Shopify Stock Analysis (NYSE:SHOP)

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$76.38 $0.32 (0.42%) SHOP stock closing price Apr 21, 2017 (Closing)
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Shopify
Updated on : Apr 21, 2017
previous close
SHOP 76.4 (0%)
NASDAQ 5910.5 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-9.5%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
13.9M
Debt/Equity Ratio:
 0.03
Compared to the industry
Cash Flow
Operating cash flow:
$6.7M
Net Income:
-$8.9M
PROS      CONS
Recent Growth
Low Debt Burden
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
SHOP PS :
17.5
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-171.4%
Return on Equity:
-12.7%
Free Cash Flow Margin:
-1.4%
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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 (2.1/5)

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 buy SHOP stock?

  • Shopify's revenue growth came in at 85.8% in 2016 Q4.
  • With a debt/equity ratio of  0.03, Shopify is comparatively less leveraged than its peers in the Computer and Technology sector.

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%.

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