Shopify Stock Fundamentals
| SHOP Stock | USD 106.48 2.54 2.44% |
Shopify fundamentals help investors to digest information that contributes to Shopify's financial success or failures. It also enables traders to predict the movement of Shopify Stock. The fundamental analysis module provides a way to measure Shopify's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Shopify stock.
At this time, Shopify's Cost Of Revenue is relatively stable compared to the past year. As of 11/21/2024, Total Operating Expenses is likely to grow to about 3.8 B, though EBIT is likely to grow to (74.1 M). Shopify | Select Account or Indicator |
Shopify Company Return On Equity Analysis
Shopify's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Shopify Return On Equity | 0.15 |
Most of Shopify's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Shopify is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Shopify Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Shopify has a Return On Equity of 0.1531. This is 101.27% lower than that of the IT Services sector and significantly higher than that of the Information Technology industry. The return on equity for all United States stocks is 149.39% lower than that of the firm.
Shopify Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Shopify's current stock value. Our valuation model uses many indicators to compare Shopify value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Shopify competition to find correlations between indicators driving Shopify's intrinsic value. More Info.Shopify is rated fourth in return on equity category among its peers. It is rated second in return on asset category among its peers reporting about 0.37 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Shopify is roughly 2.72 . At this time, Shopify's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Shopify by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Shopify Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Shopify's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Shopify could also be used in its relative valuation, which is a method of valuing Shopify by comparing valuation metrics of similar companies.Shopify is currently under evaluation in return on equity category among its peers.
Shopify Current Valuation Drivers
We derive many important indicators used in calculating different scores of Shopify from analyzing Shopify's financial statements. These drivers represent accounts that assess Shopify's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Shopify's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 44.9B | 135.3B | 171.7B | 44.0B | 99.8B | 52.4B | |
| Enterprise Value | 44.4B | 133.6B | 170.4B | 43.7B | 99.6B | 51.9B |
Shopify ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Shopify's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Shopify's managers, analysts, and investors.Environmental | Governance | Social |
Shopify Fundamentals
| Return On Equity | 0.15 | ||||
| Return On Asset | 0.0563 | ||||
| Profit Margin | 0.16 % | ||||
| Operating Margin | 0.14 % | ||||
| Current Valuation | 130.8 B | ||||
| Shares Outstanding | 1.21 B | ||||
| Shares Owned By Insiders | 0.18 % | ||||
| Shares Owned By Institutions | 70.58 % | ||||
| Number Of Shares Shorted | 21.62 M | ||||
| Price To Earning | 282.85 X | ||||
| Price To Book | 13.27 X | ||||
| Price To Sales | 16.39 X | ||||
| Revenue | 7.06 B | ||||
| Gross Profit | 2.75 B | ||||
| EBITDA | (8 M) | ||||
| Net Income | 132 M | ||||
| Cash And Equivalents | 1.65 B | ||||
| Cash Per Share | 3.88 X | ||||
| Total Debt | 1.15 B | ||||
| Debt To Equity | 0.15 % | ||||
| Current Ratio | 6.64 X | ||||
| Book Value Per Share | 7.05 X | ||||
| Cash Flow From Operations | 944 M | ||||
| Short Ratio | 3.89 X | ||||
| Earnings Per Share | 0.99 X | ||||
| Price To Earnings To Growth | 1.12 X | ||||
| Target Price | 108.27 | ||||
| Number Of Employees | 8.3 K | ||||
| Beta | 2.37 | ||||
| Market Capitalization | 141.3 B | ||||
| Total Asset | 11.3 B | ||||
| Retained Earnings | (390 M) | ||||
| Working Capital | 5.38 B | ||||
| Current Asset | 202.47 M | ||||
| Current Liabilities | 37.24 M | ||||
| Net Asset | 11.3 B |
About Shopify Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Shopify's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Shopify using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Shopify based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 302 M | 317.1 M | |
| Total Revenue | 7.1 B | 7.4 B | |
| Cost Of Revenue | 3.5 B | 3.7 B | |
| Stock Based Compensation To Revenue | 0.09 | 0.05 | |
| Sales General And Administrative To Revenue | 0.07 | 0.08 | |
| Research And Ddevelopement To Revenue | 0.25 | 0.25 | |
| Capex To Revenue | 0.01 | 0.01 | |
| Revenue Per Share | 5.51 | 5.78 | |
| Ebit Per Revenue | 0.04 | 0.04 |
Pair Trading with Shopify
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shopify position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shopify will appreciate offsetting losses from the drop in the long position's value.Moving together with Shopify Stock
| 0.73 | DJCO | Daily Journal Corp | PairCorr |
| 0.74 | AI | C3 Ai Inc Trending | PairCorr |
| 0.77 | AZ | A2Z Smart Technologies | PairCorr |
| 0.77 | BL | Blackline | PairCorr |
Moving against Shopify Stock
The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shopify - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shopify to buy it.
The correlation of Shopify is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shopify can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Shopify Stock Analysis
When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.