Shopify Stock Analysis (NYSE:SHOP)

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$93.61 $4.19 (4.69%) SHOP stock closing price Jul 24, 2017 (Closing)
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Shopify
Updated on : Jul 24, 2017
previous close
SHOP 93.6 (0%)
NASDAQ 6410.8 (0%)
Closing Price On: Jul 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-9.4%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
14M
Debt/Equity Ratio:
 0.03
Compared to the industry
Cash Flow
Operating cash flow:
$4M
Net Income:
-$13.6M
PROS      CONS
Recent Growth
Low Debt Burden
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
SHOP PS :
19
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-173.1%
Return on Equity:
-12.4%
Free Cash Flow Margin:
1.1%
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Shopify Analysis Video

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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 buy SHOP stock?

  • Shopify sales grew by 75.2% year on year in 2017 Q1.
  • With its debt/equity ratio of  0.03, Shopify has a lower debt burden when compared to the Computer and Technology average.

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.

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