Don't Miss These Facts About Shutterstock

Now trading at a price of $75.82, Shutterstock has moved 4.9% so far today. In contrast, the S&P 500 index moved 0.6%. Read below for a basic value analysis of Shutterstock.

Shutterstock shares moved -25.0% over the last 52 weeks, with a high of $98.74 and a low of $44.61. During this time, the stock lagged the S&P 500 index by -13.3%. As of January 2022, the company's 50-day average price is $55.11. Shutterstock, Inc., a technology company, provides quality content, and creative workflow solutions in North America, Europe, and internationally. The mid-cap Communication Services company has 1,148 full time employees and is based in New York, NY. Shutterstock has returned a 1.3% dividend yield over the last 12 months.

Exceptional EPS Growth with Low Leverage Levels:

2019-12-31 2020-12-31 2021-12-31
Revenue (k) $650,523 $666,686 $773,415
Revenue Growth n/a 2.48% 16.01%
Gross Margins 57.2% 61.1% 64.1%
Gross Margins Growth n/a 6.82% 4.91%
Operating Margins 3.1% 12.8% 14.0%
Operating Margins Growth n/a 312.9% 9.37%
Earnings Per Share $0.57 $1.97 $2.46
EPS Growth n/a 245.61% 24.87%
Free Cash Flow (k) $73,221 $136,472 $179,373
FCF Growth n/a 86.38% 31.44%
Capital Expenditures (k) -$29,425 -$28,600 -$36,999
Net Debt / EBITDA -3.68 -3.13 -1.73

Shutterstock Is Reasonably Valued:

Compared to the Communication Services sector's average of 18.65, Shutterstock has a trailing twelve month P/E ratio of 30.0 and, according to its EPS guidance of 3.5, an expected P/E ratio of 21.7. Shutterstock's PEG ratio is 0.29 based on its 104.33% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Shutterstock's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.3, which suggests that the company's shares are actually overvalued.

Shutterstock's P/B ratio is 6.3 compared to its sector average of 2.62. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 256.7% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.67 * 12.024) = $21.26

Shutterstock's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

Shutterstock Is the Subject of Mixed Market Indicators:

4 analysts are following Shutterstock and have set target prices ranging from $47 to $70 per share. On average, they have given the company a rating of buy. At the current price of $75.82, SSTK is trading 22.79% away from its average analyst target price of $61.75 per share, implying an analyst belief that shares are overpriced for the stock.

The company has an above average percentage of its shares sold short since 8.1% of the company's shares are tied to short positions. Institutions own 72.2% of Shutterstock's shares, while the insider ownership rate stands at 33.73%. The biggest shareholder is Blackrock Inc. with a 11% stake in the company worth approximately $292,272,151.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.