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Summary
- Shopify stocks grew by almost 170 per cent year-to-date (YTD).
- The ecommerce giant registered revenue from subscription solutions of US$ 245.3 million in Q3 2020, a 48 per cent gain year-over-year.
- Stocks of Nuvei have soared nearly 35 per cent since its listing on the Toronto Stock Exchange on September 18, 2020.
- Nuvei is among the TMX’s Top price performers, a list of stocks across the TSX and TSXV that have outperformed in the last 30 days.
Last year, nearly 80 per cent Canadians shopped online, said a survey conducted by Canada Post, the country’s largest national delivery service. Forty-eight per cent are thinking about spending primarily online this festive season. Amid the COVID uncertainty and regional shutdowns, thousands of merchants have moved to e-commerce channels. The largest online platforms are seeing an unprecedented merchant listing. Many of these merchants started their online journey for the first time due to COVID and are keen to participate in the festive season.
As per Statistics Canada, online retail sales for March to September increased from C$ 21.5 billion in 2019 to C$ 36.2 billion in 2020, a massive rise by C$ 14.7 Billion.
With the online shopping movement on the rise this festive season, we look at two stocks: ecommerce behemoth Shopify and fintech firm Nuvei.
Shopify Inc (TSX:SHOP)
Current Stock Price: C$ 1397.77
Shopify provides an e-commerce stage mainly to micro and small vendors. The company offers merchant solutions to facilitate e-commerce and comprise payments gateway, shipping, and Shopify Capital.
Shopify Stock Performance
The e-commerce stock has rocketed nearly 205 per cent since the pandemic-led crash on March 17. In the last six months, the tech stock has swelled approximately 36 per cent. The e-commerce stock gained almost 170 per cent year-to-date (YTD).
Shopify’s current market cap stands at C$ 153.85 billion, and its price-to-book (P/B) ratio is 21.21. Its current price-to-cashflow (P/CF) ratio is 539.90, and its debt to equity ratio is 0.15. The stock offers a positive return on equity (ROE) of 4.37 per cent, and its return on assets (ROA) is 3.69 per cent, as per data on the TMX portal.
The company registered revenue from subscription solutions of US$ 245.3 million in Q3 2020, a 48 per cent increase year-over-year (YoY). The tech company recorded total revenue of US$ 767.4 million in the third quarter of 2020, a 96 per cent surge YoY.
Nuvei Corp (TSX:NVEI)
Current Stock Price: C$ 60.61
Nuvei Corp is a software company that offers online payment solutions to vendors. Its technology solutions provide the following payment modes: mobile payments, online payments, and in-store payments. The company generates its revenue from sales, fees, and subscriptions.
Nuvei Stock Performance
The fintech stock has soared nearly 35 per cent since its listing on the Toronto Stock Exchange on September 18, 2020. The online payment stock has increased by almost 23 per cent in the last one month of trading.
The company has been ranked among TMX’s Top price performers that have outperformed the TSX and TSXV in the last 30 days. The company also made it to TMX’s Top Tech stocks that have surpassed their peers with the highest gains in the last 30 days, as per the TMX portal.
Its current market cap is C$ 2.78 billion, and its price-to-book (P/B) ratio is 5.591. Its debt to equity (D/E) ratio is 0.09, and the current price-to-cashflow (P/CF) ratio is 136.9, according to TMX data.
In the third quarter of 2020, Nuvei posted a revenue of US$ 93.6 million, a growth of 32 per cent year over. Its adjusted EBITDA was US$ 41.0 million in Q3 2020, a surge of 59 per cent against US$ 25.8 million in Q3 2019.
