SHOP Stock Overview
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$26.94|
|52 Week High||US$176.29|
|52 Week Low||US$26.38|
|1 Month Change||-10.53%|
|3 Month Change||-14.23%|
|1 Year Change||-80.06%|
|3 Year Change||-17.67%|
|5 Year Change||175.12%|
|Change since IPO||949.07%|
Recent News & Updates
Shopify: Down 80%, One Of My Largest Positions
Summary Shopify stock sunk 15% after releasing second quarter earnings results and has kept sinking. Management admits that it has underestimated the post-pandemic reversion to the mean. The company continues to expect no profits this year. Shopify remains a founder-led compounder and is trading at compelling valuations. Shopify (SHOP) sunk 15% after releasing second quarter earnings and has since kept sinking. The stock has plunged amidst the bursting of the tech bubble but the crash is far too overdone. SHOP continues to invest aggressively to support its long term growth outlook, but that will have the effect of wiping out operating profits this year. This is a market that has rewarded companies generating immediate profits with little patience to look over the long term. SHOP is trading at compelling valuations while also representing what I view to be a generational compounder. SHOP Stock Price After peaking at $176 per share (split-adjusted), SHOP is now trading just around $27 per share. Data by YCharts I last covered the stock in June where I discussed the ramifications of the stock split. The stock split has since been completed in late June but that has done little to change the negative sentiment regarding the stock. SHOP Stock Key Metrics SHOP generated 16% revenue growth in the quarter, with GMV growing by only 11%. 2022 Q2 Presentation Management noted that they had previously misassessed just how much the pandemic positively impacted their business. On the conference call, they stated: We expect 2022 will be different, more of a transition year in which e-commerce is largely reset to the pre-COVID trend line and is now pressured by persistent high inflation. The net result is that SHOP made the difficult decision to lay off 10% of its workforce to rectify those missed projections. Management stated: For the remainder of 2022, we expect a slow hiring to only the most strategic, and with the addition of Deliverr, exit this year with only a modest increase in total headcount versus the beginning of 2022. That does not mean that the company will not continue investing aggressively in growth. In fact, SHOP is still guiding for the full-year to see no operating income due to heavy reinvestment - the company had previously generated $269 million of operating income in 2021. Those investments include improving its B2B software - recall that SHOP can be considered an enabler of independent e-commerce. 2022 Q2 Presentation SHOP is also investing in its fulfillment network as it seeks to extend the reach of its 2-day shipping capabilities. 2022 Q2 Presentation
Shopify: The Central Operating System For Business
Summary Shopify is a mission-driven and founder-led company that has beat the stock market since IPO until 2022 started. The current headwinds Shopify is facing are partially self-inflicted because it is investing in growth and playing the long game. The company has an end-to-end business model and ecosystem that merchants can take advantage of to scale and be successful. Shopify’s leadership is aligned with its shareholders' and employees' best interests for success. Thesis I believe Shopify (SHOP) will be a market beating stock over the next five years because of their excellent leadership, business model, and their ecosystem of commerce. In this article we will cover the current state of the business, the risks and valuation, the execution of leadership, and deep dive into their business model which can be the central operating system for merchants, and why that has me bullish on the future of Shopify stock. Current State of the Business Shopify was one of the darlings of the stock market for the past few years until 2022 started. From the beginning of 2018 until the beginning of 2022, Shopify was one of the best returning growth stocks with over 17x in gains. So much has changed in such a short amount of time, with the market cap valuation dropping 75% in just nine short months. So, is this fall from grace warranted? And has the thesis for this stock completely broken, causing the share price to fall off a cliff? Data by YCharts It is true the company went from producing earnings of nearly $880M to -$1.2B a year later. So how did Shopify generate a -$2B swing in earnings in one year? It's a simple answer, Shopify overestimated the growth rates of e-commerce post COVID by hiring too many employees, a war in Ukraine and Russia began, and global inflation incurred. Revenue growth decelerating in 2022 and macro-economic inflation forced the company to have to reduce their workforce by 10%. It is never a pleasant company experience having to let go of employees, but it was fiscally responsible considering they over-hired in anticipation of continued exponential e-commerce growth in 2022. The other cause for the loss in earnings was due to this year, being a year of investment in expansion and growth for the long term. The company committed to expanding their flywheel in their business model by making the biggest acquisition of their history by purchasing global logistics company Deliverr for $2.1B. President of Shopify Harley Finkelstein will share later the value this acquisition adds for the company and the problem it solves for merchants on and off the Shopify platform. So, the question is has Shopify stock been de-risked since going from one of the largest stocks in the market to 75% smaller in market cap size? And can Shopify recover and regain its dominance? The Risks and Valuation The valuation for Shopify has come down significantly with a price multiple of 38 price-to-sales ratio in January 2022 to now a more reasonable 8.5. However, the current stock market is a market that is not in favor of non-profitable, decelerating growth retail companies. In addition to the state of the stock market, inflation has been impacting the spend of the consumer in the United States and