Is SHOP a good stock to buy right now?

Based on our 6-factor quantitative model, SHOPIFY INC. (SHOP) receives a "Reduce" rating with a composite score of 39.6/100. It is ranked #3,009 out of 4,446 stocks. Key factor scores: Quality 45/100, Value 42/100, Momentum 39/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for SHOP?

SHOPIFY INC. (SHOP) has a "Reduce" rating and 2-star score. The composite score of 39.6 ranks it #3,009 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is SHOP in?

SHOPIFY INC. operates in the Technology sector (Computer Software industry) with a market cap of $154.56 billion. It is classified as a large-cap stock.

Does SHOP pay a dividend?

SHOP does not currently pay a regular dividend. The company may be reinvesting profits for growth.

What is SHOP's P/E ratio?

SHOP has a trailing P/E ratio of 118.29x. The Technology sector average is 45.3x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is SHOP?

SHOP's quality factor score is 45/100. Gross margin: 48.1%. ROE: 36.5% vs sector average -1.4%. Margins are moderate to low, reflecting competitive market dynamics.

How is SHOP valued compared to peers?

SHOP's value factor score is 42/100 (higher = cheaper). Key multiples: P/E 118.3x, EV/EBITDA 26.0x. Valuation is roughly in line with peers.

What is SHOP's debt level?

SHOP's debt-to-equity ratio is 13%. Sector average: 43%. Low leverage suggests conservative financial management.

SHOP has a beta of 2.19, meaning it amplifies market moves. Stability score: 39/100.

Does SHOP have high short interest?

SHOP's short interest factor score is 38/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

SHOP Stock Analysis: Reduce (Score 39.6/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
SHOP	-1.41%	-6.31%	-14.36%	-31.17%	+30.91%	-	-	-
Industry Proxy XLK	+0.39%	+4.88%	+2.05%	-0.94%	-26.62%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-1.35%	-9.91%	-14.69%	-30.81%	+1.39%	-	-	-
Alpha vs Sector	-1.80%	-11.18%	-16.40%	-30.24%	+57.54%	-	-	-

Metric	SHOP	Benchmark
P/E Ratio	118.3x	+161%
EV/EBITDA	26.0x	+103%
Price / Book	11.3x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
VRSN VERISIGN INC/CA	56	79	59	40	30.7x	-41.1%	88.0%	50.6%	8.3%	-87.0x	$23.0B	VS
IHS IHS Holding Ltd	55	42	63	63	-	-616.0%	48.0%	-96.1%	-	365.0x	$2.8B	VS
LHX L3HARRIS TECHNOLOGIES, INC. /DE/	55	50	52	66	37.5x	9.0%	25.5%	8.1%	10.3%	110.0x	$66.1B	VS
ESP ESPEY MFG & ELECTRONICS CORP	53	48	44	71	25.8x	12.8%	29.0%	17.1%	-11.7%	66.0x	$169M	VS
NYAX Nayax Ltd.	52	38	46	78	-	-13.6%	44.6%	-1.8%	-	30.0x	$2.2B	VS
ESE ESCO TECHNOLOGIES INC	52	49	40	69	65.6x	7.4%	40.8%	10.4%	16.3%	9.0x	$7.6B	VS
INTT INTEST CORP	52	50	32	72	-	-3.2%	43.1%	-3.1%	-22.8%	46.0x	$179M	VS
KARO Karooooo Ltd.	49	50	72	53	-	117.1%	69.5%	20.3%	-	10.0x	$1.6B	VS
MTC MMTec, Inc.	47	32	40	96	-	-1,370.8%	81.6%	-4,879.7%	-	120.0x	$136M	VS
CCLD CareCloud, Inc.	47	38	71	60	12.4x	18.5%	48.0%	9.6%	10.6%	47.0x	$154M	VS
SHOP SHOPIFY INC.	40	45	42	39	118.3x	36.6%	48.1%	10.7%	31.5%	13.0x	$154.6B

