Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. More Details
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: SHOP's weekly volatility (8%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SHOP exceeded the US IT industry which returned 66.8% over the past year.
Return vs Market: SHOP exceeded the US Market which returned 57.5% over the past year.
Long-Term 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
16 hours ago | Simply Wall StHere's What Shopify Inc.'s (NYSE:SHOP) Shareholder Ownership Structure Looks Like
1 month ago | Simply Wall StCan Shopify (NYSE:SHOP) Continue To Grow Its Returns On Capital?
2 months ago | Simply Wall StWe Wouldn't Rely On Shopify's (NYSE:SHOP) Statutory Earnings As A Guide
Is Shopify undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SHOP ($1207.8) is trading above our estimate of fair value ($459.99)
Significantly Below Fair Value: SHOP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SHOP is poor value based on its PE Ratio (452x) compared to the US IT industry average (39.1x).
PE vs Market: SHOP is poor value based on its PE Ratio (452x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: SHOP is poor value based on its PEG Ratio (17.5x)
Price to Book Ratio
PB vs Industry: SHOP is overvalued based on its PB Ratio (23.1x) compared to the US IT industry average (5.3x).
How is Shopify forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHOP's forecast earnings growth (25.8% per year) is above the savings rate (2%).
Earnings vs Market: SHOP's earnings (25.8% per year) are forecast to grow faster than the US market (18.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SHOP's revenue (27% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: SHOP's revenue (27% 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 (11.8%).
How has Shopify performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SHOP has a large one-off gain of $103.6M impacting its December 31 2020 financial results.
Growing Profit Margin: SHOP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SHOP has become profitable over the past 5 years, growing earnings by 20.5% per year.
Accelerating Growth: SHOP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SHOP has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (8.4%).
Return on Equity
High ROE: SHOP's Return on Equity (5%) is considered low.
How is Shopify's financial position?
Financial Position Analysis
Short Term Liabilities: SHOP's short term assets ($6.9B) exceed its short term liabilities ($438.3M).
Long Term Liabilities: SHOP's short term assets ($6.9B) exceed its long term liabilities ($923.9M).
Debt to Equity History and Analysis
Debt Level: SHOP's debt to equity ratio (11.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if SHOP's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SHOP's debt is well covered by operating cash flow (56.1%).
Interest Coverage: SHOP earns more interest than it pays, so coverage of interest payments is not a concern.
What is Shopify current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SHOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SHOP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SHOP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SHOP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SHOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tobi Lütke (39 yo)
Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. Mr. Lütke has been the Chief Executive Officer of Shopify Inc. since April 2008. Prior to that, h...
CEO Compensation Analysis
Compensation vs Market: Tobi's total compensation ($USD10.62M) is about average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Tobi's compensation has been consistent with company performance over the past year.
Experienced Management: SHOP's management team is seasoned and experienced (6.9 years average tenure).
Experienced Board: SHOP's board of directors are considered experienced (5.9 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 6.2%.
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$144.416b
- Shares outstanding: 124.33m
- Website: https://www.shopify.com
Number of Employees
- Shopify Inc.
- 151 O'Connor Street
- Ground floor
- K2P 2L8
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company’s platform provides ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:50|
|End of Day Share Price||2021/04/16 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.