Shutterstock, Inc. (SSTK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Shutterstock's price-to-book of 0.57 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $2.66 is below our fair value estimate of $14.95.

Margin of safety over 20%

The price is 82.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -15.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -794% over the last twelve months, against a 5-year average of -8.7% a year.

Growing slower than the industry

Revenue grew -20.1% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 54.6% over the last twelve months, against 58.6% a year earlier.

Return on equity under 15%

Return on equity was -109% over the last twelve months and averaged 15.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -60.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Shutterstock's return on equity of -109% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings shrank over 5 years

Net income shrank 8.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -51.2% over the last twelve months, against a 5-year average of 8.4%.

Net margin below the industry

Shutterstock's net margin of -51.2% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 141% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.9% of total debt.

Interest not well covered

Operating income covers interest expense -25.4 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.47 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -1.01; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Shutterstock paid dividends worth 39.5% of the share price over the last twelve months.

Yield above Treasuries

The 39.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Shutterstock yields 39.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 123% of free cash flow.