NYSE:SSTK is probably undervalued for the fundamentals it is displaying.

Our stock screening tool has pinpointed SHUTTERSTOCK INC (NYSE:SSTK) as an undervalued stock. NYSE:SSTK maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

A Closer Look at Valuation for NYSE:SSTK

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:SSTK was assigned a score of 9 for valuation:

• Based on the Price/Earnings ratio of 9.40, the valuation of SSTK can be described as reasonable.
• Based on the Price/Earnings ratio, SSTK is valued cheaper than 92.31% of the companies in the same industry.
• SSTK is valuated cheaply when we compare the Price/Earnings ratio to 26.00, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 10.29, the valuation of SSTK can be described as reasonable.
• 84.62% of the companies in the same industry are more expensive than SSTK, based on the Price/Forward Earnings ratio.
• SSTK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
• SSTK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SSTK is cheaper than 81.54% of the companies in the same industry.
• SSTK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSTK is cheaper than 87.69% of the companies in the same industry.
• The 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 Insights: NYSE:SSTK

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SSTK, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of SSTK (11.64%) is better than 87.69% of its industry peers.
• SSTK has a Return On Equity of 22.22%. This is amongst the best in the industry. SSTK outperforms 90.77% of its industry peers.
• With an excellent Return On Invested Capital value of 12.76%, SSTK belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
• SSTK had an Average Return On Invested Capital over the past 3 years of 16.97%. This is significantly above the industry average of 9.98%.
• 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 13.51%. This is in the better half of the industry: SSTK outperforms 80.00% of its industry peers.
• SSTK's Profit Margin has improved in the last couple of years.
• SSTK's Operating Margin of 10.58% is fine compared to the rest of the industry. SSTK outperforms 76.92% of its industry peers.
• In the last couple of years the Operating Margin of SSTK has grown nicely.

Health Assessment of NYSE:SSTK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SSTK scores a 6 out of 10:

• An Altman-Z score of 3.41 indicates that SSTK is not in any danger for bankruptcy at the moment.
• SSTK has a Altman-Z score of 3.41. This is in the better half of the industry: SSTK outperforms 72.31% of its industry peers.
• 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.
• SSTK has a better Debt to FCF ratio (0.25) than 84.62% 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.
• 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 Insights: NYSE:SSTK

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:SSTK scores a 6 out of 10:

• The Earnings Per Share has grown by an impressive 29.72% over the past year.
• SSTK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.31% yearly.
• 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.
• The Earnings Per Share is expected to grow by 13.71% on average over the next years. This is quite good.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.