Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Shopify

TSX:SHOP
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SHOP
TSX
$50B
Market Cap
  1. Home
  2. CA
  3. Software
Company description

Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
  • Shopify has significant price volatility in the past 3 months.
SHOP Share Price and Events
7 Day Returns
-2.7%
TSX:SHOP
3.8%
CA IT
4.5%
CA Market
1 Year Returns
127.5%
TSX:SHOP
-20.4%
CA IT
-24.5%
CA Market
SHOP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shopify (SHOP) -2.7% -1.9% 18.4% 127.5% 565.8% -
CA IT 3.8% -21.3% -31.3% -20.4% 15% 34.8%
CA Market 4.5% -20.1% -24.9% -24.5% -22.2% -16.5%
1 Year Return vs Industry and Market
  • SHOP outperformed the IT industry which returned -20.4% over the past year.
  • SHOP outperformed the Market in Canada which returned -24.5% over the past year.
Price Volatility
SHOP
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Shopify undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shopify to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shopify.

TSX:SHOP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 31 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SHOP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.9 (1 + (1- 26.5%) (0.3%))
0.934
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.934 * 5.44%)
6.52%

Discounted Cash Flow Calculation for TSX:SHOP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shopify is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:SHOP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.52%)
2020 -33.40 Analyst x13 -31.36
2021 35.89 Analyst x11 31.63
2022 447.59 Analyst x2 370.31
2023 586.86 Analyst x2 455.81
2024 971.88 Analyst x2 708.64
2025 1,284.62 Est @ 32.18% 879.33
2026 1,579.53 Est @ 22.96% 1,015.00
2027 1,840.18 Est @ 16.5% 1,110.10
2028 2,060.69 Est @ 11.98% 1,167.01
2029 2,242.45 Est @ 8.82% 1,192.20
Present value of next 10 years cash flows $6,898.00
TSX:SHOP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,242.45 × (1 + 1.44%) ÷ (6.52% – 1.44%)
$44,764.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $44,764.83 ÷ (1 + 6.52%)10
$23,799.21
TSX:SHOP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,898.00 + $23,799.21
$30,697.21
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,697.21 / 117.07
$262.22
TSX:SHOP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:SHOP represents 1.42088x of NYSE:SHOP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.42088x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 262.22 x 1.42088
CA$372.59
Value per share (CAD) From above. CA$372.59
Current discount Discount to share price of CA$611.52
= -1 x (CA$611.52 - CA$372.59) / CA$372.59
-64.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Shopify is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shopify's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shopify's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SHOP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.10
NYSE:SHOP Share Price ** NYSE (2020-03-30) in USD $430.38
North America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 23.68x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.3x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shopify.

TSX:SHOP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SHOP Share Price ÷ EPS (both in USD)

= 430.38 ÷ -1.10

-389.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shopify is loss making, we can't compare its value to the North America IT industry average.
  • Shopify is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Shopify's expected growth come at a high price?
Raw Data
TSX:SHOP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -389.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts
39.2%per year
North America IT Industry PEG Ratio Median Figure of 62 Publicly-Listed IT Companies 1.88x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 0.7x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Shopify, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Shopify's assets?
Raw Data
TSX:SHOP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $25.90
NYSE:SHOP Share Price * NYSE (2020-03-30) in USD $430.38
Canada IT Industry PB Ratio Median Figure of 24 Publicly-Listed IT Companies 1.92x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 0.99x
TSX:SHOP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SHOP Share Price ÷ Book Value per Share (both in USD)

= 430.38 ÷ 25.90

16.62x

* Primary Listing of Shopify.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shopify is overvalued based on assets compared to the CA IT industry average.
X
Value checks
We assess Shopify's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Shopify has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Shopify expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shopify expected to grow at an attractive rate?
  • Shopify's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Shopify's earnings growth is expected to exceed the Canada market average.
  • Shopify's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SHOP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SHOP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts 39.2%
TSX:SHOP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts 25.4%
North America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
Canada IT Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SHOP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SHOP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 7,492 1,689 2,474 4
2023-12-31 5,489 1,055 859 4
2022-12-31 4,052 624 261 5
2021-12-31 2,945 133 -274 30
2020-12-31 2,171 72 -282 31
2020-03-31
TSX:SHOP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,578 71 -125
2019-09-30 1,417 27 -127
2019-06-30 1,296 60 -78
2019-03-31 1,179 36 -73
2018-12-31 1,073 9 -65
2018-09-30 952 19 -66
2018-06-30 854 10 -52
2018-03-31 760 2 -42
2017-12-31 673 8 -40
2017-09-30 581 -4 -46
2017-06-30 509 3 -46
2017-03-31 444 17 -40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shopify's earnings are expected to grow significantly at over 20% yearly.
  • Shopify's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SHOP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below

