Shopify Inc.
Shopify Inc. Fundamental Analysis
Shopify Inc. (307.F) shows moderate financial fundamentals with a PE ratio of 96.09, profit margin of 10.95%, and ROE of 10.71%. The company generates $12.3B in annual revenue with strong year-over-year growth of 30.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 307.F's fundamental strength across five key dimensions:
Efficiency Score
Weak307.F struggles to generate sufficient returns from assets.
Valuation Score
Moderate307.F shows balanced valuation metrics.
Growth Score
Moderate307.F shows steady but slowing expansion.
Financial Health Score
Excellent307.F maintains a strong and stable balance sheet.
Profitability Score
Weak307.F struggles to sustain strong margins.
Key Financial Metrics
Is 307.F Expensive or Cheap?
P/E Ratio
307.F trades at 96.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 307.F's PEG of -5.07 indicates potential undervaluation.
Price to Book
The market values Shopify Inc. at 10.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 67.07 times EBITDA. This signals the market has high growth expectations.
How Well Does 307.F Make Money?
Net Profit Margin
For every $100 in sales, Shopify Inc. keeps $10.95 as profit after all expenses.
Operating Margin
Core operations generate 15.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.71 in profit for every $100 of shareholder equity.
ROA
Shopify Inc. generates $9.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shopify Inc. produces operating cash flow of $2.14B, showing steady but balanced cash generation.
Free Cash Flow
Shopify Inc. generates strong free cash flow of $2.11B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.63 in free cash annually.
FCF Yield
307.F converts 1.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
96.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How 307.F Stacks Against Its Sector Peers
| Metric | 307.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 96.09 | 37.39 | Worse (Expensive) |
| ROE | 10.71% | 986.00% | Weak |
| Net Margin | 10.95% | 5872992870.00% | Weak |
| Debt/Equity | 0.01 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 6.20 | 5.10 | Strong Liquidity |
| ROA | 9.59% | -293612.00% (disorted) | Weak |
307.F outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shopify Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
263.11%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
254.65%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
340.37%
Industry Style: Growth, Innovation, High Beta
High Growth