Shopify Stock Analysis (NYSE:SHOP)
Shopify Analysis Video
View Shopify stock analysis video. This is our SHOP analyst opinion covering the buy and sell arguments for SHOP stock.
Shopify Inc Stock Rating (2.2/5)
Our Shopify stock opinion is based on fundamentals of the company. This Shopify stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you sell SHOP stock?
- Shopify reported an average operating margin of -9.4% over the Last Twelve Months (LTM).
- Over the last 12 months, Shopify had an average Net loss of -9%.
- The lack of profits renders the PE ratio useless for SHOP stock.
- SHOP stock is trading at a PS multiple of 19, which is a negative when compared to the Internet Services industry average multiple of 2.8.
- The company has a negative Return on Invested Capital of -173.1%, which is a red flag.
- Shopify has a negative return on equity of -12.4%. This indicates that the firm is inefficient at generating profits.