SHOPIFY INC. (SHOP) Factsheet
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SHOPIFY INC. (SHOP) Stock Analysis
Analysis from 10-Q filed 2026-11-03. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 13.4%. FCF margin 18.8%. Source: 10-Q filed 2026-11-03.
| Metric | Value | Context |
|---|---|---|
| ROIC | 13.4% | Solid returns |
| FCF Margin | 18.8% | Strong cash generation |
ROIC 13.4% — Top 25% of sector peers. FCF margin 18.8% — Top 50%.
Explore SHOPIFY INC.: Earnings History | Overview
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SHOP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: SHOPIFY INC. earns 13.4% ROIC, Top 25% in Technology
ROIC TTM 13.4%, sector median 4.4%, Top 25%. DuPont: NOPAT margin 12.3% × asset turnover 1.0x. Gross margin 47.5%. Operating margin 14.6%. Source: 10-Q filed 2026-11-03.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 13.4% | Good | Above sector median of 4.4% |
| Return on Equity (ROE) | 16.6% | Good | Efficient use of shareholder equity |
| Gross Margin | 47.5% | Good | Strong pricing power |
| Operating Margin | 14.6% | Good | Moderate operational efficiency |
Cash Flow: SHOPIFY INC. generates $2.7B FCF at 18.8% margin, positive NaN/8 quarters
FCF TTM $2.7B. FCF margin 18.8%, Top 50%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-03.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 18.8% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.7B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for SHOPIFY INC.
Interest coverage 7.3x. Source: 10-Q filed 2026-11-03.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Interest Coverage | 7.3x | Good | Comfortable debt service |
Valuation: SHOPIFY INC. trades at 88.8x earnings
P/E 88.8x. EV/Sales 13.0x. FCF yield 1.4%. Source: 10-Q filed 2026-11-03.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| P/E Ratio | 88.8x | Warning | Premium valuation |
| EV/Sales | 13.0x | Warning | Growth premium priced in |
| FCF Yield | 1.4% | Warning | Lower cash yield |
Capital Allocation: SHOPIFY INC. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2026-11-03.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 13.4% | Top 25% | 3.0x above |
| Free Cash Flow Margin | 18.8% | Top 50% | 1.9x above |
| Gross Margin | 47.5% | Bottom 50% | 0.9x below |
| Operating Margin | 14.6% | Top 50% | 3.1x above |
| Return on Equity (ROE) | 16.6% | Top 50% | 2.7x above |
| P/E Ratio | 88.8x | N/A | - |
Financial Scorecard
| Metric | SHOP | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 13.4% | Good | Top 25% of sector (median: 4.4%) |
| Free Cash Flow Margin | 18.8% | Good | Top 50% of sector (median: 10.1%) |
| Gross Margin | 47.5% | Good | Bottom 50% of sector (median: 50.8%) |
| P/E Ratio (Price-to-Earnings) | 88.8x | Warning | High expectations priced in |
| Free Cash Flow Yield | 1.4% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is SHOPIFY INC.'s Return on Invested Capital (ROIC)?
SHOPIFY INC. (SHOP) has a trailing twelve-month Return on Invested Capital (ROIC) of 13.4%. The 8-quarter median ROIC is 12.6% with a improving trend. Sector median 4.4%. Source: 10-Q filed 2026-11-03.
Q: What is SHOPIFY INC.'s Free Cash Flow Margin?
SHOPIFY INC. (SHOP) has a free cash flow margin of 18.8%, generating $2.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-03.
Q: What is SHOPIFY INC.'s P/E ratio and how does it compare to peers?
SHOPIFY INC. (SHOP) trades at a P/E ratio of 88.8x, which is above the sector median of N/A. EV/Sales 13.0x. FCF yield 1.4%. Source: 10-Q filed 2026-11-03.
Q: What is SHOPIFY INC.'s revenue and earnings growth?
SHOPIFY INC. (SHOP) grew revenue by 32.5% year-over-year. EPS +20.3% YoY. Source: 10-Q filed 2026-11-03.
Q: How does SHOPIFY INC. compare to competitors in Technology?
Compared to other companies in Technology, SHOPIFY INC. (SHOP) shows: ROIC 13.4%, sector median 4.4% (Top 25%). FCF margin 18.8%, sector median 10.1% (Top 50%). Gross margin 47.5%, 3.3pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with SHOPIFY INC.?
No quantitative warning flags fired for SHOPIFY INC. (SHOP) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-11-03.
Data Source: Data sourced from 10-Q filed 2026-11-03. TTM metrics as of Q3 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.
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