# Shopify Inc. (SHOP.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$200.76, market value C$260.5 billion.

## Valuation
- **P/E (trailing): 97.9×** (5-yr avg 359.3×, 3-yr avg 453.5×). Shopify Inc. trades at 97.9× trailing earnings, well below its own five-year average of 359.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 59.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 14.2×**. Each dollar of revenue is priced at 14.2×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 14.7×**. The shares trade at 14.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 82.5×**. Enterprise value is 82.5× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.2%** (5-yr avg 0.4%). Free cash flow equals 1.2% of the market value, above its five-year average of 0.4%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.0%**. The inverse of the P/E: 1.0% of the price is earned each year.

## Profitability
- **Gross margin: 47.7%**. Shopify Inc. keeps 47.7% of revenue after the direct cost of what it sells.
- **Operating margin: 16.7%**. 16.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 10.7%**. 10.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.3%**. 9.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 23.2%**. Return on all capital, debt included, is 23.2%: comfortably above what that capital costs.
- **Return on assets: 12.9%**. Each dollar of assets produces 12.9% of profit.

## Growth
- **Revenue growth (1 yr): 32.4%** (3-yr 28.1%/yr, 5-yr 32.0%/yr). Revenue grew 32.4% over the last year, against 32.0% a year compounded over five years.
- **EPS growth (1 yr): -38.1%** (5-yr 28.9%/yr). Earnings per share fell 38.1%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Shopify Inc. holds more cash than debt.
- **Current ratio: 5.92** (quick 5.91). Current assets cover the next year's liabilities 5.92 times.
- **Altman Z-score: 94.23**. A Z-score of 94.23 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Shopify Inc. does not currently pay a dividend, but it returned 1.0% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): -0.0%** (YTD -9.2%, 3-mo 31.4%). The shares are down 0.0% over twelve months including dividends.
- **From 52-week high: -20.7%** (55.6% above the low). Trading 21% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 2.17** (volatility 56%). Beta of 2.17 against the S&P/TSX Composite: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SHOP.TO · Page: https://foliofundamentals.com/stocks/shop.to

Not investment advice.