SHOP Stock Overview
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$1,428.12|
|52 Week High||US$1,762.92|
|52 Week Low||US$1,005.14|
|1 Month Change||-6.54%|
|3 Month Change||-7.07%|
|1 Year Change||31.70%|
|3 Year Change||842.65%|
|5 Year Change||3,297.05%|
|Change since IPO||5,461.22%|
Recent News & Updates
Is There Now An Opportunity In Shopify Inc. (NYSE:SHOP)?
Shopify Inc. ( NYSE:SHOP ) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE...
Shopify Will Likely Underperform The Market In The Next Decade
Shopify business has strong growth potential as it has huge total addressable market opportunity. The management is actively expanding the service base via new co-operations. Our historic and relative valuation analyses indicate that the stock is overvalued. The DCF model indicates an intrinsic value of $889.
Shopify Stock Forecast: Will Focus On B2B E-Commerce Impact Business Outlook?
Shopify Inc. is one of the leading D2C e-commerce providers in the market. The company recently expanded its offerings to offer B2B business solutions as well. The B2B e-commerce market is projected to grow to $25.65T by 2028, at a CAGR of 18.7%. We discuss Shopify's prospects with its B2B pivot.
Shopify’s (NYSE:SHOP) P/E Looks Like set to Rise to Unsustainable levels.
Shopify Inc’s (NYSE:SHOP) stock price rocketed to a new all time high on Friday. The rally was seemingly triggered by positive comments about the company during Affirm’s (Nasdaq: AFRM) earnings call, as well as derivative activity. Shopify is benefitting from significant tailwinds and operational performance continues to impress. But investors should exercise caution at the current valuation.
|SHOP||US IT||US Market|
Return vs Industry: SHOP exceeded the US IT industry which returned -2.4% over the past year.
Return vs Market: SHOP exceeded the US Market which returned 16.5% over the past year.
|SHOP Average Weekly Movement||6.6%|
|IT Industry Average Movement||7.3%|
|Market Average Movement||6.2%|
|10% most volatile stocks in US Market||14.8%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: SHOP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: SHOP's weekly volatility (7%) has been stable over the past year.
About the Company
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 merchants to run their business in various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, and access financing. It also sells custom themes and apps, and registration of domain names.
Shopify Fundamentals Summary
|SHOP fundamental statistics|
Is SHOP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SHOP income statement (TTM)|
|Cost of Revenue||US$1.92b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||27.15|
|Net Profit Margin||81.00%|
How did SHOP perform over the long term?See historical performance and comparison
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 ($1428.12) is trading above our estimate of fair value ($664.83)
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 (52.6x) compared to the US IT industry average (34.9x).
PE vs Market: SHOP is poor value based on its PE Ratio (52.6x) compared to the US market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: SHOP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SHOP is overvalued based on its PB Ratio (15.8x) compared to the US IT industry average (4.5x).
How is Shopify forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHOP's earnings are forecast to decline over the next 3 years (-28.9% per year).
Earnings vs Market: SHOP's earnings are forecast to decline over the next 3 years (-28.9% per year).
High Growth Earnings: SHOP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SHOP's revenue (27.1% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: SHOP's revenue (27.1% 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 (8.2%).
How has Shopify performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SHOP has a high level of non-cash earnings.
Growing Profit Margin: SHOP's current net profit margins (81%) are higher than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: SHOP has become profitable over the past 5 years, growing earnings by 88.2% per year.
Accelerating Growth: SHOP's earnings growth over the past year (1636.1%) exceeds its 5-year average (88.2% per year).
Earnings vs Industry: SHOP earnings growth over the past year (1636.1%) exceeded the IT industry 35.8%.
Return on Equity
High ROE: SHOP's Return on Equity (30%) is considered high.
How is Shopify's financial position?
Financial Position Analysis
Short Term Liabilities: SHOP's short term assets ($8.3B) exceed its short term liabilities ($596.6M).
Long Term Liabilities: SHOP's short term assets ($8.3B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: SHOP has more cash than its total debt.
Reducing Debt: Insufficient data to determine if SHOP's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SHOP's debt is well covered by operating cash flow (53.8%).
Interest Coverage: SHOP earns more interest than it pays, so coverage of interest payments is not a concern.
What is Shopify current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SHOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SHOP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SHOP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SHOP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SHOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tobi Lütke (40 yo)
Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. Mr. Lütke has been the Chief Executive Officer of Shopify Inc. since April 2008. Prior to that, h...
CEO Compensation Analysis
Compensation vs Market: Tobi's total compensation ($USD15.11M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Tobi's compensation has increased by more than 20% in the past year.
Experienced Management: SHOP's management team is considered experienced (2.5 years average tenure).
Experienced Board: SHOP's board of directors are considered experienced (8.9 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 3%.
Shopify Inc.'s 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$179.372b
- Shares outstanding: 125.60m
- Website: https://www.shopify.com
Number of Employees
- Shopify Inc.
- 151 O'Connor Street
- Ground floor
- K2P 2L8
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/07 00:32|
|End of Day Share Price||2021/12/06 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.