Shopify Stock Analysis

SHOP
 Stock
  

USD 37.15  6.25  14.40%   

The recent price roll up of Shopify created some momentum for insiders as it was traded today as low as 36.73 and as high as 39.96 per share. The company executives may have good odds in positioning the company resources to exploit market volatility in January. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.44. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Shopify partners.
Additionally, take a look at World Market Map.
  
The Shopify stock analysis report makes it easy to digest most publicly released information about Shopify and get updates on important government artifacts, including earning estimates, SEC corporate filings, and announcements. Shopify Stock analysis module also helps to analyze the Shopify price relationship with some important fundamental indicators such as market cap and management efficiency.

Shopify Stock Analysis Notes

About 65.0% of the company shares are owned by institutional investors. The company has Price/Earnings (P/E) ratio of 282.85. Shopify had not issued any dividends in recent years. The entity had 10:1 split on the 29th of June 2022. 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. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada. Shopify operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 10000 people. To find out more about Shopify contact Tobias Lutke at 613 241 2828 or learn more at https://www.shopify.com.

Shopify Investment Alerts

Many investors view ongoing market volatility as an opportunity to purchase more stocks at a favorable price or short it to generate a bearish trend profit opportunity. If you are one of those investors, make sure you clearly understand the position you are entering. Shopify's investment alerts are automatically generated signals that are significant enough to either complement your investing judgment regarding Shopify or challenge it. These alerts can help you understand what you are buying and avoid costly mistakes.
Shopify is way too risky over 90 days horizon
Shopify appears to be risky and price may revert if volatility continues
About 65.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: Jim Cramer explains why he likes the Shopify stock - Invezz

Shopify Upcoming and Recent Events

Earnings reports are used by Shopify to provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Every quarterly earnings report provides investors with three things: an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Shopify previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
Upcoming Quarterly Report3rd of May 2017
Next Financial Report2nd of August 2017
Next Fiscal Quarter End31st of March 2017
Next Fiscal Year End21st of February 2018
Last Quarter Report31st of December 2016
Last Financial Announcement31st of March 2016

Shopify Largest EPS Surprises

Earnings surprises can significantly impact Shopify's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2016-11-02
2016-09-30-0.03-0.020.0133 
2021-02-17
2020-12-310.130.160.0323 
2016-05-04
2016-03-31-0.09-0.060.0333 
View All Earnings Estimates

Shopify Thematic Classifications

In addition to having Shopify stock in your portfolios, you can add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your favorite investment opportunity, you can then obtain an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility. If you are a result-oriented investor, you can benefit from optimizing one of our existing themes to build an efficient portfolio against your specific investing outlook.
Tech Growth
Large and mid-sized technology companies, funds, and technology-based ETFs that are considered growing

Shopify Market Capitalization

The company currently falls under 'Large-Cap' category with current market capitalization of 54.79 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Shopify's market, we take the total number of its shares issued and multiply it by Shopify's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities.

Shopify Profitablity

Shopify's profitability indicators refer to fundamental financial ratios that showcase Shopify's ability to generate income relative to its revenue or operating costs. If, let's say, Shopify is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Shopify's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Shopify's profitability requires more research than a typical breakdown of Shopify's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Profit Margin (PM) of (0.61) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.08) %, which suggests for every $100 dollars of sales, it generated a net operating loss of 0.0.
Last ReportedProjected for 2022
Return on Average Assets(0.09) (0.09) 
Return on Average Equity(0.11) (0.12) 
Return on Invested Capital(0.16) (0.18) 
Return on Sales(0.10) (0.11) 

