SFLY - Shutterfly's Growth Is Expected To Slow; Vote In Favor Of The Deal
Shutterfly, Inc. (SFLY) is involved in the photographic industry. Apollo Funds has made a takeover offer for Shutterfly, and due to the expected slowing in Shutterfly's revenue growth, along with a volatile earnings history, I would vote in favor of the deal.
Financials
Shutterfly has produced solid growth over the last decade but operates with fairly low margins. For the 2018 fiscal year, Shutterfly's profit margin was only 2.5% with a return on equity of 2.2%. Shutterfly's 2020 PE multiple is 29x, and its trailing full-year PE multiple is 34x.
The chart below visually shows