Key Ratio	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Gross Margin %	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	1.6%	1.1%	0.6%	1.1%
Operating Margin %	0.1%	0.1%	0.1%	-0.2%	-0.1%	0.1%	0.0%	-0.3%	-0.2%	-0.1%	-0.2%
EBITDA Margin %	0.1%	0.1%	0.1%	0.0%	-0.6%	0.7%	0.1%	-0.2%	-0.1%	-0.0%	-0.1%
Net Margin %	0.1%	0.1%	0.2%	0.0%	-0.6%	0.6%	0.1%	-0.2%	-0.2%	-0.1%	-0.2%
FCF Margin %	-10.2%	-	-	12.8%	-3.3%	10.5%	13.1%	0.9%	-1.7%	-1.8%	-2.5%
ROE %	0.4%	0.1%	0.2%	0.0%	-0.4%	0.3%	0.0%	-0.0%	-0.0%	-0.0%	-0.1%
ROA %	0.3%	0.1%	0.1%	0.0%	-0.3%	0.2%	0.0%	-0.0%	-0.0%	-0.0%	-0.1%
ROIC %	9.7%	8.6%	7.3%	-13.1%	-8.7%	2.2%	1.6%	-4.7%	-4.3%	-4.5%	-9.0%

Key Ratio

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

Gross Margin %

0.5%

1.6%

1.1%

0.6%

1.1%

Operating Margin %

0.1%

-0.2%

-0.1%

0.1%

0.0%

-0.3%

-0.2%

-0.1%

-0.2%

EBITDA Margin %

0.1%

0.0%

-0.6%

0.7%

0.1%

-0.2%

-0.1%

-0.0%

-0.1%

Net Margin %

0.1%

0.2%

0.0%

-0.6%

0.6%

0.1%

-0.2%

-0.1%

-0.2%

FCF Margin %

-10.2%

12.8%

-3.3%

10.5%

13.1%

0.9%

-1.7%

-1.8%

-2.5%

ROE %

0.4%

0.1%

0.2%

0.0%

-0.4%

0.3%

0.0%

-0.0%

-0.1%

ROA %

0.3%

0.1%

0.0%

-0.3%

0.2%

0.0%

-0.0%

-0.1%

ROIC %

9.7%

8.6%

7.3%

-13.1%

-8.7%

2.2%

1.6%

-4.7%

-4.3%

-4.5%

-9.0%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$11.6B	$11.6B	$8.9B	$7.1B	$5.6B	$4.6B	$2.9B	$1.6B	$1.1B	$673M	$389M	$205M
	—	$6.0B	$4.4B	—	—	—	—	—	—	—	—	—
	$5.6B	$5.6B	$4.5B	$3.5B	$2.8B	$2.5B	$1.5B	$866M	$596M	$380M	$209M	$111M
Gross Margin	48.1%	48.1%	50.4%	49.8%	49.2%	53.8%	52.6%	164.5%	111.1%	56.5%	107.6%	55.2%
	—	$1.5B	$1.4B	$1.7B	$1.5B	$854M	$552M	$355M	$231M	$136M	$74M	$40M
Depreciation	—	—	—	$70M	$93M	$69M	$79M	$36M	$27M	$23M	$14M	$7M
Total Operating Expenses	—	$4.1B	$3.4B	—	—	—	—	—	—	—	—	—
	$1.5B	$1.5B	$1.1B	-$1.4B	-$822M	$269M	$90M	-$141M	-$92M	-$49M	-$37M	-$18M
EBIT	$1.5B	$1.5B	$1.1B	-$1.4B	-$822M	$269M	$90M	-$141M	-$92M	-$49M	-$37M	-$18M
EBITDA	$1.5B	$1.5B	$1.1B	$72M	-$3.6B	$3.2B	$305M	-$325M	-$134M	-$24M	-$46M	-$12M
Operating Margin	12.7%	12.7%	12.1%	-20.1%	-14.7%	5.8%	3.1%	-26.8%	-17.1%	-7.3%	-19.1%	-8.6%
EBITDA Margin	12.7%	12.7%	12.1%	1.0%	-64.4%	69.3%	10.4%	-20.6%	-12.5%	-3.6%	-11.8%	-5.7%
	—	—	—	—	$3M	$3M	$9M	$0	—	—	—	—
	—	$1.5B	$8.9B	—	—	—	—	—	—	—	—	—
Income Tax Expense	—	$278M	$209M	$53M	-$162M	$226M	-$79M	$29M	$0	—	—	—
	$1.2B	$1.2B	$2.0B	$132M	-$3.5B	$2.9B	$320M	-$125M	-$65M	-$40M	-$35M	-$19M
Net Margin	10.7%	10.7%	22.7%	1.9%	-61.8%	63.2%	10.9%	-15.8%	-18.0%	-5.9%	-18.2%	-9.2%
	$0.95	$0.95	$1.57	$0.10	$-2.73	$23.38	$2.67	$-1.10	$-0.61	$-0.42	$-0.42	$-0.30
Diluted EPS	$0.95	$0.94	$1.55	$0.10	$-2.73	$23.38	$2.67	$-1.10	$-0.61	$-0.42	$-0.42	$-0.30
Weighted Avg Basic	—	1.3B	1.3B	—	—	—	—	—	—	—	—	—
Weighted Avg Diluted	—	1.3B	1.3B	—	—	—	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$11.6B

