SHOP Intrinsic Valuation and Fundamental Analysis - Shopify Inc - Alpha Spread

Shopify Inc
NYSE:SHOP

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Shopify Inc
NYSE:SHOP
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Price: 83.24 USD 0.64% Market Closed
Market Cap: 107.4B USD
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Intrinsic Value

The intrinsic value of one SHOP stock under the Base Case scenario is 26.74 USD. Compared to the current market price of 83.24 USD, Shopify Inc is Overvalued by 68%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

SHOP Intrinsic Value
26.74 USD
Overvaluation 68%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

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Shopify Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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of Shopify Inc.

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of Shopify Inc.

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for Shopify Inc with those of its competitors based on recent analyst estimates.

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of Shopify Inc against its competitors.

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(gross, operating, and net) of Shopify Inc compared to its peers.

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Business Breakdown

Shopify Inc., founded in 2006, has emerged as a powerhouse platform for e-commerce, empowering entrepreneurs and businesses of all sizes to create their online storefronts with ease. With roots tracing back to a simple idea of selling snowboards online, Shopify has grown into a robust ecosystem that supports over 1.7 million businesses worldwide. The company's user-friendly interface, diverse range of customizable templates, and extensive app marketplace have democratized access to e-commerce, allowing anyone—from aspiring artisans to established brands—to sell their products across multiple channels, including social media and physical locations. As more consumers shift to online shopping,...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Shopify Inc

Current Assets 6.4B
Cash & Short-Term Investments 5B
Receivables 1.2B
Other Current Assets 188m
Non-Current Assets 4.9B
Long-Term Investments 4.3B
PP&E 144m
Intangibles 475m
Other Non-Current Assets 44m
Current Liabilities 874m
Accounts Payable 559m
Accrued Liabilities 17m
Other Current Liabilities 298m
Non-Current Liabilities 1.3B
Long-Term Debt 917m
Other Non-Current Liabilities 383m
Efficiency

Earnings Waterfall
Shopify Inc

Revenue
7.8B USD
Cost of Revenue
-3.8B USD
Gross Profit
4B USD
Operating Expenses
-3.1B USD
Operating Income
822m USD
Other Expenses
452m USD
Net Income
1.3B USD

Free Cash Flow Analysis
Shopify Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Shopify reported a robust Q2 with revenue rising 25% year-over-year, excluding logistics. A key driver was the 22% growth in Gross Merchandise Volume (GMV), led by same-store sales and new merchant acquisitions, especially in Europe. Subscription Solutions revenue jumped 27%, driven by international growth and successful marketing initiatives. Operating income reached $241 million, 12% of revenue, marking the fourth consecutive profitable quarter. Looking ahead, Shopify anticipates Q3 revenue growth in the low to mid-20% range and a 50 basis points increase in gross margin, indicating a promising outlook for sustained growth and profitability.

What is Earnings Call?
Fundamental Scores

SHOP Profitability Score
Profitability Due Diligence

Shopify Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
Exceptional Revenue Growth Forecast
Positive Free Cash Flow
49/100
Profitability
Score

Shopify Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

SHOP Solvency Score
Solvency Due Diligence

Shopify Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
Negative Net Debt
87/100
Solvency
Score

Shopify Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

SHOP Price Targets Summary
Shopify Inc

Wall Street analysts forecast SHOP stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for SHOP is 80.11 USD with a low forecast of 60.6 USD and a high forecast of 105 USD.

Lowest
Price Target
60.6 USD
27% Downside
Average
Price Target
80.11 USD
4% Downside
Highest
Price Target
105 USD
26% Upside
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Dividends

Shopify Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for SHOP is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
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Debt Paydown Yield
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SHOP News

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Profile

Shopify Inc Logo
Shopify Inc

Country

Canada

Industry

Technology

Market Cap

107.4B USD

Dividend Yield

0%

Description

Shopify, Inc. operates a cloud-based commerce platform designed for small and medium-sized businesses. The company is headquartered in Ottawa, Ontario and currently employs 10,000 full-time employees. The company went IPO on 2015-05-21. The merchants use the Company's software to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The firm's principal place of business is the Internet. The firm's subsidiaries include Donde Fashion Inc. and Donde Mobile R&D Ltd. (Donde).

Contact

ONTARIO
Ottawa
151 O'connor Street, Ground Floor
+16132412828.0
www.shopify.com

IPO

2015-05-21

Employees

10 000

Officers

See Also

Discover More
What is the Intrinsic Value of one SHOP stock?

The intrinsic value of one SHOP stock under the Base Case scenario is 26.74 USD.

Is SHOP stock undervalued or overvalued?

Compared to the current market price of 83.24 USD, Shopify Inc is Overvalued by 68%.

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