Yahoo Finance Why Fundamental Investors Might Love Shutterstock Inc (NYSE:SSTK)
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Shutterstock Inc (NYSE:SSTK), it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Shutterstock here.
Flawless balance sheet with proven track record
In the previous year, SSTK has ramped up its bottom line by 71%, with its latest earnings level surpassing its average level over the last five years. Not only did SSTK outperformed its past performance, its growth also exceeded the Online Retail industry expansion, which generated a 19% earnings growth. This is an notable feat for the company. SSTK is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Investors should not worry about SSTK’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. SSTK has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Next Steps:
For Shutterstock, I’ve put together three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SSTK’s future growth? Take a look at our free research report of analyst consensus for SSTK’s outlook.
Valuation: What is SSTK worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SSTK is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSTK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