$8.9B

$7.1B

$5.6B

$4.6B

$2.9B

$1.6B

$1.1B

$673M

$389M

$205M

—

$6.0B

$4.4B

—

$5.6B

$4.5B

$3.5B

$2.8B

$2.5B

$1.5B

$866M

$596M

$380M

$209M

$111M

Gross Margin

48.1%

50.4%

49.8%

49.2%

53.8%

52.6%

164.5%

111.1%

56.5%

107.6%

55.2%

—

$1.5B

$1.4B

$1.7B

$1.5B

$854M

$552M

$355M

$231M

$136M

$74M

$40M

Depreciation

—

$70M

$93M

$69M

$79M

$36M

$27M

$23M

$14M

$7M

Total Operating Expenses

—

$4.1B

$3.4B

—

$1.5B

$1.1B

-$1.4B

-$822M

$269M

$90M

-$141M

-$92M

-$49M

-$37M

-$18M

EBIT

$1.5B

$1.1B

-$1.4B

-$822M

$269M

$90M

-$141M

-$92M

-$49M

-$37M

-$18M

EBITDA

$1.5B

$1.1B

$72M

-$3.6B

$3.2B

$305M

-$325M

-$134M

-$24M

-$46M

-$12M

Operating Margin

12.7%

12.1%

-20.1%

-14.7%

5.8%

3.1%

-26.8%

-17.1%

-7.3%

-19.1%

-8.6%

EBITDA Margin

12.7%

12.1%

1.0%

-64.4%

69.3%

10.4%

-20.6%

-12.5%

-3.6%

-11.8%

-5.7%

—

$3M

$9M

—

$1.5B

$8.9B

—

Income Tax Expense

—

$278M

$209M

$53M

-$162M

$226M

-$79M

$29M

—

$1.2B

$2.0B

$132M

-$3.5B

$2.9B

$320M

-$125M

-$65M

-$40M

-$35M

-$19M

Net Margin

10.7%

22.7%

1.9%

-61.8%

63.2%

10.9%

-15.8%

-18.0%

-5.9%

-18.2%

-9.2%

$0.95

$1.57

$0.10

$-2.73

$23.38

$2.67

$-1.10

$-0.61

$-0.42

$-0.30

Diluted EPS

$0.95

$0.94

$1.55

$0.10

$-2.73

$23.38

$2.67

$-1.10

$-0.61

$-0.42

$-0.30

Weighted Avg Basic

—

1.3B

—

Weighted Avg Diluted

—

1.3B

—

SHOPIFY INC. (SHOP) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does SHOPIFY INC. Do?

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital. 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 headquartered in Ottawa, Canada. SHOPIFY INC. (SHOP) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Tobias A. Lütke and employs approximately 11,600 people, headquartered in OTTAWA, Ontario. With a market capitalization of $154.6B, SHOP is one of the prominent companies in the Technology sector.

SHOPIFY INC. (SHOP) Stock Rating — Reduce (April 2026)

As of April 2026, SHOPIFY INC. receives a Reduce rating with a composite score of 39.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.SHOP ranks #3,009 out of 4,446 stocks in our coverage universe. Within the Technology sector, SHOPIFY INC. ranks #341 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

SHOP Stock Price and 52-Week Range

SHOPIFY INC. (SHOP) currently trades at $111.20. The stock lost $1.18 (1.1%) in the most recent trading session. The 52-week high for SHOP is $182.19, which means the stock is currently trading -39.0% from its annual peak. The 52-week low is $69.84, putting the stock 59.2% above its annual trough. Recent trading volume was 9.0M shares, reflecting moderate market activity.

Is SHOP Overvalued or Undervalued? — Valuation Analysis

SHOPIFY INC. (SHOP) carries a value factor score of 42/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 118.29x, compared to the Technology sector average of 45.27x — a premium of 161%. The price-to-book ratio stands at 11.33x, versus the sector average of 3.16x. The price-to-sales ratio is 3.30x, compared to 1.06x for the average Technology stock. On an enterprise value basis, SHOP trades at 26.00x EV/EBITDA, versus 12.79x for the sector.

