Shutterfly Inc. Stock Upgraded (SFLY)

NEW YORK ( TheStreet) -- Shutterfly (Nasdaq: SFLY) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • SFLY's very impressive revenue growth greatly exceeded the industry average of 25.0%. Since the same quarter one year prior, revenues leaped by 58.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SFLY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SFLY has a quick ratio of 2.39, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Internet & Catalog Retail industry average, but is less than that of the S&P 500. The net income increased by 8.9% when compared to the same quarter one year prior, going from $32.51 million to $35.41 million.
  • Net operating cash flow has increased to $122.84 million or 30.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.38%.
  • The gross profit margin for SHUTTERFLY INC is rather high; currently it is at 62.60%. Regardless of SFLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SFLY's net profit margin of 13.40% significantly outperformed against the industry.
.

Shutterfly, Inc. provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their digital photos through the medium of photography in the United States. The company has a P/E ratio of 82.2, above the average internet industry P/E ratio of 48.4 and above the S&P 500 P/E ratio of 17.7. Shutterfly has a market cap of $821.9 million and is part of the technology sector and internet industry. Shares are up 44.4% year to date as of the close of trading on Monday.

You can view the full Shutterfly Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

null

More from Markets

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Video: As Trade Worries Subside, Expect a 'Relief Rally' in Stocks

Video: As Trade Worries Subside, Expect a 'Relief Rally' in Stocks

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower