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.