SHOPBULLISH

SHOP Return on Equity (ROE) Analysis

15.5%

Updated 118h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity, so a 15.5% ROE means SHOP earns $0.155 per dollar of invested equity.

Sector Performance

57th percentile

SHOP

15.5%

Sector Median

13.3%

Sector Avg

16.6%

Prior Period

11.3%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity, so a 15.5% ROE means SHOP earns $0.155 per dollar of invested equity.

This sits above the sector median of 13.5%, placing SHOP in the 56th percentile among sector peers, which is a slightly better-than-average profitability position. The metric's trend direction over the last 8 quarters is N/A, and the year-over-year change is also N/A, but the quarter-over-quarter change is +37.2%, showing a sharp recent acceleration from the prior 11.3% ROE. Because the current ROE is above the sector median and just jumped by more than a third quarter over quarter, the combination implies improving capital efficiency without yet signaling extreme overvaluation or risk. This metric supports the overall BULLISH verdict, as the rising ROE strengthens the case that SHOP is converting shareholder funds into profits more effectively than most peers.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SHOP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are SHOP's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: ITW (104.6%), KMB (104.9%), NTAP (106.7%), IT (113.6%), FTNT (117.4%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.