Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin16.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin10.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.2 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital$6.9B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$2.0B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income2.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.3B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit48.1%
Operating Margin16.3%
Net Margin10.7%
Company Info
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
0.94▼
1.56▲
0.10▲
-2.73•
N/A
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
1,303,904
1,294,580
1,295,511
1,266,268
Basic Average Shares
1,303,904
1,294,580
1,281,555
1,266,268
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
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $13.5B
Warren's Owner Earnings
$1.3B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$11.6B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
5.96x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
1 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $0.10 to $0.94 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+844.1% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $11.6Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 5.96xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 1 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $0.10 to $0.94 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what SHOP is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
10.8%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
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 this industry. 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
No management data available.
Risk Analysis
SHOP (SHOP) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 48.1%. Operating margin: 16.3%. Net margin: 10.7%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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