Fundamental analysis · SEC EDGAR · TTM through 31/03/2026
SHOP · Nasdaq · Technology
Fundamental quality
85
out of 100
Shopify Inc. grows profitably: it increases revenue at double digits (31.6% a year) without giving up profitability (net margin 10.8%). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 10.8%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Shopify is the platform millions of merchants use to run their online store: website, payments, shipping and financing in one place. It charges subscriptions and, above all, a small cut of each merchant sale — so it grows when they sell more.
EPS growth: 31.3% · Revenue growth: 31.6%
Net margin: 10.8% · ROE: 10.7%
Net debt/EBITDA: -1.1x · FCF: 17.1%
Source: SEC EDGAR · TTM through 31/03/2026
The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 2,929 | 320 | 383 | — |
| 2021 | 4,612 | 2,915 | 485 | — |
| 2022 | 5,600 | -3,460 | -186 | — |
| 2023 | 7,060 | 132 | 905 | -1,413 |
| 2024 | 8,880 | 2,019 | 1,597 | -1,498 |
| 2025 | 11,556 | 1,231 | 2,007 | -1,545 |
Between 2020 and 2025, revenue went from $2,929M to $11,556M (+294%) and net income went from $320M to $1,231M (+285%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
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Is Shopify Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Shopify Inc. a good company to invest in?
In terms of business quality, Shopify Inc. scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Shopify Inc. a profitable company?
Yes. Shopify Inc. shows a net margin of 10.8% and an ROE of 10.7%, a sign of a profitable business.
Does Shopify Inc. have a lot of debt?
No. Shopify Inc. has a net cash position: more cash than debt.
Is Shopify Inc. growing?
Its revenue has grown 31.6% annualized in recent years and its earnings per share 31.3%, and without interruption since 2020.
Does Shopify Inc. generate cash?
Yes. It converts about 17.1% of its revenue into free cash flow.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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