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NYSE:SSTK appears to be flying under the radar despite its strong fundamentals.

By Mill Chart

Last update: Nov 9, 2023

SHUTTERSTOCK INC (NYSE:SSTK) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:SSTK showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Analysis for NYSE:SSTK

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:SSTK, the assigned 8 reflects its valuation:

  • With a Price/Earnings ratio of 8.82, the valuation of SSTK can be described as very reasonable.
  • SSTK's Price/Earnings ratio is rather cheap when compared to the industry. SSTK is cheaper than 93.75% of the companies in the same industry.
  • SSTK is valuated cheaply when we compare the Price/Earnings ratio to 23.46, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 8.74, which indicates a very decent valuation of SSTK.
  • 90.63% of the companies in the same industry are more expensive than SSTK, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SSTK to the average of the S&P500 Index (18.80), we can say SSTK is valued rather cheaply.
  • 84.38% of the companies in the same industry are more expensive than SSTK, based on the Enterprise Value to EBITDA ratio.
  • SSTK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSTK is cheaper than 89.06% of the companies in the same industry.
  • SSTK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SSTK has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NYSE:SSTK

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:SSTK scores a 8 out of 10:

  • The Return On Assets of SSTK (11.65%) is better than 85.94% of its industry peers.
  • SSTK has a Return On Equity of 22.24%. This is amongst the best in the industry. SSTK outperforms 92.19% of its industry peers.
  • SSTK's Return On Invested Capital of 12.76% is amongst the best of the industry. SSTK outperforms 90.63% of its industry peers.
  • SSTK had an Average Return On Invested Capital over the past 3 years of 16.97%. This is significantly above the industry average of 11.26%.
  • The last Return On Invested Capital (12.76%) for SSTK is well below the 3 year average (16.97%), which needs to be investigated, but indicates that SSTK had better years and this may not be a problem.
  • SSTK has a Profit Margin of 13.52%. This is in the better half of the industry: SSTK outperforms 78.13% of its industry peers.
  • SSTK's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 10.58%, SSTK is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SSTK has grown nicely.

Looking at the Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:SSTK has earned a 6 out of 10:

  • SSTK has an Altman-Z score of 3.31. This indicates that SSTK is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.31, SSTK is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
  • The Debt to FCF ratio of SSTK is 0.25, which is an excellent value as it means it would take SSTK, only 0.25 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.25, SSTK belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that SSTK is not too dependend on debt financing.
  • SSTK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Growth Assessment of NYSE:SSTK

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:SSTK, the assigned 6 reflects its growth potential:

  • SSTK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.72%, which is quite impressive.
  • Measured over the past years, SSTK shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.31% on average per year.
  • Measured over the past years, SSTK shows a quite strong growth in Revenue. The Revenue has been growing by 8.24% on average per year.
  • SSTK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.52% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of SSTK for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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SHUTTERSTOCK INC

NYSE:SSTK (2/16/2024, 2:47:58 PM)

45.48

-2.32 (-4.85%)

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