Shopify Inc. cash flow to debt ratio of 1.08K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Shopify Inc.'s free cash flow has increased 25.67% from $1.60B last year to $2.01B, signaling increasing performance

Shopify Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability.

Shopify Inc.'s debt has decreased relative to shareholder equity from 0.10 last year to 0.01 today, signaling strengthened financials

Shopify Inc. has a net cash position, so leverage is healthy.

Shopify Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Shopify Inc.'s profit margin has decreased (36.09%) in the last year from 22.74% to 14.53%, signaling decreasing performance

Shopify Inc.'s short-term assets of $8.30B exceed its short-term liabilities of $1.39B

Shopify Inc.'s return on assets of 13.32% is higher than the 5.00% threshold, indicating efficient asset utilization

Shopify Inc.'s return on equity of 15.06%, is higher than 15.00%, indicating good performance

Shopify Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Shopify Inc. had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Shopify Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Shopify Inc. has a free cash flow yield of 1.00%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Shopify Inc.'s yearly earnings has decreased 39.03% since last year from $2.02B to $1.23B, signaling decreasing performance

Shopify Inc.'s yearly revenue has increased 30.14% since last year from $8.88B to $11.56B, signaling increasing performance

ROIC 11.66% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Shopify Inc.'s 3-year revenue CAGR of 27.31% is positive, indicating growing revenue over the past 3 years

Shopify Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Shopify Inc. had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Shopify Inc. is overvalued relative to its fair value price of 28.30 based on Discounted Cash Flow model

Shopify Inc. has an earnings yield of 0.96%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Shopify Inc. is overvalued relative to its fair value price of 8.98 based on EBITDA multiple model

Shopify Inc. has an EV/EBITDA ratio of 127.14x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Shopify Inc. is overvalued relative to its fair value price of 10.18 based on Earnings Fair Value model

Shopify Inc. has a PEG-ratio over 1 which is considered overvalued

Shopify Inc. has a price-to-book ratio of 15.85x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Shopify Inc. has a price-to-sales ratio of 15.15x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue