SHOPIFY INC. (SHOP) Factsheet

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SHOPIFY INC. (SHOP) Stock Analysis

Analysis from 10-Q filed 2025-11-04. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 11.8%. FCF margin 17.7%. Source: 10-Q filed 2025-11-04.

Metric Value Context
ROIC 11.8% Near cost of capital
FCF Margin 17.7% Strong cash generation

ROIC 11.8% — Top 50% of sector peers. FCF margin 17.7% — Top 50%.

Explore SHOPIFY INC.: Earnings History | Filings

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 11.8% ROIC, Top 50% in Technology

ROIC TTM 11.8%, sector median 3.9%, Top 50%. DuPont: NOPAT margin 11.6% × asset turnover 0.9x. Gross margin 47.8%. Operating margin 13.9%. Source: 10-Q filed 2025-11-04.

Metric SHOP Rating Context
Return on Invested Capital (ROIC) 11.8% Adequate Above sector median of 3.9%
Return on Equity (ROE) 15.2% Good Efficient use of shareholder equity
Gross Margin 47.8% Good Strong pricing power
Operating Margin 13.9% Good Moderate operational efficiency

Cash Flow: SHOPIFY INC. generates $2.4B FCF at 17.7% margin, positive NaN/8 quarters

FCF TTM $2.4B. FCF margin 17.7%, Top 50%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-04.

Metric SHOP Rating Context
Free Cash Flow Margin 17.7% Good Excellent cash conversion
Free Cash Flow (TTM) $2.4B Good Positive cash generation
OCF/Net Income 1.2x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet Analysis for SHOPIFY INC.

Source: 10-Q filed 2025-11-04.


Valuation: SHOPIFY INC. trades at 77.0x earnings

P/E 77.0x. EV/Sales 3.5x. FCF yield 1.6%. Source: 10-Q filed 2025-11-04.

Metric SHOP Rating Context
P/E Ratio 77.0x Warning Premium valuation
EV/Sales 3.5x Good Growth premium priced in
FCF Yield 1.6% 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) 11.8% Top 50% 3.1x above
Free Cash Flow Margin 17.7% Top 50% 2.1x above
Gross Margin 47.8% Bottom 50% 0.9x below
Operating Margin 13.9% Top 50% 2.8x above
Return on Equity (ROE) 15.2% Top 50% 2.9x above
P/E Ratio 77.0x N/A -

Financial Scorecard

Metric SHOP Rating Sector Context
Return on Invested Capital (ROIC) 11.8% Adequate Top 50% of sector (median: 3.9%)
Free Cash Flow Margin 17.7% Good Top 50% of sector (median: 8.5%)
Gross Margin 47.8% Good Bottom 50% of sector (median: 50.6%)
P/E Ratio (Price-to-Earnings) 77.0x Warning High expectations priced in
Free Cash Flow Yield 1.6% 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 11.8%. Sector median 3.9%. 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 17.7%, generating $2.4 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 77.0x, which is above the sector median of N/A. EV/Sales 3.5x. FCF yield 1.6%. Source: 10-Q filed 2025-11-04.

Q: What is SHOPIFY INC.'s revenue and earnings growth?

SHOPIFY INC. (SHOP) grew revenue by 32.5% year-over-year. EPS -17.7% 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 11.8%, sector median 3.9% (Top 50%). FCF margin 17.7%, sector median 8.5% (Top 50%). Gross margin 47.8%, 2.8pp 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 Q2 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.