FCF Yield

The current FCF Yield of 1.2% means that for every $100 invested in SHOP, the company generates $1.20 in free cash flow (the cash left after operating and capital expenses) over the most recent twelve months.

That yield is well below the 4.2% sector median, placing SHOP in the 18th percentile among its peers — only 18% of comparable companies have a lower FCF Yield. Over the last eight quarters, the metric has been increasing overall, though the past quarter saw a 7.7% decline and year-over-year data is not available. The combination of a low absolute yield (far below the median) with a long-term improving but recently weakening trend suggests the stock may still be priced for growth rather than current cash generation, carrying risk if cash flow growth stalls. This low yield and poor percentile rank do not support a bullish view, but the upward long-term trend tempers that concern. Overall, the metric aligns with the NEUTRAL verdict by showing neither a clear bargain nor a severe cash-flow problem.

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