Shopify Inc. (SHOP.TO) stock analysis

In our weekly check, Shopify Inc. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 5.

About Shopify Inc.

Shopify Inc. is a Technology company (Software - Application) based in Canada, listed on TSX as SHOP.TO.

What our checks show for SHOP.TO

Red flags

• The net margin fell by 48.5 points over 5 years, to 14.7%: the company keeps less of each sale as profit.
• The gross margin fell by 6.1 points, to 47.7%: costs are rising faster than prices.
• The price swings a lot: 57.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Beta 2.43: the stock usually moves more than the market, both up and down.

Warning signs

• Earnings per share fell 18.1% a year over the last 3 years.
• Recovering from its deepest fall took about 2.9 years.

Strengths

• Debt is low: 0.01x equity.
• Operating cash flow is 1.22x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 37.5% a year over the next years.
• Analysts expect revenue to grow about 26.3% a year over the next years.
• Analysts expect the net margin to improve by 3.6 points from today's 14.7%.
• Revenue grew 33.3% a year over the last 3 years.

Next earnings report: 2026-11-03

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Questions

What grade does Shopify Inc. (SHOP.TO) have?

In our weekly check, Shopify Inc. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SHOP.TO stock?

This week's biggest flags for Shopify Inc.: Margins falling, Gross margin falling, Very volatile. In total 7 of 22 checks show a warning or a red flag.

What does Shopify Inc. do?

Shopify Inc. is a Technology company (Software - Application) based in Canada, listed on TSX as SHOP.TO.

When does Shopify Inc. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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