%
5 Year2086.1%2086.1%130.4%109.9%63.7%45.4%

Price Volatility Vs. Market

How volatile is Shopify's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shopify undervalued compared to its fair value and its price relative to the market?

28.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SHOP ($735.19) is trading above our estimate of fair value ($425.66)

Significantly Below Fair Value: SHOP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHOP is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: SHOP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SHOP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SHOP is overvalued based on its PB Ratio (28.3x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is Shopify forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

67.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHOP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: SHOP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SHOP's is expected to become profitable in the next 3 years.

Revenue vs Market: SHOP's revenue (26% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: SHOP's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHOP's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Shopify performed over the past 5 years?

-39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHOP is currently unprofitable.

Growing Profit Margin: SHOP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SHOP is unprofitable, and losses have increased over the past 5 years at a rate of -39.2% per year.

Accelerating Growth: Unable to compare SHOP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SHOP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (15.4%).


Return on Equity

High ROE: SHOP has a negative Return on Equity (-4.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Shopify's financial position?


Financial Position Analysis

Short Term Liabilities: SHOP's short term assets ($2.7B) exceed its short term liabilities ($288.6M).

Long Term Liabilities: SHOP's short term assets ($2.7B) exceed its long term liabilities ($141.5M).


Debt to Equity History and Analysis

Debt Level: SHOP is debt free.

Reducing Debt: SHOP has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SHOP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SHOP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Shopify's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SHOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SHOP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SHOP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SHOP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Tobi Lütke (38yo)

12.17yrs

Tenure

US$10,615,952

Compensation

Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. Mr. Lütke has been the Chief Executive Officer of Shopify Inc. since April 2008. Prior to that, h ...


CEO Compensation Analysis

Compensation vs Market: Tobi's total compensation ($USD10.62M) is about average for companies of similar size in the US market ($USD11.52M).

Compensation vs Earnings: Tobi's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Tobias Lütke
Founder12.17yrsUS$10.62m6.53% $5.7b
Amy Shapero
Chief Financial Officer2.17yrsUS$4.54m0.011% $9.3m
Harley Finkelstein
Chief Operating Officer4.42yrsUS$4.42m0.000040% $35.1k
Craig Miller
Chief Product Officer3.33yrsUS$4.42m0.00035% $307.1k
Brittany Forsyth
Chief Talent Officerno dataUS$2.81m0.000010% $8.8k
Jean-Michel Lemieux
Chief Technology Officerno dataUS$1.62m0.011% $9.2m
Katie Keita
Senior Director of Investor Relationsno datano datano data
Joseph Frasca
Senior VP6.08yrsno data0.00034% $298.3k
Darrell Etherington
Public Relations Managerno datano datano data
Jeffrey Weiser
Chief Marketing Officer2.33yrsUS$4.80mno data

3.9yrs

Average Tenure

40yo

Average Age

Experienced Management: SHOP's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tobias Lütke
Founder12.17yrsUS$10.62m6.53% $5.7b
John Phillips
Independent Director10.17yrsno data3.31% $2.9b
Robert Ashe
Lead Independent Director5.08yrsUS$296.55k0.0077% $6.8m
Gail Goodman
Independent Director3.58yrsUS$259.20k0.0030% $2.6m
Jeremy Levine
Independent Director9.33yrsno data0.060% $53.0m
Colleen Johnston
Independent Director1.42yrsUS$656.79k0.00062% $544.0k

5.1yrs

Average Tenure

59yo

Average Age

Experienced Board: SHOP's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SHOP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

Shopify Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shopify Inc.
  • Ticker: SHOP
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$87.735b
  • Shares outstanding: 119.34m
  • Website: https://www.shopify.com

Number of Employees


Location

  • Shopify Inc.
  • 150 Elgin Street
  • 8th Floor
  • Ottawa
  • Ontario
  • K2P 1L4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHOPNYSE (New York Stock Exchange)YesClass A Subordinate Voting SharesUSUSDMay 2015
SHOPTSX (The Toronto Stock Exchange)YesClass A Subordinate Voting SharesCACADMay 2015
307DB (Deutsche Boerse AG)YesClass A Subordinate Voting SharesDEEURMay 2015
0VHALSE (London Stock Exchange)YesClass A Subordinate Voting SharesGBUSDMay 2015
SHOP NBMV (Bolsa Mexicana de Valores)YesClass A Subordinate Voting SharesMXMXNMay 2015

Biography

Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 05:56
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.