Overall, SHOP's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

SHOPIFY INC. Profitability — ROE, Margins, and Quality Score

SHOPIFY INC. (SHOP) earns a quality factor score of 45/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 36.5%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 32.4% versus the sector average of -1.0%.

On a margin basis, SHOPIFY INC. reports gross margins of 48.1%, compared to 50.9% for the sector. The operating margin is 12.7% (sector: -0.5%). Net profit margin stands at 10.7%, versus -1.5% for the average Technology stock. Revenue growth is running at 31.5% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

SHOP Debt, Balance Sheet, and Financial Health

SHOPIFY INC. has a debt-to-equity ratio of 13.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 5.96x, indicating strong short-term liquidity. Total debt on the balance sheet is $920M. Cash and equivalents stand at $2.41B.

SHOP has a beta of 2.19, meaning it is more volatile than the broader market — a $10,000 investment in SHOP would be expected to move 119.1% more than the S&P 500 on any given day. The stability factor score for SHOPIFY INC. is 39/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

SHOPIFY INC. Revenue and Earnings History — Quarterly Trend

In TTM 2026, SHOPIFY INC. reported revenue of $11.56B and earnings per share (EPS) of $0.95. Net income for the quarter was $1.23B. Gross margin was 48.1%. Operating income came in at $1.47B.

In FY 2025, SHOPIFY INC. reported revenue of $11.56B and earnings per share (EPS) of $0.95. Net income for the quarter was $1.23B. Gross margin was 48.1%. Revenue grew 30.1% year-over-year compared to FY 2024. Operating income came in at $1.47B.

In Q3 2025, SHOPIFY INC. reported revenue of $2.84B and earnings per share (EPS) of $0.20. Net income for the quarter was $264M. Gross margin was 48.9%. Operating income came in at $343M.

In Q2 2025, SHOPIFY INC. reported revenue of $2.68B and earnings per share (EPS) of $0.70. Net income for the quarter was $906M. Gross margin was 48.6%. Operating income came in at $291M.

Over the past 8 quarters, SHOPIFY INC. has demonstrated a growth trajectory, with revenue expanding from $5.60B to $11.56B. Investors analyzing SHOP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

SHOP Dividend Yield and Income Analysis

SHOPIFY INC. (SHOP) does not currently pay a dividend. This is common among growth-oriented companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

SHOP Momentum and Technical Analysis Profile

SHOPIFY INC. (SHOP) has a momentum factor score of 39/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 38/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

SHOP vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, SHOPIFY INC. (SHOP) ranks #341 out of 584 stocks based on the Blank Capital composite score. This places SHOP in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing SHOP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SHOP vs S&P 500 (SPY) comparison to assess how SHOPIFY INC. stacks up against the broader market across all factor dimensions.

SHOP Next Earnings Date

No upcoming earnings date has been announced for SHOPIFY INC. (SHOP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy SHOP? — Investment Thesis Summary

The quantitative profile for SHOPIFY INC. suggests caution. Momentum is weak at 39/100, a headwind for near-term performance. High volatility (stability score 39/100) increases portfolio risk.

In summary, SHOPIFY INC. (SHOP) earns a Reduce rating with a composite score of 39.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SHOP stock.

Related Resources for SHOP Investors

Explore more research and tools: SHOP vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare SHOP head-to-head with peers: SHOP vs IHS, SHOP vs VRSN, SHOP vs ESE.

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SHOPIFY INC. (SHOP) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does SHOPIFY INC. Do?

SHOPIFY INC. (SHOP) Stock Rating — Reduce (April 2026)

SHOP Stock Price and 52-Week Range

Is SHOP Overvalued or Undervalued? — Valuation Analysis

SHOPIFY INC. Profitability — ROE, Margins, and Quality Score

SHOP Debt, Balance Sheet, and Financial Health

SHOPIFY INC. Revenue and Earnings History — Quarterly Trend

SHOP Dividend Yield and Income Analysis

SHOP Momentum and Technical Analysis Profile

SHOP vs Competitors — Technology Sector Ranking and Peer Comparison

SHOP Next Earnings Date

Should You Buy SHOP? — Investment Thesis Summary

Related Resources for SHOP Investors

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