Attractive stocks have exceptional fundamentals. In the case of Shutterstock Inc (NYSE:SSTK), there’s is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Shutterstock here.
Flawless balance sheet with proven track record
SSTK delivered a bottom-line expansion of 71% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, SSTK also outperformed its industry, which delivered a growth of 19%. This paints a buoyant picture for the company. SSTK’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that SSTK has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at SSTK’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, 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 pertinent factors 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.