globally. This consequently impacts Shopify and the entrepreneurs and SMB merchants utilizing their platform. So, is this company still overvalued against its peers? And is growth and earnings not able to be returned to a level that Shopify experienced before 2022? Data by YCharts If you compare Shopify stock to its peers on a purely price-to-sales ratio it appears more expensive. However, it is more affordable than the stock has ever been, has a much more complete ecosystem and end-to-end business model, and with a much stronger balance sheet. If you are looking for a stock for the short-term beware this is a very volatile one to consider. But for the long-term I fully believe Shopify is primed for expansion and delivering market beating returns for shareholders consistently. Remember, the wise quote from the great investor Benjamin Graham, "In the short run, the market is a voting machine but in the long run, it is a weighing machine." I believe due to the exceptional forward-thinking and strategic leadership of CEO Tobi Lütke and President Harley Finkelstein they will take this company to new all-time highs in the long-term. The Execution of Leadership: Shopify is a founder-led company with Tobi at the helm and Harley has been with the company for nearly 13 years himself. I consider them to be one of the best one-two punches in leadership in the software or e-commerce space. They lead a very mission driven company that has always been extremely aspirational in changing how entrepreneurship and commerce is done. The company's mission statement supports their customer audience's expectations of creating a successful business. Shopify's mission statement reads, "Make commerce better for everyone", and they elaborate on this as follows, "We help people achieve independence by making it easier to start, run, and grow a business. We believe the future of commerce has more voices, not fewer, so we're reducing the barriers to business ownership to make commerce better for everyone." This mission statement is simple, focused, and is something that employees can understand and get behind. The other thing their mission statement creates is the expectation for merchants if they build their business on the Shopify platform, they can focus on what is important and they will be successful. Tobi and Harley have helped build this company around this mission and have been executing to it since going IPO in 2015. Having a well-thought-out company vision and mission statement that aligns to that vision, matters for success. Employees find meaning in their work when they can understand how their work contributes to the larger goal or mission statement. It leads to improved employee retention, productivity, sustainable talent growth within the organization, and attracts new talent. Tobi is fully aligned to shareholders' interest as he owns 6.2% of all shares of the company and is the biggest shareholder overall and has 40% of voting rights in the company. This allows him and Harley to continue to drive the company to their mission and for running the company towards long-term goals. Tobi and the leadership team at Shopify want to give employees that same chance to be even more aligned with the long-term success of the company and merchants, by instituting a new compensation system called Flex Comp, where employees can choose how they are compensated via cash, restricted stock units (RSUs), or options. The ability to withdraw the stock is instantaneously, opposed to waiting a full year and this will give flexibility for employees who may need to save for a large purchase like a house for example, opposed to forcing RSUs as the only additional compensation available. Employees will also receive a 5% bonus if they allocate more money to equity than is required under the minimum 'guard rails' in the program. Shopify Q2 Investor Presentation Now it takes more than just an amazing CEO and President for a company to be a long term-success. It takes great leadership and execution from other parts of the business as well. This leads to the concerns by investors and the media around Shopify since, CFO Amy Shapero is stepping down after nearly 5 years with Shopify and COO Toby Shannan who was with the company for the last 13yrs will not be in role anymore as of a few weeks ago. However, investors need to always examine any news around their holdings with a frame of perspective, "understand the why", and examine it in context. Toby Shannan had been with the company for a very long time and is retiring and will be joining the Board of Directors for Shopify on January 1, 2023. The backfill for Toby is VP of Merchant Services, Kaz Nejatian who has been with Shopify for the last three years. Kaz has also worked previously at Facebook as a Product lead for Payment Platform and Billing teams, as well as creating his own company Kash, which was an alternative payment company which used consumer data to underwrite the risk of transactions, which he later sold that off to a publicly traded financial services company. The CFO replacement for Amy Shapero wasn't a complete outsider as it was Jeff Hoffmeister, who was the banker during the IPO of Shopify. He has helped the company do financing in the past and been and advisor of sorts to Tobi and Harley for years. He brings additional skillsets to the leadership group with his long-standing banking background. So I believe these leadership changes are being over exaggerated by media, as it is not like Toby is leaving the company. Now, that would be a COMPLETELY different story and maybe even a thesis changer. Creating the Central Operating System for Business Tobi and Harley understand that the world is operating in a challenging time right now. They also understand the e-commerce market has gone through a whiplash since pre-COVID and maybe misunderstood. Shopify believes by providing an easy access point of entry into starting your own business and ecosystem of resources, it will level the playing field for all small businesses and all brands. The company believes in a top of the funnel business approach that leads to the most successful merchants becoming large brands and more than making up for any merchants that were to leave the platform.
