DB:P1Q

Stock Analysis Report

Executive Summary

Shutterfly, Inc. manufactures and retails personalized products primarily in the United States, Canada, and the European Community.

Rewards

Trading at 36.5% below its fair value

Earnings are forecast to grow 37.7% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.4%) are lower than last year (2.3%)

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Shutterfly's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: P1Q has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

P1Q

2.7%

DE Online Retail

0.1%

DE Market


1 Year Return

-21.4%

P1Q

79.1%

DE Online Retail

14.1%

DE Market

Return vs Industry: P1Q underperformed the German Online Retail industry which returned 68.2% over the past year.

Return vs Market: P1Q underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

P1QIndustryMarket
7 Day0.7%2.7%0.1%
30 Day1.7%7.5%0.2%
90 Day4.2%44.0%3.3%
1 Year-21.4%-21.4%79.8%79.1%17.6%14.1%
3 Year15.8%15.8%14.2%14.7%14.8%4.8%
5 Year20.6%20.6%72.7%68.6%22.2%5.4%

Price Volatility Vs. Market

How volatile is Shutterfly's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shutterfly undervalued compared to its fair value and its price relative to the market?

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: P1Q (€45.78) is trading below our estimate of fair value (€72.13)

Significantly Below Fair Value: P1Q is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: P1Q is poor value based on its PE Ratio (223.2x) compared to the Online Retail industry average (18.9x).

PE vs Market: P1Q is poor value based on its PE Ratio (223.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: P1Q is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: P1Q is overvalued based on its PB Ratio (2.9x) compared to the DE Online Retail industry average (1.5x).


Next Steps

Future Growth

How is Shutterfly forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: P1Q's forecast earnings growth (37.7% per year) is above the savings rate (0.2%).

Earnings vs Market: P1Q's earnings (37.7% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: P1Q's revenue (3.7% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: P1Q's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if P1Q's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shutterfly performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: P1Q has a large one-off loss of $26.7M impacting its June 30 2019 financial results.

Growing Profit Margin: P1Q's current net profit margins (0.4%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: P1Q has become profitable over the past 5 years, growing earnings by 45.9% per year.

Accelerating Growth: P1Q's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: P1Q had negative earnings growth (-76.2%) over the past year, making it difficult to compare to the Online Retail industry average (-6.1%).


Return on Equity

High ROE: P1Q's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shutterfly's financial position?


Financial Position Analysis

Short Term Liabilities: P1Q's short term assets ($329.6M) exceed its short term liabilities ($252.6M).

Long Term Liabilities: P1Q's short term assets ($329.6M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: P1Q's debt to equity ratio (151.4%) is considered high.

Reducing Debt: P1Q's debt to equity ratio has increased from 34.2% to 151.4% over the past 5 years.

Debt Coverage: P1Q's debt is well covered by operating cash flow (26.1%).

Interest Coverage: P1Q's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: P1Q has a high level of physical assets or inventory.

Debt Coverage by Assets: P1Q's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Shutterfly's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate P1Q's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate P1Q's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if P1Q's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if P1Q's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of P1Q's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Ryan O’Hara 0

0.3yrs

Tenure

0

Mr. Ryan O’Hara has been President, Chief Executive Officer and Director at Shutterfly, Inc. since June 24, 2019. Mr. O’Hara is a seasoned executive with experience across a range of industries. He joins S ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Pope
Senior VP3.9yrsUS$4.44m0.072% $1.2m
Maureen Mericle
Senior VP & Chief Marketing Officer0.9yrsUS$5.11mno data
Satish Menon
Consultant0yrsUS$2.57mno data
Ryan O’Hara
CEO, President & Director0.3yrsno datano data
Dwayne Black
Senior VP & COO12.6yrsUS$2.33m0.098% $1.6m
Shawn Tabak
Vice President of Investor Relations & Treasury0yrsno datano data
Jason Sebring
VP & General Counsel0yrsno datano data
Tracy Layney
Senior VP & Chief Human Resources Officer4.3yrsUS$4.72mno data
James Hilt
President of Consumer Division0.5yrsno datano data
Dennis Hintz
President of Lifetouch0.2yrsno data0.0099% $158.5k

0.9yrs

Average Tenure

51yo

Average Age

Experienced Management: P1Q's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ryan O’Hara
CEO, President & Director0.3yrsno datano data
Thomas Hughes
Director4.3yrsUS$224.95k0.030% $484.0k
Brian Swette
Director10yrsUS$234.95k0.092% $1.5m
H. Stansbury
Director2.8yrsUS$224.95k0.024% $392.0k
Ann Mather
Director6.3yrsUS$224.95k0.018% $294.5k
William Lansing
Chairman of the Board2.6yrsUS$352.37k0.088% $1.4m
Elizabeth Rafael
Director3.3yrsUS$274.91k0.023% $368.3k
Elizabeth Sartain
Director2.8yrsUS$254.92k0.027% $429.9k
Eva Manolis
Director2.9yrsUS$224.95k0.027% $436.8k
Michael Zeisser
Director6.5yrsUS$224.95k0.070% $1.1m

3.1yrs

Average Tenure

59yo

Average Age

Experienced Board: P1Q's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Shutterfly, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shutterfly, Inc.
  • Ticker: P1Q
  • Exchange: DB
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$1.753b
  • Listing Market Cap: US$1.601b
  • Shares outstanding: 34.40m
  • Website: https://www.shutterflyinc.com

Number of Employees


Location

  • Shutterfly, Inc.
  • 2800 Bridge Parkway
  • Redwood City
  • California
  • 94065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFLYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2006
P1QDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2006

Biography

Shutterfly, Inc. manufactures and retails personalized products primarily in the United States, Canada, and the European Community. The company operates through three reportable segments: Shutterfly Consumer, Lifetouch, and Shutterfly Business Solutions. The Shutterfly Consumer segment provides products, such as portraits, cards and stationery items, professionally-bound photo books and year books, personalized gifts and home décor products, and calendars and prints; and mugs, ornaments, candles, pillows, and blankets through the Shutterfly, Tiny Prints, and Groovebook domains, as well as rents photographic and video equipment under BorrowLenses brand. The Lifetouch segment offers photography services for schools, preschools, and retail stores under the under the JCPenney portrait brand at approximately 400 retail studios, as well as churches and other groups. The Shutterfly Business Solutions provides direct marketing and other end-consumer communications, as well as just-in-time and inventory free printing services. Shutterfly, Inc. was founded in 1999 and is headquartered in Redwood City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/25 21:54
End of Day Share Price2019/09/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.