Shopify

SHOP

Software - Application · Technology

Price

$123.56

-1.50 (-1.20%)

Market Cap

$160.34B

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+2.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.27B (2021) → 1.30B (2025)

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 invent

Winston Score History

Politician Trades

5 trades / 12mo

3 Congressional buys and 2 sells on SHOP in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-100.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+15.1% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$1.5B/ year

↑ Rising (+12% vs prior year)

13.3% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

6.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.8B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Shopify's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

N/A

Data not available

Operating Margin

N/A

Data not available

ROCE

3.0%

Weak — 3.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-2.0%

Shrinking sales (-2.0% YoY)

EPS YoY

-16.9%

Earnings shrinking (-16.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

162%

Turns 162% of profit into real cash

FCF Margin

23.1%

Converts sales into free cash efficiently (23.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

120.0x

Expensive — P/E 120.0

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+80.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (120.0 → 39.4)

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Dividends

Not applicable for this business.

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