For those who appreciate value investing, NYSE:SSTK is a compelling option with its solid fundamentals.

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.

A Closer Look at Valuation for NYSE:SSTK

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:SSTK has earned a 8 for valuation:

• SSTK is valuated reasonably with a Price/Earnings ratio of 10.89.
• SSTK's Price/Earnings ratio is rather cheap when compared to the industry. SSTK is cheaper than 84.85% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 26.09, SSTK is valued rather cheaply.
• A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of SSTK.
• 84.85% 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 (22.45), we can say SSTK is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SSTK indicates a rather cheap valuation: SSTK is cheaper than 80.30% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, SSTK is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
• The excellent profitability rating of SSTK may justify a higher PE ratio.

Profitability Analysis for NYSE:SSTK

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SSTK was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 10.64%, SSTK belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
• SSTK's Return On Equity of 20.91% is amongst the best of the industry. SSTK outperforms 89.39% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 9.68%, SSTK belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for SSTK is significantly above the industry average of 9.52%.
• The last Return On Invested Capital (9.68%) for SSTK is well below the 3 year average (15.20%), 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 12.60%. This is in the better half of the industry: SSTK outperforms 77.27% of its industry peers.
• SSTK's Profit Margin has improved in the last couple of years.
• The Operating Margin of SSTK (7.82%) is better than 69.70% of its industry peers.
• In the last couple of years the Operating Margin of SSTK has grown nicely.

Evaluating Health: NYSE:SSTK

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SSTK has received a 6 out of 10:

• An Altman-Z score of 3.32 indicates that SSTK is not in any danger for bankruptcy at the moment.
• SSTK has a Altman-Z score of 3.32. This is in the better half of the industry: SSTK outperforms 74.24% of its industry peers.
• SSTK has a debt to FCF ratio of 0.31. This is a very positive value and a sign of high solvency as it would only need 0.31 years to pay back of all of its debts.
• SSTK has a Debt to FCF ratio of 0.31. This is amongst the best in the industry. SSTK outperforms 83.33% of its industry peers.
• SSTK has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
• The current and quick ratio evaluation for SSTK is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Unpacking NYSE:SSTK's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:SSTK has achieved a 5 out of 10:

• The Earnings Per Share has grown by an nice 11.86% over the past year.
• The Earnings Per Share has been growing by 22.55% on average over the past years. This is a very strong growth
• SSTK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.17% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SSTK

Disclaimer

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.