NASDAQ · Technology

Shopify Inc.

SHOP · Software - Application

$127.55

▼ -0.12 (-0.09%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Shopify Inc. at $127.55.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 48.1%

Operating Margin 16.3%

Net Income Margin 10.7%

Fin. Health A

Years to Pay Off Debt 0.2 yrs

Working Capital $6.9B

Valuation F

Margin of Safety 0.0%

Price-to-Book 11.55x

Cash Flow A

Free Cash Flow $2.0B

CapEx % of Net Income 2.1%

Owner Earnings $1.3B

2/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $165.6B

Enterprise Value $160.8B

P/E (TTM) 135.69

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 48.1%

Operating Margin 16.3%

Net Margin 10.7%

Company Info

Sector Technology

Industry Software - Application

Employees 7600

Country Canada

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Shopify Inc. at $127.55.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $127.55, the stock trades at a 735% premium to its Graham Number of $15.28. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 23.7x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Shopify Inc.

Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants 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 for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	48.1% ▼	50.4%	49.8%	49.2%	N/A
Operating Margin %	16.3% ▲	14.7%	1.0%	-12.3%	N/A
Net Income %	10.7% ▼	22.7%	1.9%	-61.8%	N/A
Diluted EPS	N/A •	1.56	0.10	-2.73	2.29

