StockCV
Shopify Inc. Class A subordinate voting shares logo

Shopify Inc.

Services-Prepackaged Software

$170.20
+3.43%
Market cap $219B

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments.

It is a $219B technology company. Revenue grew 32.5% over the last year, it keeps 15¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 114.0× earnings — near the highest of its own history.

Location
Ottawa
Employees
7 600
Sector
Technology
Founded
2006

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation10Growth50Profitability72Health50Quality72Moat44

Valuation and Moat lag behind.

Valuation10
  • P/E vs own history93th pct · 0/25
  • FCF yield1.1% · 5/25
  • P/S16.6x · 5/25
  • EV/EBITDA118.1x · 0/25
Growth50
  • Revenue CAGR25.8% · 25/25
  • Net income CAGR-19.4% · 0/25
  • EPS CAGR ~5Y-20.1% · 0/25
  • Fwd implied growth77.2% · 25/25
Profitability72
  • ROIC15.4% · 20/25
  • ROE15.1% · 20/25
  • Net margin14.5% · 20/25
  • Operating margin13.9% · 12/25
Health50
  • Altman Zn/a · 0/25
  • Current ratio5.35 · 25/25
  • Interest coverage-0.3x · 0/25
  • Net cash / debtNet cash · 25/25
Quality72
  • Piotroski F6/9 · 15/25
  • Beneish M-2.46 · 20/25
  • FCF conversion122% · 25/25
  • Margin stabilityσ 9.0% · 12/25
Moat44
  • ROIC >12% years2/5 yrs · 6/25
  • Median gross margin49.8% · 20/25
  • FCF-positive years4/5 yrs · 18/25
  • Worst-year net marginworst -61.8% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2025Financial
    Revenue crossed $10B
    $11.6B for the year
  2. FY2021Financial
    First recorded profitable year
    $2.91B net income
  3. FY2021Financial
    Revenue already above $1B
    $4.61B in first reported year
  4. FY2021Financial
    Best year on record
    $2.91B net income
  5. 2019Product
    Shopify announced the launch of Shopify Studios, a full-service television and film content and…
  6. 2017Product
    Shopify introduced its Chip & Swipe Reader, a Bluetooth enabled debit and credit card reader for…
  7. Oct 3, 2016Acquisition
    Shopify acquired Boltmade
  8. 2016Product
    Shopify announced Shopify Capital, a cash advance product
  9. May 21, 2015IPO
    Shopify went public via an initial public offering on May 21, 2015, raising more than $131 million
  10. 2014Product
    Shopify released "Shopify Plus" for large e-commerce businesses seeking access to additional…
  11. 2013Product
    Shopify launched Shopify Payments in partnership with Stripe
  12. 2009Product
    Shopify launched an application programming interface (API) platform and App Store
  13. 2006Founded
    Shopify was founded in 2006 by friends Tobias Lütke, Daniel Weinand and Scott Lake after launching Snowdevil, an…
  14. 2006Product
    The Snowdevil founders launched the platform as Shopify in June 2006

Achievements

Verifiable track record, straight from the reported numbers.

#27 largest of 220 Technology companies by market cap
$10 000 invested in 2021 would be worth ~$11 728 today — price return only
$11.6B revenue in FY2025
Revenue up 32.5% year over year
Profitable 3 years in a row
Positive free cash flow 3 years in a row
7 600 employees
ROIC of 15.4%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (47.8%)
  • Revenue growing 32.5% year over year
  • Strong cash conversion — FCF is 17.7% of revenue
  • Net cash position after subtracting debt from cash
  • High returns on invested capital (ROIC 15.4%)

Watch-outs

  • Thin interest coverage (-0.3×)
  • Loss-making in 1 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

7 of 10 checks passed
  • Revenue growing+32.5% YoY
  • Profitable$1.93B TTM
  • Profit growing+29.5% YoY
  • Generates cash$2.35B TTM
  • Debt under controlmore cash than debt
  • Established company$219B market cap
  • Not printing shares+3.6% shares over ~5y
  • Proven track record4/5 profitable years
  • Financially stablehealth score 25/100
  • Pays a dividendno data
  • Valuation not extremeP/E 114.0
Peer comparisonShopify Inc. vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
SHOP this company$219.0B114.0+32.5%14.5%Strained
NVDA Nvidia Corp$5.5T28.6+83.4%63.7%Mixed
AAPL Apple Inc.$4.9T38.1+14.2%27.6%Strong
GOOGL Alphabet Inc.$4.3T17.6+20.1%54.8%Mixed
MSFT Microsoft Corp$4.0T29.7+17.8%40.3%Strong
SPCX Space Exploration Technologies Corp.$2.1T—+33.2%-34.0%Strained
META Meta Platforms, Inc.$1.8T26.9+27.7%29.8%Mixed

Head-to-head: SHOP vs NVDA · SHOP vs AAPL · SHOP vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 11Buy 32Hold 12Strong sell 1

Appendix · Financial records

The full statements behind this CV, FY2021–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of SHOP on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $170.20 · market cap $219B.