SHOPIFY INC. (SHOP) Factsheet
SHOPIFY INC. (SHOP) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 256.4%. FCF margin 17.1%. D/E 0.0x. Source: 10-Q filed 2025-11-04.
| Metric | Value | Context |
|---|---|---|
| ROIC | 256.4% | Above industry average |
| FCF Margin | 17.1% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC 256.4% — Top 5% of sector peers. FCF margin 17.1% — Top 50%.
Explore SHOPIFY INC.: Earnings History | Filings | ROIC Analysis
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_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: SHOPIFY INC. earns 256.4% ROIC, Top 5% in Technology
ROIC TTM 256.4%, sector median 4.8%, Top 5%. DuPont: NOPAT margin 258.5% × asset turnover 0.8x. Gross margin 48.0%. Operating margin 13.3%. Source: 10-Q filed 2025-11-04.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 256.4% | Excellent | Above sector median of 4.8% |
| Return on Equity (ROE) | 10.7% | Adequate | Moderate equity returns |
| Gross Margin | 48.0% | Good | Strong pricing power |
| Operating Margin | 13.3% | Good | Moderate operational efficiency |
Cash Flow: SHOPIFY INC. generates $2.1B FCF at 17.1% margin, positive NaN/8 quarters
FCF TTM $2.1B. FCF margin 17.1%, Top 50%. OCF/Net income 1.6x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-04.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 17.1% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.1B | Good | Positive cash generation |
| OCF/Net Income | 1.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: SHOPIFY INC. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-11-04.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: SHOPIFY INC. trades at 109.2x earnings
P/E 109.2x. EV/Sales 11.3x. FCF yield 1.5%. Source: 10-Q filed 2025-11-04.
| Metric | SHOP | Rating | Context |
|---|---|---|---|
| P/E Ratio | 109.2x | Warning | Premium valuation |
| EV/Sales | 11.3x | Warning | Growth premium priced in |
| FCF Yield | 1.5% | 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 2025-11-04.
| 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) | 256.4% | Top 5% | 53.5x above |
| Free Cash Flow Margin | 17.1% | Top 50% | 2.0x above |
| Gross Margin | 48.0% | Bottom 50% | 0.9x below |
| Operating Margin | 13.3% | Top 50% | 2.9x above |
| Return on Equity (ROE) | 10.7% | Top 50% | 2.2x above |
| P/E Ratio | 109.2x | N/A | - |
Financial Scorecard
| Metric | SHOP | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 256.4% | Excellent | Top 5% of sector (median: 4.8%) |
| Free Cash Flow Margin | 17.1% | Good | Top 50% of sector (median: 8.5%) |
| Gross Margin | 48.0% | Good | Bottom 50% of sector (median: 51.5%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 109.2x | Warning | High expectations priced in |
| Free Cash Flow Yield | 1.5% | 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 256.4%. Sector median 4.8%. Source: 10-Q filed 2025-11-04.
Q: What is SHOPIFY INC.'s Free Cash Flow Margin?
SHOPIFY INC. (SHOP) has a free cash flow margin of 17.1%, generating $2.1 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-04.
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 109.2x, which is above the sector median of N/A. EV/Sales 11.3x. FCF yield 1.5%. Source: 10-Q filed 2025-11-04.
Q: What is SHOPIFY INC.'s revenue and earnings growth?
SHOPIFY INC. (SHOP) grew revenue by 31.8% year-over-year. EPS -17.5% YoY. Source: 10-Q filed 2025-11-04.
Q: How does SHOPIFY INC. compare to competitors in Technology?
Compared to other companies in Technology, SHOPIFY INC. (SHOP) shows: ROIC 256.4%, sector median 4.8% (Top 5%). FCF margin 17.1%, sector median 8.5% (Top 50%). Gross margin 48.0%, 3.5pp 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 2025-11-04.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q1 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.