Despite its impressive fundamentals, NYSE:SSTK remains undervalued.

Our stock screening tool has identified SHUTTERSTOCK INC (NYSE:SSTK) as an undervalued gem with strong fundamentals. NYSE:SSTK boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Analysis for NYSE:SSTK

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:SSTK has received a 8 out of 10:

• A Price/Earnings ratio of 9.36 indicates a reasonable valuation of SSTK.
• Compared to the rest of the industry, the Price/Earnings ratio of SSTK indicates a rather cheap valuation: SSTK is cheaper than 88.06% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 24.93. SSTK is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 9.43, which indicates a very decent valuation of SSTK.
• SSTK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SSTK is cheaper than 88.06% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.41. SSTK is valued rather cheaply when compared to this.
• SSTK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SSTK is cheaper than 85.07% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, SSTK is valued cheaper than 80.60% of the companies in the same industry.
• The excellent profitability rating of SSTK may justify a higher PE ratio.

A Closer Look at Profitability for NYSE:SSTK

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:SSTK has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 10.64%, SSTK belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
• SSTK has a better Return On Equity (20.91%) than 89.55% of its industry peers.
• SSTK has a better Return On Invested Capital (9.68%) than 83.58% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for SSTK is significantly above the industry average of 9.61%.
• 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.
• The Profit Margin of SSTK (12.60%) is better than 77.61% 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 7.82%, SSTK is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
• In the last couple of years the Operating Margin of SSTK has grown nicely.

Health Assessment of 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:

• SSTK has an Altman-Z score of 3.04. This indicates that SSTK is financially healthy and has little risk of bankruptcy at the moment.
• SSTK's Altman-Z score of 3.04 is fine compared to the rest of the industry. SSTK outperforms 67.16% 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.
• Looking at the Debt to FCF ratio, with a value of 0.31, SSTK belongs to the top of the industry, outperforming 82.09% 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.

Unpacking NYSE:SSTK's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:SSTK has received a 5 out of 10:

• The Earnings Per Share has grown by an nice 11.86% over the past year.
• Measured over the past years, SSTK shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.55% on average per year.
• Based on estimates for the next years, SSTK will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.17% on average per year.

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.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.