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.
High growth potential with excellent balance sheet.
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.
7 Day Return
1 Year Return
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.
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
2 months ago | Simply Wall StAre Insiders Selling Shopify Inc. (NYSE:SHOP) Stock?
3 months ago | Simply Wall StWhen Will Shopify Inc. (NYSE:SHOP) Turn A Profit?
4 months ago | Simply Wall StThe Shopify (NYSE:SHOP) Share Price Is Up 788% And Shareholders Are Delighted
Is Shopify undervalued compared to its fair value and its price relative to the market?
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).
How is Shopify forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
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%).
How has Shopify performed over the past 5 years?
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.
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 ($141.5M).
Debt to Equity History and Analysis
Debt Level: SHOP is debt free.
Reducing Debt: SHOP has not had any debt for past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SHOP has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if SHOP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Shopify's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SHOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SHOP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SHOP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SHOP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SHOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tobi Lütke (38yo)
Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. Mr. Lütke has been the Chief Executive Officer of Shopify Inc. since April 2008. Prior to that, h ...
CEO Compensation Analysis
Compensation vs Market: Tobi's total compensation ($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.
|Chief Financial Officer||2.17yrs||US$4.54m||0.011% $9.3m|
|Chief Operating Officer||4.42yrs||US$4.42m||0.000040% $35.1k|
|Chief Product Officer||3.33yrs||US$4.42m||0.00035% $307.1k|
|Chief Talent Officer||no data||US$2.81m||0.000010% $8.8k|
|Chief Technology Officer||no data||US$1.62m||0.011% $9.2m|
|Senior Director of Investor Relations||no data||no data||no data|
|Senior VP||6.08yrs||no data||0.00034% $298.3k|
|Public Relations Manager||no data||no data||no data|
|Chief Marketing Officer||2.33yrs||US$4.80m||no data|
Experienced Management: SHOP's management team is considered experienced (3.9 years average tenure).
|Independent Director||10.17yrs||no data||3.31% $2.9b|
|Lead Independent Director||5.08yrs||US$296.55k||0.0077% $6.8m|
|Independent Director||3.58yrs||US$259.20k||0.0030% $2.6m|
|Independent Director||9.33yrs||no data||0.060% $53.0m|
|Independent Director||1.42yrs||US$656.79k||0.00062% $544.0k|
Experienced Board: SHOP's board of directors are considered experienced (5.1 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.
Shopify Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Shopify Inc.
- 150 Elgin Street
- 8th Floor
- K2P 1L4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SHOP||NYSE (New York Stock Exchange)||Yes||Class A Subordinate Voting Shares||US||USD||May 2015|
|SHOP||TSX (The Toronto Stock Exchange)||Yes||Class A Subordinate Voting Shares||CA||CAD||May 2015|
|307||DB (Deutsche Boerse AG)||Yes||Class A Subordinate Voting Shares||DE||EUR||May 2015|
|0VHA||LSE (London Stock Exchange)||Yes||Class A Subordinate Voting Shares||GB||USD||May 2015|
|SHOP N||BMV (Bolsa Mexicana de Valores)||Yes||Class A Subordinate Voting Shares||MX||MXN||May 2015|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/05 05:56|
|End of Day Share Price||2020/06/04 00:00|
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.