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$15.2B	$13.9B	$11.3B	$10.8B	N/A
Total Debt	$188M ↓	$1.1B	$1.1B	$1.4B	N/A
Working Capital	$6.9B ▲	$5.3B	$5.4B	$5.2B	N/A
Years to Pay Debt	0.15	0.56	8.71	-0.40	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.0B ▲	$1.6B	$905M	-$186M	N/A
Owner Earnings	$1.3B	$2.1B	$241M	-$3.3B	N/A
CapEx % of Net Income	2.1%	0.9%	29.5%	N/A	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-122,728	71,064	-20,592	-135,466
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	2,583,000	582,000	216,000	2,417,000
Total Unusual Items	-667,000	756,000	-72,000	-3,011,000
Total Unusual Items Excluding Goodwill	-667,000	756,000	-72,000	-3,011,000
Net Income From Continuing Operation Net Minority Interest	1,231,000	2,019,000	132,000	-3,460,000
Reconciled Depreciation	31,000	36,000	70,000	93,000
Reconciled Cost Of Revenue	6,001,000	4,408,000	3,545,000	2,846,000
EBITDA	1,916,000	1,338,000	144,000	-594,000
EBIT	1,885,000	1,302,000	74,000	-687,000
Net Interest Income	331,000	308,000	241,000	75,000
Interest Expense				1,150	1,150
Interest Income	331,000	308,000	241,000	75,000
Normalized Income	1,775,272	1,334,064	183,408	-584,466
Net Income From Continuing And Discontinued Operation	1,231,000	2,019,000	132,000	-3,460,000
Total Expenses	9,671,000	7,578,000	6,986,000	6,287,000
Total Operating Income As Reported	1,468,000	1,075,000	-1,418,000	-822,000
Diluted Average Shares		1,294,580	1,295,511	1,266,268	1,273,647
Basic Average Shares		1,294,580	1,281,555	1,266,268	1,246,589
Diluted EPS		0	0	0	0
Basic EPS		0	0	0	0
Diluted NI Availto Com Stockholders	1,231,000	2,019,000	132,000	-3,460,000
Average Dilution Earnings		0	1,000	0	2,567
Net Income Common Stockholders	1,231,000	2,019,000	132,000	-3,460,000
Net Income	1,231,000	2,019,000	132,000	-3,460,000
Net Income Including Noncontrolling Interests	1,231,000	2,019,000	132,000	-3,460,000
Net Income Continuous Operations	1,231,000	2,019,000	132,000	-3,460,000
Tax Provision	278,000	209,000	53,000	-163,000
Pretax Income	1,509,000	2,228,000	185,000	-3,623,000
Other Income Expense	-707,000	618,000	-130,000	-3,011,000
Special Income Charges	-417,000	-227,000	-1,492,000	-135,000
Write Off	0	0	1,340,000	0
Restructuring And Mergern Acquisition	417,000	227,000	152,000	135,000
Earnings From Equity Interest	-40,000	-138,000	-58,000	0
Gain On Sale Of Security	-250,000	983,000	1,420,000	-2,876,000
Net Non Operating Interest Income Expense	331,000	308,000	241,000	75,000
Total Other Finance Cost				2,349	2,343
Interest Expense Non Operating				1,150	1,150
Interest Income Non Operating	331,000	308,000	241,000	75,000
Operating Income	1,885,000	1,302,000	74,000	-687,000
Operating Expense	3,670,000	3,170,000	3,441,000	3,441,000
Other Operating Expenses		227,000	152,000	135,000	81,717
Research And Development	1,536,000	1,367,000	1,730,000	1,503,000
Selling General And Administration	2,134,000	1,803,000	1,711,000	1,938,000
Selling And Marketing Expense	1,663,000	1,393,000	1,220,000	1,230,000
General And Administrative Expense	471,000	410,000	491,000	708,000
Other Gand A	471,000	410,000	491,000	708,000
Gross Profit	5,555,000	4,472,000	3,515,000	2,754,000
Cost Of Revenue	6,001,000	4,408,000	3,545,000	2,846,000
Total Revenue	11,556,000	8,880,000	7,060,000	5,600,000
Operating Revenue	11,556,000	8,880,000	7,060,000	5,600,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	1,303,904	1,294,580	1,286,570	1,275,129
Share Issued	1,303,904	1,294,580	1,286,570	1,275,129
Total Debt	188,000	1,126,000	1,150,000	1,396,000
Tangible Book Value	12,952,000	11,084,000	8,610,000	6,013,000
Invested Capital	13,473,000	12,476,000	9,982,000	9,152,000
Working Capital	6,904,000	5,298,000	5,377,000	5,194,000
Net Tangible Assets	12,952,000	11,084,000	8,610,000	6,013,000
Capital Lease Obligations	188,000	208,000	234,000	483,000
Common Stock Equity	13,473,000	11,558,000	9,066,000	8,239,000
Total Capitalization	13,473,000	11,558,000	9,982,000	9,152,000
Total Equity Gross Minority Interest	13,473,000	11,558,000	9,066,000	8,239,000
Stockholders Equity	13,473,000	11,558,000	9,066,000	8,239,000
Gains Losses Not Affecting Retained Earnings	1,000	-10,000	4,000	-16,000
Other Equity Adjustments	1,000	-10,000	4,000	-16,000
Retained Earnings	2,860,000	1,629,000	-390,000	-522,000
Additional Paid In Capital	236,000	305,000	251,000	30,000
Capital Stock	10,376,000	9,634,000	9,201,000	8,747,000
Common Stock	10,376,000	9,634,000	9,201,000	8,747,000
Total Liabilities Net Minority Interest	1,716,000	2,366,000	2,233,000	2,518,000
Total Non Current Liabilities Net Minority Interest	324,000	410,000	1,335,000	1,662,000
Non Current Deferred Liabilities	153,000	220,000	202,000	284,000
Non Current Deferred Revenue	98,000	147,000	196,000	268,000
Non Current Deferred Taxes Liabilities	55,000	73,000	6,000	16,000
Long Term Debt And Capital Lease Obligation	171,000	190,000	1,133,000	1,378,000
Long Term Capital Lease Obligation	171,000	190,000	217,000	465,000
Long Term Debt			916,000	913,000	910,963
Current Liabilities	1,392,000	1,956,000	898,000	856,000
Other Current Liabilities	1,000	13,000	3,000	16,000
Current Deferred Liabilities	300,000	283,000	302,000	296,000
Current Deferred Revenue	300,000	283,000	302,000	296,000
Current Debt And Capital Lease Obligation	17,000	936,000	17,000	18,000
Current Capital Lease Obligation	17,000	18,000	17,000	18,000
Current Debt		918,000
Other Current Borrowings		918,000
