Stock Analysis
Shopify Inc. Class A subordinate voting sharesSHOP
P/E 113.13×· 5Y range 11.60–210.22×· top 14% of history
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsStrong Buy56 analystsP/E 113.1× sits at the 86th percentile of its 5.086926762491444-year history.
Cash covers 2779% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Financial Health75
- Profitability72
Risks
- Valuation10
- Growth50
Mixed fundamentals at a demanding price.
Market context
-4.8% today· Z 2.2σ· RVOL 1.5×
Bull Case
- ✓Altman Z 75.7 — safe-zone balance sheet
- ✓ROE 15.2% — efficient capital deployment
- ✓Revenue CAGR 25.8% — durable top-line growth
What's happening with SHOP
Profile
Strong financial health; valuation and moat lag behind.
How is each axis scored?
- Valuation10/100 · Weak
- P/E vs own history (86th pct)0/25
- FCF yield (1.1%)5/25
- P/S (16.4x)5/25
- EV/EBIT (115.6x)0/25
- Growth50/100 · Moderate
- Revenue CAGR (25.8%)25/25
- Net income CAGR (-19.4%)0/25
- EPS CAGR 5Y (-20.1%)0/25
- Fwd implied growth (75.7%)25/25
- Profitability72/100 · Moderate
- ROIC (18.4%)20/25
- ROE (15.2%)20/25
- Net margin (14.5%)20/25
- Operating margin (13.9%)12/25
- Financial Health75/100 · Strong
- Altman Z (75.66)25/25
- Current ratio (5.35)25/25
- Interest coverage (-0.3x)0/25
- Net cash / debt (Net cash)25/25
- Quality72/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.46)20/25
- FCF conversion (122%)25/25
- Margin stability (σ 9.0%)12/25
- Moat44/100 · Weak
- ROIC >12% years (2/5 yrs)6/25
- Median gross margin (49.8%)20/25
- FCF-positive years (4/5 yrs)18/25
- Worst-year net margin (worst -61.8%)0/25
Risk Flags
- ⚠Interest coverage -0.3× — thin debt cushion
- ⚠P/E 113.1× at top 14% of 5-year history
About Shopify Inc. Class A subordinate voting shares
Shopify offers an e-commerce platform primarily to small and medium-size businesses. Show more
The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.
Headquarters: OTTAWA · Employees: 7,600 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
10EP/E (TTM)113.0xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 11.6x–210.2x · 86th pct
P/FCF95.1xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.1%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -0.1%–1.9% · 61st pct
P/S (TTM)16.42xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 4.4x–188.9x · 73rd pct
EV/EBIT115.6xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 26.4x–9706.7x · 57th pct
EV/Sales16.7xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E64.3xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio17.18xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio3.13D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
72B+ROIC18.4%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE15.2%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA13.1%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin14.5%A
Grade A: HighNet Income / Revenue
Operating Margin13.9%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin47.8%C
Grade C: AverageGross Profit / Revenue
FCF Margin17.7%A
Grade A: HighFCF / Revenue
True FCF Margin14.1%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
50CRevenue CAGR25.8%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-19.4%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-20.1%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth75.7%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income25.0%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue3.6%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
75B+Altman Z-Score75.66A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio5.35xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio5.35xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-0.3xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.01xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt27.79xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
72B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.46A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion122.0%A
Grade A: StrongFCF / Net Income
Margin Stability9.0%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue0.2%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.90xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
44D+ROIC >12% Years2/5 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)49.8%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years4/5 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-61.8%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.50
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$3.84
Cash & short-term investments per share (Finnhub)
Book Value / Share$9.84
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$178.00M
Total debt obligations (short + long term)
Cash & Equiv.$4.95B
Cash and short-term investments
Net Debt$-4.77BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$12.68B
Shareholders' equity (book value)
Asset / Liability8.10xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$217.88B
Current Market Capitalization
Beta2.71D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Shopify Inc. Class A subordinate voting shares (SHOP)
SHOP is down 4.84% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Shopify Inc. Class A subordinate voting shares. Altman Z-Score of 75.66 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.46 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 26% annually — a strong growth profile.
- Shopify Inc. Class A subordinate voting shares converts about 18% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Interest coverage of -0.3× leaves little room for earnings shocks.
- Shopify Inc. Class A subordinate voting shares posted a net loss in 1 of 5 available completed fiscal years (2021–2025).
- At a valuation score of 10/100, SHOP trades at a premium to its historical multiples (P/E 113.0).
See how SHOP ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all SHOP moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 168.56 | -5.38% | -2.39 |
| Oct 16 | After-hours | 169.34 | -4.94% | -2.23 |
| Sep 22 | Regular | 148.66 | +7.79% | 2.23 |
| Sep 22 | After-hours | 147.70 | +7.09% | 2.04 |
| Sep 21 | Regular | 137.52 | +7.02% | 2.47 |
Frequently Asked Questions about SHOP
What is the current Shopify Inc. Class A subordinate voting shares (SHOP) stock price?
SHOP is trading at $169.52 at the last market close, down 4.84% on the session. PreMarketPrice tracks SHOP pre-market, intraday and after-hours prices.
Is SHOP stock a buy right now?
PreMarketPrice's quantitative model rates Shopify Inc. Class A subordinate voting shares's financial health at 75/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is SHOP stock overvalued?
Shopify Inc. Class A subordinate voting shares trades at a trailing P/E of 113.0 and our valuation score rates it 10/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Shopify Inc. Class A subordinate voting shares report earnings?
No confirmed earnings date is currently scheduled for SHOP. The Earnings section lists recent reports and updates as dates are announced.
What sector does Shopify Inc. Class A subordinate voting shares operate in?
Shopify Inc. Class A subordinate voting shares operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does Shopify Inc. Class A subordinate voting shares do?
Shopify offers an e-commerce platform primarily to small and medium-size businesses.
About Shopify Inc. Class A subordinate voting shares (SHOP) Stock
Shopify Inc. Class A subordinate voting shares (SHOP) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, Shopify Inc. Class A subordinate voting shares is trading at $169.52, down 4.84% on the day with a market capitalization of $217.9 billion. The financial health score for SHOP is 75/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for SHOP stock.
SHOP Stock Analysis & Key Metrics
On PreMarketPrice, you can track Shopify Inc. Class A subordinate voting shares (SHOP) across multiple dimensions:
- Pre-market price & movement: Real-time SHOP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for SHOP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Shopify Inc. Class A subordinate voting shares across multiple reporting periods.
- Financial health score: A composite score of 75/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for SHOP.
- Sector peers: Compare SHOP against 6 other technology stocks on key financial metrics.
Is SHOP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Shopify Inc. Class A subordinate voting shares (SHOP) as an investment. The financial health score of 75/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Shopify Inc. Class A subordinate voting shares (SHOP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.