Shopify (BUE:SHOP) Beneish M-Score: -1.96 (As of Jun. 24, 2026)


What is Shopify Beneish M-Score?

Shopify BUE:SHOP 83 Beneish M-Score is -1.96 as of Jun. 24, 2026. GuruFocus rates BUE:SHOP with a GF Score™ of 83/100. The stock has 2 warning signs investors should review. Among 2,633 Software companies, Shopify ranks worse than 77.29% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shopify's Beneish M-Score or its related term are showing as below:

BUE:SHOP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75   Med: -1.96   Max: -0.15
Current: -1.96

During the past 13 years, the highest Beneish M-Score of Shopify was -0.15. The lowest was -2.75. And the median was -1.96.

Shopify Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Shopify's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Shopify Beneish M-Score Chart

Shopify Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.81 -2.44 -2.47 -2.02 -2.00

Shopify Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.92 -1.93 -2.10 -2.00 -1.96

BUE:SHOP vs CRM, UBER, NOW: Beneish M-Score Comparison

For the Software - Application subindustry, Shopify's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shopify Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Shopify's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shopify's Beneish M-Score falls into.


Shopify Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Shopify for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0873+0.528 * 1.0409+0.404 * 0.8973+0.892 * 1.8184+0.115 * 0.9886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9183+4.679 * 0.000168-0.327 * 0.659
=-1.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ARS3,559,932.00 Mil.
Revenue was 4432436.937 + 5329867.565 + 3862187.272 + 3181784.993 = ARS16,806,276.77 Mil.
Gross Profit was 2161686.91 + 2457370.857 + 1888995.251 + 1545777.635 = ARS8,053,830.65 Mil.
Total Current Assets was ARS11,878,092.04 Mil.
Total Assets was ARS19,744,618.92 Mil.
Property, Plant and Equipment(Net PPE) was ARS192,957.82 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS40,310.10 Mil.
Selling, General, & Admin. Expense(SGA) was ARS3,014,759.35 Mil.
Total Current Liabilities was ARS1,916,994.02 Mil.
Long-Term Debt & Capital Lease Obligation was ARS227,913.95 Mil.
Net Income was -812380.398 + 1078456.318 + 358515.274 + 1075633.285 = ARS1,700,224.48 Mil.
Non Operating Income was -1687681.824 + 98701.251 + -358515.274 + 714714.39 = ARS-1,232,781.46 Mil.
Cash Flow from Operations was 672555.889 + 1052329.516 + 696660.362 + 508135.812 = ARS2,929,681.58 Mil.
 Total Receivables was ARS1,800,536.39 Mil.
Revenue was 2515847.172 + 2840120.028 + 2054980.91 + 1831297.474 = ARS9,242,245.58 Mil.
Gross Profit was 1246197.18 + 1365520.014 + 1062658.953 + 935797.487 = ARS4,610,173.63 Mil.
Total Current Assets was ARS7,936,645.00 Mil.
Total Assets was ARS14,284,894.96 Mil.
Property, Plant and Equipment(Net PPE) was ARS160,971.58 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS33,167.30 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,805,356.97 Mil.
Total Current Liabilities was ARS2,141,668.21 Mil.
Long-Term Debt & Capital Lease Obligation was ARS213,207.39 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3559932.001 / 16806276.767) / (1800536.387 / 9242245.584)
=0.211822 / 0.194816
=1.0873

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(4610173.634 / 9242245.584) / (8053830.653 / 16806276.767)
=0.498815 / 0.479216
=1.0409

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (11878092.044 + 192957.822) / 19744618.924) / (1 - (7936644.998 + 160971.578) / 14284894.96)
=0.388641 / 0.433134
=0.8973

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=16806276.767 / 9242245.584
=1.8184

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(33167.295 / (33167.295 + 160971.578)) / (40310.104 / (40310.104 + 192957.822))
=0.170843 / 0.172806
=0.9886

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(3014759.348 / 16806276.767) / (1805356.967 / 9242245.584)
=0.179383 / 0.195337
=0.9183

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((227913.95 + 1916994.019) / 19744618.924) / ((213207.387 + 2141668.207) / 14284894.96)
=0.108633 / 0.164851
=0.659

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1700224.479 - -1232781.457 - 2929681.579) / 19744618.924
=0.000168

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Shopify has a M-score of -1.56 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.96 mean?
Shopify (BUE:SHOP) has a Beneish M-Score of -1.96 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shopify and its competitors. According to the industry distribution chart, Shopify ranks #2035 out of 2633 companies in the Software industry, placing it in the top 77.3%.
Is Shopify's Beneish M-Score too high?
Shopify's current Beneish M-Score is -1.96. Based on the distribution chart, Shopify ranks #2035 out of 2633 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Shopify has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Shopify's Beneish M-Score compare to CRM and UBER?
According to the Software industry distribution chart, Shopify ranks #2035 out of 2633 companies for Beneish M-Score. This places Shopify in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shopify and its competitors. Shopify's current Beneish M-Score is -1.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shopify stock overvalued right now?
Shopify (BUE:SHOP) has a current Beneish M-Score of -1.96. The current Beneish M-Score is -1.96. Shopify's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Shopify (BUE:SHOP), the current Beneish M-Score is -1.96 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Shopify Business Description

Address 151 O\'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.