Pensionand Other Post Retirement Benefit Plans Current	102,000	99,000	55,000	68,000
Current Provisions	66,000	48,000	30,000
Payables And Accrued Expenses	906,000	577,000	491,000	458,000
Current Accrued Expenses		48,000	30,000
Payables	906,000	577,000	491,000	458,000
Other Payable	19,000	38,000	36,000	38,000
Total Tax Payable	317,000	179,000	91,000	56,000
Income Tax Payable	156,000	58,000	18,000	9,000
Accounts Payable	570,000	360,000	364,000	364,000
Total Assets	15,189,000	13,924,000	11,299,000	10,757,000
Total Non Current Assets	6,893,000	6,670,000	5,024,000	4,707,000
Other Non Current Assets	39,000	21,000			-74
Non Current Deferred Assets	33,000	37,000	44,000	41,000
Non Current Deferred Taxes Assets	33,000	37,000	44,000	41,000
Financial Assets					205,878
Investments And Advances	6,159,000	5,998,000	4,377,000	1,954,000
Other Investments			3,597,000	1,954,000
Investmentin Financial Assets	975,000	709,000	115,000	220,992
Available For Sale Securities	975,000	709,000	115,000	220,992
Long Term Equity Investment	5,184,000	5,289,000	4,262,000	1,954,000
Goodwill And Other Intangible Assets	521,000	474,000	456,000	2,226,000
Other Intangible Assets	30,000	22,000	29,000	390,000
Goodwill	491,000	452,000	427,000	1,836,000
Net PPE	141,000	140,000	147,000	486,000
Accumulated Depreciation	-175,000	-170,000	-156,000	-153,000
Gross PPE	316,000	310,000	303,000	639,000
Leases	159,000	149,000	142,000	182,000
Other Properties	88,000	93,000	98,000	389,000
Machinery Furniture Equipment	69,000	68,000	63,000	68,000
Current Assets	8,296,000	7,254,000	6,275,000	6,050,000
Other Current Assets			1,000	29,000	10,679
Hedging Assets Current	3,000	0	6,000	1,000
Restricted Cash	11,000	9,000	8,000
Prepaid Assets	124,000	94,000	86,000	82,000
Inventory	21,000	26,000	19,000
Other Inventories		26,000	19,000
Receivables	2,370,000	1,655,000	1,155,000	885,000
Other Receivables	306,000	254,000	206,000	124,000
Taxes Receivable	143,000	81,000	56,000	36,000
Accrued Interest Receivable	39,000	19,000	15,000	16,000
Loans Receivable	1,461,000	1,021,000	672,000	209,000
Accounts Receivable	421,000	280,000	206,000	500,000
Allowance For Doubtful Accounts Receivable	-35,000	-31,000	-36,000	-49,425
Gross Accounts Receivable	456,000	311,000	242,000	500,357
Cash Cash Equivalents And Short Term Investments	5,767,000	5,470,000	5,000,000	5,053,000
Other Short Term Investments	4,233,000	3,981,000	3,595,000	3,404,000
Cash And Cash Equivalents	1,534,000	1,489,000	1,405,000	1,649,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,007,000	1,597,000	905,000	-186,000
Issuance Of Capital Stock				0	1,541,168
Capital Expenditure	-26,000	-19,000	-39,000	-50,000
Interest Paid Supplemental Data	1,000	1,000	1,000	1,000
Income Tax Paid Supplemental Data	194,000	116,000	50,000	27,000
End Cash Position	1,545,000	1,498,000	1,413,000	1,649,000
Beginning Cash Position	1,498,000	1,413,000	1,649,000	2,503,000
Effect Of Exchange Rate Changes	15,000	-6,000	4,000	-17,000
Changes In Cash	32,000	91,000	-240,000	-837,000
Financing Cash Flow	-811,000	61,000	60,000	18,000
Cash Flow From Continuing Financing Activities	-811,000	61,000	60,000	18,000
Net Other Financing Charges	-1,043,000
Proceeds From Stock Option Exercised	232,000	61,000	60,000	18,000
Net Common Stock Issuance				0	1,541,168
Common Stock Issuance				0	1,541,168
Investing Cash Flow	-1,190,000	-1,586,000	-1,244,000	-719,000
Cash Flow From Continuing Investing Activities	-1,190,000	-1,586,000	-1,244,000	-719,000
Net Other Investing Changes	-521,000	-461,000	-559,000	-159,000
Net Investment Purchase And Sale	-488,000	-939,000	-251,000	1,879,000
Sale Of Investment	6,552,000	7,457,000	5,590,000	6,890,000
Purchase Of Investment	-7,040,000	-8,396,000	-5,841,000	-5,011,000
Net Business Purchase And Sale	-155,000	-167,000	-395,000	-2,389,000
Purchase Of Business	-155,000	-167,000	-395,000	-2,389,000
Net PPE Purchase And Sale	-26,000	-19,000	-39,000	-50,000
Purchase Of PPE	-26,000	-19,000	-39,000	-50,000
Operating Cash Flow	2,033,000	1,616,000	944,000	-136,000
Cash Flow From Continuing Operating Activities	2,033,000	1,616,000	944,000	-136,000
Change In Working Capital	-117,000	-166,000	195,000	-99,000
Change In Other Working Capital	19,000	26,000	60,000	32,000
Change In Other Current Assets	-38,000	-72,000	-50,000	-31,000
Change In Payables And Accrued Expense	262,000	110,000	69,000	28,000
Change In Prepaid Assets					-266,077
Change In Receivables	-360,000	-230,000	116,000	-128,000
Changes In Account Receivables	-360,000	-230,000	116,000	-128,000
Other Non Cash Items	-49,000	-94,000	-158,000	-121,000
Stock Based Compensation	449,000	430,000	615,000	549,000
Provisionand Write Offof Assets	230,000	148,000	80,000	74,000
Asset Impairment Charge	13,000	0	1,378,000	84,000
Deferred Tax	-14,000	78,000	-1,000	-187,000
Deferred Income Tax	-14,000	78,000	-1,000	-187,000
Depreciation Amortization Depletion	31,000	36,000	70,000	93,000
Depreciation And Amortization	31,000	36,000	70,000	93,000
Amortization Cash Flow		14,000
Amortization Of Intangibles		14,000
Depreciation		22,000
Operating Gains Losses	259,000	-835,000	-1,367,000	2,931,000
Earnings Losses From Equity Investments	193,000	-854,000	-1,361,000	2,919,000
Gain Loss On Investment Securities	123,000
Net Foreign Currency Exchange Gain Loss	-57,000	19,000	-6,000	12,000
Net Income From Continuing Operations	1,231,000	2,019,000	132,000	-3,460,000

