ScoreWhy is Shopify, Inc. ?
1
Poor Management Efficiency with a low ROE of 5.87%
- The company has been able to generate a Return on Equity (avg) of 5.87% signifying low profitability per unit of shareholders funds
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 30.37%
4
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at CAD 2,973.89 MM
- RAW MATERIAL COST(Y) Fallen by 1.39% (YoY)
- PRE-TAX PROFIT(Q) At CAD 748.95 MM has Grown at 60.12%
5
With ROE of 16.66%, it has a very expensive valuation with a 11.27 Price to Book Value
- Over the past year, while the stock has generated a return of 5.48%, its profits have risen by 30.7% ; the PEG ratio of the company is 2.3
6
High Institutional Holdings at 72.5%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Underperformed the market in the last 1 year
- The stock has generated a return of 5.48% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Shopify, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shopify, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shopify, Inc.
5.48%
4.95
56.35%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
30.37%
EBIT Growth (5y)
47.57%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.79
Tax Ratio
6.01%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
72.50%
ROCE (avg)
9.73%
ROE (avg)
5.87%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
68
Industry P/E
Price to Book Value
11.27
EV to EBIT
64.73
EV to EBITDA
63.82
EV to Capital Employed
19.95
EV to Sales
11.03
PEG Ratio
2.29
Dividend Yield
NA
ROCE (Latest)
30.82%
ROE (Latest)
16.66%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 2,973.89 MM
RAW MATERIAL COST(Y)
Fallen by 1.39% (YoY
PRE-TAX PROFIT(Q)
At CAD 748.95 MM has Grown at 60.12%
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.71 times
Here's what is working for Shopify, Inc.
Operating Cash Flow
Highest at CAD 2,973.89 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Pre-Tax Profit
At CAD 748.95 MM has Grown at 60.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Raw Material Cost
Fallen by 1.39% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Shopify, Inc.
Debtors Turnover Ratio
Lowest at 5.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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