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.
