NYSE:SSTK is an undervalued gem with solid fundamentals.

Take a closer look at SHUTTERSTOCK INC (NYSE:SSTK), a remarkable value stock uncovered by our stock screener. NYSE:SSTK excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Examination for NYSE:SSTK

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:SSTK boasts a 8 out of 10:

• A Price/Earnings ratio of 7.91 indicates a rather cheap 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 88.41% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 30.24. SSTK is valued rather cheaply when compared to this.
• SSTK is valuated cheaply with a Price/Forward Earnings ratio of 6.40.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of SSTK indicates a rather cheap valuation: SSTK is cheaper than 89.86% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.81, SSTK is valued rather cheaply.
• SSTK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SSTK is cheaper than 85.51% of the companies in the same industry.
• 62.32% of the companies in the same industry are more expensive than SSTK, based on the Price/Free Cash Flow ratio.
• SSTK has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination 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:

• The Return On Assets of SSTK (4.70%) is better than 79.71% of its industry peers.
• SSTK has a Return On Equity of 9.06%. This is amongst the best in the industry. SSTK outperforms 85.51% of its industry peers.
• SSTK has a better Return On Invested Capital (8.19%) than 85.51% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for SSTK is above the industry average of 10.42%.
• The 3 year average ROIC (15.20%) for SSTK is well above the current ROIC(8.19%). The reason for the recent decline needs to be investigated.
• SSTK has a Profit Margin of 5.33%. This is in the better half of the industry: SSTK outperforms 72.46% of its industry peers.
• In the last couple of years the Profit Margin of SSTK has grown nicely.
• Looking at the Operating Margin, with a value of 6.41%, SSTK is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
• SSTK's Operating Margin has improved in the last couple of years.

Health Insights: 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 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.74, SSTK is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
• The Debt to FCF ratio of SSTK is 0.86, which is an excellent value as it means it would take SSTK, only 0.86 years of fcf income to pay off all of its debts.
• SSTK's Debt to FCF ratio of 0.86 is fine compared to the rest of the industry. SSTK outperforms 78.26% of its industry peers.
• A Debt/Equity ratio of 0.06 indicates that SSTK is not too dependend on debt financing.

How do we evaluate the Growth for NYSE:SSTK?

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:

• 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.
• The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
• Based on estimates for the next years, SSTK will show a quite strong growth in Revenue. The Revenue will grow by 8.69% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.