Shopify Inc Ranks High in Growth Stock Analysis

Shopify Inc receives a strong growth model rating of 77% based on its fundamentals, signaling positive investor interest. This rating suggests a favorable outlook for the stock's future performance.

Date: 10-03-2025

AI Rating: 6

Analysis of Shopify Inc

Shopify Inc has been evaluated using the P/B Growth Investor model, scoring 77%. This indicates a favorable assessment of the stock's underlying fundamentals and valuation. A rating of 80% or higher typically shows strong investor interest, while a score of 70% suggests a more cautious viewpoint.

Several crucial factors were evaluated:

BOOK/MARKET RATIO:	PASS
RETURN ON ASSETS:	PASS
CASH FLOW FROM OPERATIONS TO ASSETS:	PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS:	PASS
RETURN ON ASSETS VARIANCE:	FAIL
SALES VARIANCE:	FAIL
ADVERTISING TO ASSETS:	PASS
CAPITAL EXPENDITURES TO ASSETS:	PASS
RESEARCH AND DEVELOPMENT TO ASSETS:	PASS

The strong points include the book-to-market ratio, return on assets, cash flow from operations, and capital expenditures, which all passed the strategy's tests. However, the concerns arise with the return on assets variance and sales variance, which failed the criteria.

This analysis suggests that while Shopify holds several positive investment attributes, investors should be cautious due to identified weaknesses in sales and return on assets variability. Given these factors, the outlook for Shopify could potentially fluctuate based on future performance against these areas of concern.

Stocks: SHOP