All data from Shopify Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SHOP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 9.18 9.18 9.18 1.00
2023-12-31 4.34 4.34 4.34 1.00
2022-12-31 2.24 3.35 1.13 2.00
2021-12-31 -2.19 -0.91 -3.02 16.00
2020-12-31 -2.40 -1.79 -2.86 17.00
2020-03-31
TSX:SHOP Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.10
2019-09-30 -1.15
2019-06-30 -0.71
2019-03-31 -0.68
2018-12-31 -0.61
2018-09-30 -0.64
2018-06-30 -0.51
2018-03-31 -0.43
2017-12-31 -0.42
2017-09-30 -0.49
2017-06-30 -0.51
2017-03-31 -0.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Shopify is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Shopify's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shopify has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Shopify performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shopify's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shopify does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Shopify's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Shopify's 1-year growth to the North America IT industry average as it is not currently profitable.
Earnings and Revenue History
Shopify's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shopify Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SHOP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,578.17 -124.84 645.08 343.92
2019-09-30 1,416.88 -127.13 583.13 310.41
2019-06-30 1,296.39 -77.53 541.65 283.48
2019-03-31 1,179.37 -72.80 497.09 254.15
2018-12-31 1,073.23 -64.55 454.09 226.26
2018-09-30 952.18 -66.03 412.49 199.22
2018-06-30 853.57 -52.22 369.68 174.16
2018-03-31 760.27 -42.30 326.47 153.33
2017-12-31 673.30 -40.00 290.78 132.78
2017-09-30 580.87 -45.88 258.10 117.86
2017-06-30 509.00 -45.62 225.36 101.37
2017-03-31 443.99 -40.02 195.10 85.73
2016-12-31 389.33 -35.36 171.54 73.29
2016-09-30 329.12 -32.80 149.03 60.73
2016-06-30 282.33 -28.33 128.64 51.67
2016-03-31 240.61 -23.19 109.28 44.22
2015-12-31 205.23 -18.79 90.32 37.86
2015-09-30 170.24 -17.28 75.36 32.80
2015-06-30 144.80 -16.89 66.17 29.30
2015-03-31 123.56 -20.48 60.96 27.14
2014-12-31 105.02 -22.31 55.31 25.92
2013-12-31 50.25 -4.84 27.33 13.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Shopify has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Shopify has efficiently used its assets last year compared to the North America IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Shopify improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Shopify's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shopify has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Shopify's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shopify's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shopify is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shopify's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shopify's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Shopify has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shopify Company Filings, last reported 3 months ago.

TSX:SHOP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,015.73 0.00 2,468.05
2019-09-30 2,820.06 0.00 2,667.18
2019-06-30 2,161.18 0.00 2,013.33
2019-03-31 2,127.92 0.00 1,997.01
2018-12-31 2,090.77 0.00 1,979.27
2018-09-30 1,672.08 0.00 1,578.23
2018-06-30 1,656.20 0.00 1,574.17
2018-03-31 1,649.89 0.00 1,580.03
2017-12-31 1,001.10 0.00 943.28
2017-09-30 987.92 0.00 926.56
2017-06-30 977.44 0.00 932.42
2017-03-31 410.86 0.00 395.69
2016-12-31 410.48 0.00 395.49
2016-09-30 411.52 0.00 400.29
2016-06-30 188.75 0.00 179.65
2016-03-31 190.98 0.00 189.46
2015-12-31 195.32 0.00 191.56
2015-09-30 197.31 0.00 186.94
2015-06-30 199.55 0.00 198.83
2015-03-31 64.76 0.00 59.16
2014-12-31 67.73 0.00 59.84
2013-12-31 85.38 0.00 83.71
  • Shopify has no debt.
  • Shopify has not taken on any debt in the past 5 years.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Shopify has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Shopify has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.8% per year.
X
Financial health checks
We assess Shopify's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shopify has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Shopify's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Shopify dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Shopify shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Shopify's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Shopify's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SHOP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
North America IT Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.8%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SHOP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2020-03-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Shopify has not reported any payouts.
  • Unable to verify if Shopify's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Shopify's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Shopify has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Shopify's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Shopify's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shopify afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shopify has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Shopify's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tobi Lütke
COMPENSATION $8,586,982
AGE 38
TENURE AS CEO 11.8 years
CEO Bio

Mr. Tobias Lütke, also known as Tobi, Co-founded Shopify Inc. in September 2004 and serves as its Chairman. Mr. Lütke has been the Chief Executive Officer of Shopify Inc. since April 2008. Prior to that, he served as the Chief Technology Officer of Shopify Inc. from September 2004 to April 2008. He worked on the core team of the Ruby on Rails framework and has created many popular open source libraries such as Active Merchant. He has been a Director of Shopify Inc. since 2004.

CEO Compensation
  • Tobi's compensation has increased whilst company is loss making.
  • Tobi's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Shopify management team in years:

3.6
Average Tenure
43.5
Average Age
  • The tenure for the Shopify management team is about average.
Management Team

Tobi Lütke

TITLE
Founder
COMPENSATION
$9M
AGE
38
TENURE
11.8 yrs

Amy Shapero

TITLE
Chief Financial Officer
COMPENSATION
$12M
AGE
56
TENURE
1.8 yrs

Harley Finkelstein

TITLE
Chief Operating Officer
COMPENSATION
$4M
AGE
36
TENURE
4.2 yrs

Jeff Weiser

TITLE
Chief Marketing Officer
COMPENSATION
$5M
AGE
42
TENURE
2 yrs

Craig Miller

TITLE
Chief Product Officer
COMPENSATION
$6M
AGE
36
TENURE
3 yrs

Jean-Michel Lemieux

TITLE
Chief Technology Officer
COMPENSATION
$2M
AGE
46

Katie Keita

TITLE
Senior Director of Investor Relations

Joe Frasca

TITLE
Senior VP
AGE
45
TENURE
5.8 yrs

Darrell Etherington

TITLE
Public Relations Manager

Toby Shannan

TITLE
Senior Vice President of Support
AGE
49
Board of Directors Tenure

Average tenure and age of the Shopify board of directors in years:

4.8
Average Tenure
59
Average Age
  • The tenure for the Shopify board of directors is about average.
Board of Directors

Tobi Lütke

TITLE
Founder
COMPENSATION
$9M
AGE
38

Rob Ashe

TITLE
Lead Independent Director
COMPENSATION
$298K
AGE
60
TENURE
4.8 yrs

John Phillips

TITLE
Independent Director
AGE
69
TENURE
9.8 yrs

Colleen Johnston

TITLE
Independent Director
AGE
60
TENURE
1.2 yrs

Jeremy Levine

TITLE
Independent Director
AGE
45
TENURE
9 yrs

Gail Goodman

TITLE
Independent Director
COMPENSATION
$258K
AGE
58
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • Shopify individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
04. Mar 20 Sell Brittany Forsyth Individual 02. Mar 20 03. Mar 20 -900 CA$656.50 CA$-585,401
04. Mar 20 Sell Craig Miller Individual 02. Mar 20 02. Mar 20 -978 CA$650.87 CA$-636,553
28. Feb 20 Sell Craig Miller Individual 25. Feb 20 25. Feb 20 -2,105 CA$629.73 CA$-1,325,577
25. Feb 20 Sell Jean-Michel Lemieux Individual 24. Feb 20 25. Feb 20 -1,343 CA$652.74 CA$-852,422
07. Jan 20 Sell Joseph Frasca Individual 02. Dec 19 02. Dec 19 -252 CA$423.98 CA$-106,842
20. Dec 19 Sell Harley Finkelstein Individual 03. Dec 19 03. Dec 19 -2,307 CA$449.04 CA$-1,035,945
12. Dec 19 Sell Tobias Lütke Individual 02. Dec 19 02. Dec 19 -1,348 CA$423.98 CA$-571,520
10. Dec 19 Sell Jeffrey Weiser Individual 04. Dec 19 04. Dec 19 -681 CA$485.53 CA$-330,644
03. Dec 19 Sell Brittany Forsyth Individual 02. Dec 19 03. Dec 19 -914 CA$449.04 CA$-402,058
28. Nov 19 Sell Jean-Michel Lemieux Individual 25. Nov 19 25. Nov 19 -278 CA$417.26 CA$-115,997
27. Nov 19 Sell Joseph Frasca Individual 25. Nov 19 25. Nov 19 -278 CA$417.26 CA$-115,997
05. Sep 19 Sell Harley Finkelstein Individual 03. Sep 19 03. Sep 19 -2,978 CA$513.68 CA$-1,529,729
28. Aug 19 Sell Tobias Lütke Individual 26. Aug 19 26. Aug 19 -1,665 CA$522.74 CA$-870,356
15. Aug 19 Sell Amy Shapero Individual 12. Aug 19 12. Aug 19 -2,571 CA$489.61 CA$-1,258,779
24. May 19 Sell Joseph Frasca Individual 24. May 19 24. May 19 -278 CA$365.45 CA$-101,594
24. May 19 Sell Craig Miller Individual 24. May 19 24. May 19 -694 CA$370.56 CA$-257,168
24. May 19 Sell Harley Finkelstein Individual 24. May 19 24. May 19 -416 CA$370.56 CA$-154,153
16. May 19 Sell Steven Collins Individual 10. May 19 16. May 19 -727 CA$365.40 CA$-261,162
07. May 19 Sell Jeremy Levine Individual 06. May 19 06. May 19 -38,000 CA$356.28 CA$-13,538,585
X
Management checks
We assess Shopify's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shopify has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.

Details
Name: Shopify Inc.
SHOP
Exchange: TSX
Founded: 2004
$71,237,944,185
117,065,336
Website: http://www.shopify.com
Address: Shopify Inc.
150 Elgin Street,
8th Floor,
Ottawa,
Ontario, K2P 1L4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SHOP Class A Subordinate Voting Shares New York Stock Exchange US USD 21. May 2015
DB 307 Class A Subordinate Voting Shares Deutsche Boerse AG DE EUR 21. May 2015
LSE 0VHA Class A Subordinate Voting Shares London Stock Exchange GB USD 21. May 2015
TSX SHOP Class A Subordinate Voting Shares The Toronto Stock Exchange CA CAD 21. May 2015
BMV SHOP N Class A Subordinate Voting Shares Bolsa Mexicana de Valores MX MXN 21. May 2015
Number of employees
Current staff
Staff numbers
5,000
Shopify employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 03:47
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.