Shopify Inc. SHOP.TO TSX

Shopify Inc. (SHOP.TO) has shown exceptional revenue growth over the past 3 years, expanding from $5.6B to $11.8B (average +28.1%/yr). Net income reached $1.3B, reflecting exceptional earnings expansion at +498.5%/yr on average. The net profit margin is 10.7%, which is moderate. the company was profitable in 3 out of the last 4 years tracked. The gross margin is 47.9% (moderate), with a -1.3pp trend over the period. With a $153B market cap and MOAT composite score of 79/100, the company has a strong competitive position.

Criteria proven by this page:

• GROWTH (100/100, Pass) — proving strong growth momentum
• PAST (75/100, Partial) — profitability has been inconsistent. Looking at the full 14-year history, the company was profitable in 5 of 14 years — a mixed long-term record
• INCOME (55/100, Partial) — the company is profitable but margin is below 15%
• MOAT (79/100, Pass) — strong gross margins and market scale prove a durable competitive advantage

Overall SharesGrow Score: 68/100 with 3/7 criteria passed.