Shopify hires new finance chief
Shopify (NYSE:SHOP) has made leadership changes, appointing Jeff Hoffmeister as its new CFO and promoting Kaz Nejatian to COO role. Hoffmeister, who currently serves as Managing Director for Morgan Stanley (MS) in their Technology Investment Banking Group, will succeed Amy Shapero at Shopify (SHOP). Shapero will step down following the company's Q3/2022 earnings release scheduled on Oct 27, 2022. Nejatian, who currently serves as Vice President of Product, will take up the COO role, effective immediately. He will succeed Toby Shannan, who will transition to the position of Special Advisor and board member.
Shopify: Simplifying Logistics
Summary Legacy freight processes are often designed for big businesses with large volumes and consistent demand. Shopify and Deliverr are using software and machine learning to unpack, scan and inspect inventory. GMV was just $15.4 billion in 2016 and it grew explosively over the next 5 years to reach $175.4 billion in 2021. Introduction My thesis is that Shopify (SHOP) is helping merchants take some of the complexity out of freight, distribution, fulfillment and delivery. Simplifying Logistics Using their merchant-centric focus, Shopify is implementing an asset-light approach to help simplify logistics - especially for small and medium sized merchants. Freight, distribution and fulfillment/delivery are key steps and Shopify is making progress across the board. In the 1Q22 call, President Harley Finkelstein noted that supply chain management and fulfillment are challenging for merchants. He said Shopify is creating an end-to-end logistics platform that will simplify the process: To actually get an order to a buyer, they have to fumble through a maze of freight providers, 3PLs and middle and last-mile carriers. We know merchants trust Shopify to offer simple, reliable, cost-effective solutions to their biggest problems. That's why we're creating the world's most merchant-obsessed, end-to-end software and logistics platform, fully integrated into the Shopify ecosystem. We are simplifying logistics across every stage of a merchant supply chain, from inventory inbounding to inventory distribution across all merchant channels, to fast and affordable D2C order fulfillment and returns. President Finkelstein went on in the 1Q22 call to announce the acquisition of Deliverr which is accelerating Shopify’s path to an end-to-end merchant supply solution. The 2Q22 presentation explains the ways Shopify is simplifying logistics: simplifying logistics (2Q22 presentation) Freight On the freight side, Shopify has invested in Flexport, a company that helps merchants with inventory inbounding. Dave Clark left a senior management position at Amazon (AMZN) and he’ll soon be the CEO of Flexport starting September 1st. Shopify President Finkelstein breaks down freight in the 2Q22 call, saying merchants need to work with upwards of 10 vendors in a system that is often set up at the container level. Shopify and Flexport have a pilot program together where merchants can ship at the pallet level instead of the container level. Speeds can be up to 50% faster with a lower than average cost per pallet. Flexport is shown as a key part of inventory inbounding in Shopify’s 2Q22 presentation: flexport (2Q22 presentation) Distribution President Finkelstein covers distribution in the 2Q22 call. As inventory arrives in port, independent merchants can have a hard time preparing and routing it for distribution across multiple channels. Shopify closed their acquisition of Deliverr in July in order to accelerate the simplification of the distribution process, starting in Atlanta: The first example of this will be at our Atlanta Hub warehouse. Using software and machine learning, these SFN hubs, leveraging Deliverr's capabilities, will unpack, scan and inspect all inventory, then compare against metadata in Shopify's back office to route the goods to a merchants' various distribution channels as well as forward-position inventory into SFN-spoke direct-to-consumer fulfillment centers based on expected buyer demand. With this software-based approach, Deliverr is helping us expand 2-day delivery across SFN. At the August Canaccord Growth Conference, Senior Manager Ana Raman explains that Deliverr is acting as an accelerant in various channels such as wholesale and brick-and-mortar: So Deliverr is really helping to accelerate a roadmap that we already had planned. Now they're just helping us get there faster. So things like distributing product through channels, so multiple channels. So whether that is B2B wholesale, whether that is brick-and-mortar, whether that is any online channel from marketplaces to social media or the merchant's online store. With their smart inventory placement, we're going to be able to really effectively allocate inventory through the channels The 2Q22 presentation shows how Deliverr helps with distribution: Deliverr (2Q22 presentation) Fulfillment and Delivery In the 2Q22 call, Shopify President Finkelstein explains that the last step in logistics is 2-day fulfillment and delivery. It is the most critical step and in the past it has been hard for merchants to get this right on their own. The numbers show that conversions increase when merchants can promise a delivery window - even if it is up to 3 or 4 days: By leveraging Deliverr software in SFN hubs and SFN Spoke partner warehouses all equipped with 6 River Systems technology, we can forward position merchants inventory to support timely fulfillment with a minimal inventory commitment for merchants. We've also continued our early access to Shop Promise, which lets merchants offer 2-day delivery promises across online storefronts and channels like Google, Facebook and Instagram. Deliverr data suggests that as Shop Promise reaches scale, many merchants will be able to increase average conversion rates by more than 30%. The 2Q22 presentation shows that the “Shop Promise” badge helps merchants give customers peace of mind with respect to delivery timelines: fulfillment (2Q22 presentation) Buy With Prime Much of the information on Amazon’s Buy with Prime program emphasizes the fulfillment and delivery step but we’ve seen that freight and distribution are additional considerations with logistics. In the same way that Amazon third-party (“3P”) is one of many sales channels, I believe Buy with Prime will be one of many logistics channels. A July 18th interview from ModernRetail shines some light on what we can expect from Shopify and Amazon in the coming years. Many investors see Amazon’s Buy with Prime offering as a threat but Shopify logistics leader Aaron Brown’s thoughts on the subject are optimistic: We’re also working with Amazon, every week, right now to integrate the new platform and having super positive discussions. We’re really bullish on the partnership between Amazon and Shopify. The interesting thing with fulfillment is we’re solving for fundamentally different problems. Shopify is trying to provide an end-to-end platform helping a merchant manage their entire supply chain across all channels. One of those channels can be fulfillment by Amazon. If a merchant wants to take all of their inventory in a Shopify SFN cross dock and deploy a quarter of that in FBA, we help them do that. We’re also trying to build a fulfillment solution that’s super integrated into Amazon’s online store, its channels, and very integrated with Shop Promise to help build a really compelling solution. And so we’re really excited about Amazon and the infrastructure they’re creating for independent retailers. Senior Shopify manager Ana Raman answers a question about how significant a threat Buy with Prime is to SFN at the August Canaccord Growth Conference mentioned earlier. The point is made that it is great for merchants if Amazon is coming over their walled gardens and helping independent merchants. Still, Amazon is customer-focused while Shopify is merchant-focused. Amazon is not as good as Shopify in terms of letting merchants own their buyers, channels, data and brand: But we also need to think of this holistically in terms of SFN fulfillment being one piece of the much larger commerce puzzle. And because we are fueling the firewheel for - flywheel from different perspectives, whether that is fulfillment, whether that is finding new buyers or helping them manage their business from their back, and the superpower of fulfillment is tied into the network effects into that flywheel. And so that is an area we're continuing to work on, so that merchants have an end to end commerce experience. We are not just focused on fulfillment. And that is a key area that I hope that investors can take away is that it's really worthwhile to look at Shopify from a much more holistic, the whole is greater than the sum of its parts perspective. Valuation Shopify’s 2021 40-F shows 64.5% of revenue coming from the U.S. and eMarketer shows that in 2021, only 15% of total retail in the U.S. was done online. Shopify will benefit in the coming years as the U.S. increases this percentage to be more like the UK where 28.5% or total retail was online per eMarketer. Commerce keeps moving online in the U.S. and around the world but this doesn’t benefit all companies equally. In the 3Q21 BigCommerce (BIGC) call, CEO Brent Bellm answered a question about the companies they’re displacing. BigCommerce, Shopify and Salesforce (CRM) are all taking customers from on-premise Magento (ADBE) and around 500 other platforms: And the easy thing to say is Magento is by far the biggest donor platform to us. But in aggregate, they're probably - I mean, I don't have the specific figure, they're probably no more than 20% of the mid-market and above migration, an awful lot of custom sites and then a very long tail. I mean we get sites migrating from every other platform that you can imagine, big, small, old, really old. It's really all of them. The point is that as you look forward, SaaS is clearly the future for most merchants. There are 3 leading SaaS platforms. You know those 3: it's us, Shopify and at the high end of the market, Salesforce. And all 3 of us are taking share from the rest of them in addition to competing for net new builds.
|SHOP||US IT||US Market|
Return vs Industry: SHOP underperformed the US IT industry which returned -39.1% over the past year.
Return vs Market: SHOP underperformed the US Market which returned -23.2% over the past year.
|SHOP Average Weekly Movement||11.8%|
|IT Industry Average Movement||8.0%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: SHOP is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: SHOP's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through 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, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital.
