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 (2.1/5)
Our Shopify stock opinion is based on fundamentals of the company. This Shopify stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you sell SHOP stock?
- Shopify registered a negative operating margin of -9.5% (average) over the Trailing Twelve Months (TTM).
- Shopify registered an average TTM Net loss of -9.1%.
- The lack of profits renders the PE ratio useless for SHOP stock.
- SHOP stock is trading at a PS multiple of 17.5, which is a negative when compared to the Internet Services industry average multiple of 2.6.
- Shopify's negative ROIC of -171.4% indicates operational inefficiency.
- Shopify has a negative ROE (Return On Equity) of -12.7%, indicating the company is not profitable.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.4%.