About Shopify Inc.
Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.
Shopify Inc. (SHOP) is a Technology company in the Software - Application industry with a market capitalisation of $169.4B. The stock trades at 88.22x trailing earnings.
- Sector
- Technology
- Industry
- Software - Application
- Market cap
- $169.4B
- P/E ratio
- 88.22
- Forward P/E
- 53.09
- EPS (TTM)
- $1.48
- Revenue (TTM)
- $13.3B
- Free cash flow
- $1.6B
- Profit margin
- 14.5%
- Beta
- 2.62
- Shares outstanding
- 1.2B
Financial health: Strong9.4/10
7 strengths, 0 concerns. No red flags against these benchmarks.
- Current ratio: 5.96 (Strong, benchmark > 1.5) — Short-term assets cover 5.96x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 3 years.
- Return on equity: 15.5% (Strong, benchmark > 15%) — Earns 15.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 47.8% (Strong, benchmark > 40%) — Keeps 47.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 14.5% (Strong, benchmark > 10%) — Turns 14.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.0B (Strong, benchmark positive) — Generated $2.0B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 33.7% (Strong, benchmark > 10%) — Revenue changed 33.7% year on year, comfortably past the > 10% mark.
- Earnings growth: 68.1% (Strong, benchmark > 10%) — Earnings changed 68.1% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.73 (Watch, benchmark < 1) — At 1.73, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.