Does Shopify Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Shopify Inc. (SHOP) 57.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 84, returns on capital 18, balance-sheet safety 100, capital discipline 38.

Is SHOP stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $5.96 per share versus a recent price of $123.56 — 1975% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has SHOP's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 57.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Shopify Inc.

SHOP · Technology · $161.2B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power84

Median gross margin 49.5% over 4y, very stable.

Returns on capital18

Median ROIC -0.1%, above the 9% hurdle in 50% of years.

Balance-sheet safety100

Net cash position — no leverage risk.

Capital discipline38

Owner earnings trend unclear, share count growing (dilution).

Margin of safety

Above valueOn sale

1975% above value

Owner earnings (normalized): $699.5M
Est. intrinsic value / share: $5.96
Recent price: $123.56
Discount to value: 1975% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

5 years of fundamentals

The business, in plain English

Shopify Inc. booked $11.6B of revenue in FY2025 in the Technology sector and kept 48.1% of it as gross profit — a solid-margin business by that measure. After every other cost, 10.7% of each revenue dollar reached the bottom line.

It earned 10.0% on invested capital in FY2025, with a median of −0.1% across 4 filed years. The Returns on Capital filter above scores it 18/100.

SHOP's filings don't disclose total debt in a form the methodology can use, so leverage is treated as unmeasured — never assumed to be zero.

Put together: Balance-Sheet Safety is the strongest of the four filters (100/100) and Returns on Capital the weakest (18/100), which is how SHOP lands at 58/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$11.6B FY2025

Gross marginRevenue kept after cost of goods48.1% FY2025

Return on invested capitalOperating profit on the capital employed10.0% FY2025

Owner earningsCash an owner could take out$1.2B FY2025

Gaps in a line mean that item isn’t in SHOP’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale57.9 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — SHOP has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#145 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#143FISV FISERV INC58.1 out of 100, Shallow moatShallow moat
#144MMS Maximus, Inc.58.0 out of 100, Shallow moatShallow moat
#146NUTX NUTEX HEALTH INC.57.8 out of 100, Shallow moatShallow moat
#147CXM Sprinklr, Inc.57.7 out of 100, Shallow moatShallow moat

Compare SHOP with its nearest peers →All Technology companies on the Index →

Common questions about SHOP

Does Shopify Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Shopify Inc. (SHOP) 57.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 84, returns on capital 18, balance-sheet safety 100, capital discipline 38.
Is SHOP stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $5.96 per share versus a recent price of $123.56 — 1975% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has SHOP's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 57.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell SHOP. See the disclaimer.