These metrics estimate what Shopify Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$15.28

Margin of Safety

Market Cap ÷ Company Value

1.00

P/B Ratio

11.55

Warren's Owner Earnings

$1.3B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

2/7 — Speculative Investor

✅ Adequate Size

$11.6B

vs > $1.5B revenue

✅ Strong Financial Condition

5.96x

vs Current Ratio > 2.0x

❌ Earnings Stability

1 loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

❌ Earnings Growth

-31.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

135.7x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

11.55x P/B (P/E×P/B: 1567.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$5.39

Trading at 23.7x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$17.16

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	2.1%	0.9%	29.5%	N/A	N/A
Repurchase of Capital Stock	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	$2.0B ▲	$1.6B ▲	$905M ▲	-$186M •	N/A •
Warren's Owner Earnings	$1.3B	$2.1B	$241M	-$3.3B	N/A

Peers & Industry

No auto-detected peers for Software - Application. You can manually compare SHOP against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.19%

Low — management has little skin in the game

Return on Equity (ROE)

9.1%

Adequate — returns are moderate

Return on Assets (ROA)

8.1%

Strong — management uses assets efficiently

Debt Trend YoY

-83.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Tobias Lutke

Founder, Chairman, CEO and Head of R&D

Age 44

Pay: $1

0.000% of net income

Harley Finkelstein

President

Age 42

Pay: $929,563

0.076% of net income

Jessica Rose Hertz

Chief Operating Officer

Age 43

Pay: $1,000,000

0.081% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	4.14%	50,670,627
FMR, LLC	3.93%	48,003,077
Capital World Investors	3.91%	47,822,705
Capital International Investors	3.14%	38,343,155
JPMORGAN CHASE & CO	2.73%	33,418,297
BAILLIE GIFFORD & CO	2.55%	31,206,232
Morgan Stanley	2.16%	26,453,143
Price (T.Rowe) Associates Inc	1.92%	23,531,422

⚠️ Very high beta — extreme price volatility

Risk Analysis

Beta (Market Risk)

2.64

High volatility — moves more than the market

Short Interest

1.8% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.01x

Conservative balance sheet — low financial risk

Current Ratio