Management Efficiency

The entity has return on total asset (ROA) of (0.0199) % which means that it has lost $0.0199 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of (0.3198) %, meaning that it created substantial loss on money invested by shareholders. Shopify management efficiency ratios could be used to measure how well shopify manages its routine affairs as well as how well it operates its assets and liabilities. As of 2nd of December 2022, Return on Average Assets is likely to drop to -0.09. In addition to that, Return on Average Equity is likely to drop to -0.12. Shopify Total Liabilities is very stable at the moment as compared to the past year. Shopify reported last year Total Liabilities of 72.07 Million. As of 2nd of December 2022, Current Liabilities is likely to grow to about 64.6 M, while Liabilities Non Current is likely to drop about 9.9 M.
Last ReportedProjected for 2022
Book Value per Share 4.40  3.59 
Enterprise Value over EBIT(84.60) (91.28) 
Enterprise Value over EBITDA(140.30) (151.38) 
Price to Book Value 9.65  10.58 
Tangible Assets Book Value per Share 5.02  4.14 
Enterprise ValueB2.7 B
Tangible Asset Value421.8 M455.1 M

Technical Drivers

As of the 2nd of December, Shopify has the Risk Adjusted Performance of 0.1853, coefficient of variation of 846.25, and Semi Deviation of 3.72. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Shopify, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Shopify, which can be compared to its competition. Please validate Shopify variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Shopify is priced more or less accurately, providing market reflects its prevalent price of 37.15 per share. Given that Shopify has jensen alpha of 0.3542, we advise you to double-check Shopify's current market performance to make sure the company can sustain itself at a future point.

Shopify Price Movement Analysis

The output start index for this execution was twenty-three with a total number of output elements of thirty-eight. The Triangular Moving Average shows Shopify double smoothed mean price over a specified number of previous prices (i.e., averaged twice).
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Shopify Technical and Predictive Indicators

Shopify Forecast Models

Shopify time-series forecasting models is one of many Shopify's stock analysis techniquest aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Shopify's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

About Shopify Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Shopify prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Shopify shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas, a specific sector, or an individual Stock such as Shopify. By using and applying Shopify Stock analysis, traders can create a robust methodology for identifying Shopify entry and exit points for their positions.
Last ReportedProjected for 2022
EBITDA Margin(0.06) (0.07) 
Gross Margin 0.62  0.69 
Profit Margin(0.10) (0.11) 

Current Shopify Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Shopify analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Shopify analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
59.07Buy14Odds
Shopify current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most Shopify analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Shopify stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Shopify, talking to its executives and customers, or listening to Shopify conference calls.
Shopify Analyst Advice Details

Shopify Stock Analysis Indicators

Shopify stock analysis indicators help investors evaluate how Shopify stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading Shopify shares will generate the highest return on investment. By understating and applying Shopify stock analysis, traders can identify Shopify position entry and exit signals to maximize returns.
Begin Period Cash Flow2703597000.00
Logo U R LimglogosUSSHOP.png
Common Stock Shares Outstanding1195697050.00
Total Stockholder Equity11133341000.00
DescriptionShopify 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 companys platform enables merchants to displays, manages, markets, and sel
Total Cashflows From Investing Activities-2347790000.00
Tax Provision225933000.00
Quarterly Earnings Growth Y O Y4.858
Property Plant And Equipment Net301988000.00
Retained Earnings2938142000.00
Cash And Short Term Investments7768093000.00
Cash2502992000.00
CodeSHOP
Accounts Payable284010000.00
Net Debt-1329505000.00
50 Day M A31.9328
Total Current Liabilities702733000.00
Currency CodeUSD
Other Operating Expenses4343213000.00
Non Current Assets Total4800852000.00
Forward Price Earnings1428.5714
Non Currrent Assets Other205804000.00
Additionally, take a look at World Market Map. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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When running Shopify price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.
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Is Shopify's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shopify. If investors know Shopify will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shopify listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Shopify is measured differently than its book value, which is the value of Shopify that is recorded on the company's balance sheet. Investors also form their own opinion of Shopify's value that differs from its market value or its book value, called intrinsic value, which is Shopify's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shopify's market value can be influenced by many factors that don't directly affect Shopify's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shopify's value and its price as these two are different measures arrived at by different means. Investors typically determine Shopify value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shopify's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.