Is SHOPIFY INC. (SHOP) Halal?

NASDAQ Technology Canada $146.0B
✓ HALAL
Confidence: 95/100
SHOPIFY INC. (SHOP) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.1% against the AAOIFI threshold of 30%, SHOPIFY INC. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.1%
/ 30%
3.4%
/ 30%
1.4%
/ 30%
2.86%
/ 5%
✓ HALAL
DJIM 0.1%
/ 33%
3.4%
/ 33%
1.4%
/ 33%
2.86%
/ 5%
✓ HALAL
MSCI 1.2%
/ 33%
38.0%
/ 33%
15.6%
/ 33%
2.86%
/ 5%
✗ NOT HALAL
S&P 0.1%
/ 33%
3.4%
/ 33%
1.4%
/ 33%
2.86%
/ 5%
✓ HALAL
FTSE 1.2%
/ 33%
38.0%
/ 33%
15.6%
/ 50%
2.86%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
119.0
Forward: 48.6
EPS
$0.94
P/B Ratio
10.8
EV/EBITDA
72.7
EV: $140.2B
Revenue
$11.6B
Growth: 30.6%
Beta
2.9
High volatility
Current Ratio
6.0

Profitability

Gross Margin 48.1%
Operating Margin 20.3%
Net Margin 10.7%
Return on Equity (ROE) 9.8%
Return on Assets (ROA) 8.1%

Cash Flow & Balance Sheet

Operating Cash Flow$2.0B
Free Cash Flow$2.0B
Total Debt$188M
Debt-to-Equity1.4
Current Ratio6.0
Total Assets$15.2B

Price & Trading

Last Close$115.43
50-Day MA$126.01
200-Day MA$140.87
Avg Volume11.4M
Beta2.9
52-Week Range
$69.84
$182.19

About SHOPIFY INC. (SHOP)

CEO
Mr. Tobias Lutke
Employees
7,600
Sector
Technology
Industry
Software - Application
Country
Canada
Exchange
NASDAQ
Market Cap
$146.0B
Currency
USD

Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.

Purification Calculator

As a halal stock with 2.86% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is SHOPIFY INC. (SHOP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SHOPIFY INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SHOPIFY INC.'s debt ratio?

SHOPIFY INC.'s debt ratio is 0.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.2%.

Does SHOPIFY INC. require dividend purification?

Yes, SHOPIFY INC. has an impermissible income ratio of 2.86%, which means 2.86% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are SHOPIFY INC.'s key financial metrics?

SHOPIFY INC. has a market capitalization of $146.0B, trailing P/E ratio of 119.0, and revenue of $11.6B. The company maintains a gross margin of 48.1% and a net margin of 10.7%. Return on equity stands at 9.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.