Getty Images

Getty Images (GYI-NYSE) is a leading provider of digital images to advertising, media and corporate customers. It has exhibited very strong growth and an attractive, cash-rich business model. Future growth will come from acquisitions, entry into new geographical markets and organic growth.
Getty has an online library of stock imagery, editorial and archival photography, and illustrations. The company also provides custom photography projects for corporate clients, such as photographing executives or products or covering a news event.
Getty has grown into one of the world’s leading image providers through a series of acquisitions and organic growth. The company has been an industry innovator, as the growth of the Internet has completely changed the business. The company has long-term goals of 15% revenue growth and 25% earnings growth. The company has also exceeded consensus earnings estimates in 10 consecutive quarters, often by double-digit margins.
Getty generates over 50% of its revenues outside of the U.S. (53% in 2003). The biggest foreign countries by sales are the U.K., Germany and France. This will continue to be a significant portion of the company’s growth, as it is aggressively entering the Japanese market with expanded offerings of country-specific images. This international exposure is an attractive feature of the stock.
The company is economically sensitive due to the nature of its end customers’ businesses. A significant piece of its business is with advertising agencies and magazine and newspaper publishers.
According to KLD, the company provides domestic partnership benefits and includes sexual orientation in its nondiscrimination policy. The company is a member of the Global Business Coalition on HIV/AIDS.