Shopify Inc. (SHOP) stock analysis
Close on Nov 11, 2026Market cap $192.04BP/E 100.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
Shopify passes 12 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 5/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 20.8%, above the 10% that usually covers the cost of capital.
No debt
Shopify has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 31.0% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 27.3% a year over the last three fiscal years.
What to watch
Return on equity under 15%
Return on equity was 15.5% over the last twelve months and averaged 5.7% over five years; we look for 15% on both.
Earnings growth not accelerating
Net income grew -17.8% over the last twelve months, against a 5-year average of 31.0% a year.
Gross margin slipping
Gross margin was 47.8% over the last twelve months, against 49.3% a year earlier.
No dividend
Shopify has not paid a dividend in the last twelve months.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 27.3% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew -17.8% over the last twelve months, against a 5-year average of 31.0% a year.
Growing faster than the industry
Revenue grew 32.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance issued
The latest outlook (fourth quarter of 2026 Stock-based compensation, Nov 3, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin slipping
Gross margin was 47.8% over the last twelve months, against 49.3% a year earlier.
Past performance5/6
Return on equity under 15%
Return on equity was 15.5% over the last twelve months and averaged 5.7% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 20.8%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Shopify's return on equity of 15.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings grew over 5 years
Net income grew 31.0% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 14.5% over the last twelve months, against a 5-year average of 7.3%.
Net margin above the industry
Shopify's net margin of 14.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health5/6
No debt
Shopify has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 5.35 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Shopify has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Shopify. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $1.40B
- Value traded per 1% price move
- $539.81M
Downside
High risk
- Typical loss in a bad month
- 29.0%
- Volatility (annualized)
- 60%
- Sharpe ratio, 1 year
- -0.17
- Beta to the S&P 500 (5Y)
- 2.61
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +30.1% | +27.3% | +31.6% | +49.6% | |
| Gross profit | +24.2% | +26.3% | +29.2% | +47.6% | |
| Operating income | +36.6% | – | +74.7% | – | |
| Net income | -39.0% | – | +31.0% | – | |
| EPS, diluted | -39.4% | – | +29.4% | – | |
| Free cash flow | +25.7% | – | +39.3% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -11.7% | 6.8% | 9.8% | |
| Return on assets | -9.6% | 5.7% | 8.5% | |
| Current ratio | 6.36 | 15.69 | 5.96 | |
| Interest coverage | – | 9.9× | – | |
| Inventory turnover | 173.6× | – | 255.4× | |
| Capex to revenue | 6.1% | 1.4% | 0.2% | |
| Diluted shares | 840M | 1.23B | 1.30B |
Where the cash went
Fiscal 2021 to 2025, five years combined
Shopify generated $5.26B from operations and spent $184.79M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.7% | 0.79× | 1.16× | 9.8% |
| FY2024 | 22.7% | 0.70× | 1.22× | 19.6% |
| FY2023 | 1.9% | 0.64× | 1.27× | 1.5% |
| FY2022 | -61.8% | 0.46× | 1.24× | -35.7% |
| FY2021 | 63.2% | 0.44× | 1.20× | 33.2% |
| FY2020 | 10.9% | 0.52× | 1.19× | 6.8% |
| FY2019 | -7.9% | 0.55× | 1.12× | -4.9% |
| FY2018 | -6.0% | 0.64× | 1.09× | -4.2% |
| FY2017 | -5.9% | 0.84× | 1.14× | -5.7% |
| FY2016 | -9.1% | 1.06× | 1.21× | -11.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$1.23B
- Cash generatingOperating cash flow above zero$2.03B
- Return on assets improvedROA up on the prior year17.9% → 8.8%
- Earnings backed by cashOperating cash flow above net income$2.03B vs $1.23B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose3.71 → 5.96
- No dilutionShare count did not rise1.30B → 1.30B
- Gross margin improvedGross margin up on the prior year50.36% → 48.07%
- More efficientAsset turnover rose0.79 → 0.83
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