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$2.41b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-1.50|
|Net Profit Margin||-38.01%|
How did SHOP perform over the long term?See historical performance and comparison
Is SHOP undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 1/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for SHOP?
Other financial metrics that can be useful for relative valuation.
|What is SHOP's n/a Ratio?|
Price to Sales Ratio vs Peers
How does SHOP's PS Ratio compare to its peers?
|SHOP PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
BIGC BigCommerce Holdings
Price-To-Sales vs Peers: SHOP is expensive based on its Price-To-Sales Ratio (6.8x) compared to the peer average (3.9x).
Price to Earnings Ratio vs Industry
How does SHOP's PE Ratio compare vs other companies in the US IT Industry?
Price-To-Sales vs Industry: SHOP is expensive based on its Price-To-Sales Ratio (6.8x) compared to the US IT industry average (2.4x)
Price to Sales Ratio vs Fair Ratio
What is SHOP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||6.8x|
|Fair PS Ratio||10.1x|
Price-To-Sales vs Fair Ratio: SHOP is good value based on its Price-To-Sales Ratio (6.8x) compared to the estimated Fair Price-To-Sales Ratio (10.1x).
Share Price vs Fair Value
What is the Fair Price of SHOP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: SHOP ($26.94) is trading above our estimate of fair value ($12.87)
Significantly Below Fair Value: SHOP is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Shopify forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHOP is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: SHOP is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: SHOP is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: SHOP's revenue (20.6% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: SHOP's revenue (20.6% 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 (1%).
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How has Shopify performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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, but has reduced losses over the past 5 years at a rate of 44.7% 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 (19.2%).
Return on Equity
High ROE: SHOP has a negative Return on Equity (-21.81%), as it is currently unprofitable.
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How is Shopify's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: SHOP's short term assets ($7.9B) exceed its short term liabilities ($703.2M).
Long Term Liabilities: SHOP's short term assets ($7.9B) exceed its long term liabilities ($1.3B).
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 not well covered by operating cash flow (13.7%).
Interest Coverage: Insufficient data to determine if SHOP's interest payments on its debt are well covered by EBIT.
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What is Shopify current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Shopify Dividend Yield vs Market|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (IT)||1.6%|
|Analyst forecast in 3 Years (Shopify)||0%|
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as SHOP has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tobi Lütke (41 yo)
Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. He serves as Director at Coinbase, Inc. since 2022. Mr. Lütke has been the Chief Executive Office...
CEO Compensation Analysis
|Tobi Lütke's Compensation vs Shopify Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$20m||US$1|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$15m||US$105k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$11m||US$616k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$9m||US$586k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$8m||US$638k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$447k||US$447k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$311k||US$311k|
Compensation vs Market: Tobi's total compensation ($USD20.00M) is above average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Tobi's compensation has increased whilst the company is unprofitable.
Experienced Management: SHOP's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Experienced Board: SHOP's board of directors are considered experienced (7.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|10 May 22||BuyUS$999,720||Toby Shannan||Individual||29,590||US$33.79|
|10 May 22||BuyUS$10,006,323||Tobias Lütke||Individual||296,170||US$33.79|
|10 May 22||BuyUS$49,811||Amy Shapero||Individual||1,470||US$33.88|
|10 May 22||BuyUS$999,720||Harley Finkelstein||Individual||29,590||US$33.79|
|10 May 22||BuyUS$49,765||Jessica Hertz||Individual||1,470||US$33.85|
|03 Mar 22||SellUS$207,214||Toby Shannan||Individual||3,200||US$65.38|
|03 Mar 22||SellUS$461,052||Amy Shapero||Individual||7,120||US$65.38|
|03 Mar 22||SellUS$427,380||Harley Finkelstein||Individual||6,600||US$65.38|
|26 Nov 21||SellUS$836,361||Harley Finkelstein||Individual||5,100||US$163.99|
|17 Nov 21||SellUS$329,938||Colleen Johnston||Individual||2,000||US$164.97|
|15 Nov 21||SellUS$814,976||Toby Shannan||Individual||4,860||US$167.69|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
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
- Implied Market Cap: US$34.250b
- Shares outstanding: 1.27b
- Website: https://www.shopify.com
Number of Employees
- Shopify Inc.
- 151 O'Connor Street
- Ground floor
- K2P 2L8
|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|
|SHOPD||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 107 REPR 1 COM||AR||USD||Mar 2021|
|SHOP||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 107 REPR 1 COM||AR||ARS||Mar 2021|
|S2HO34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 120 REPR 1 COM||BR||BRL||Apr 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 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.