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Investors should take note of NASDAQ:ETSY, a growth stock that remains attractively priced.

By Mill Chart

Last update: Dec 4, 2023

Our stock screener has singled out ETSY INC (NASDAQ:ETSY) as an attractive growth opportunity. NASDAQ:ETSY is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for NASDAQ:ETSY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ETSY was assigned a score of 7 for growth:

  • The Earnings Per Share has grown by an impressive 144.44% over the past year.
  • ETSY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
  • Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 42.21% on average per year.
  • ETSY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.53% yearly.
  • The Revenue is expected to grow by 10.70% on average over the next years. This is quite good.

A Closer Look at Valuation for NASDAQ:ETSY

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ETSY scores a 5 out of 10:

  • Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than 67.65% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 73.53% of the companies listed in the same industry.
  • ETSY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ETSY has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ETSY's earnings are expected to grow with 37.33% in the coming years.

Health Assessment of NASDAQ:ETSY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:ETSY has earned a 7 out of 10:

  • An Altman-Z score of 3.15 indicates that ETSY is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.15, ETSY is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
  • ETSY has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as ETSY would need 3.57 years to pay back of all of its debts.
  • ETSY has a better Debt to FCF ratio (3.57) than 67.65% of its industry peers.
  • ETSY has a Current Ratio of 2.45. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.45, ETSY belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
  • ETSY has a Quick Ratio of 2.45. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
  • ETSY has a Quick ratio of 2.45. This is amongst the best in the industry. ETSY outperforms 91.18% of its industry peers.

Profitability Examination for NASDAQ:ETSY

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ETSY, the assigned 8 is a significant indicator of profitability:

  • ETSY has a better Return On Assets (13.63%) than 94.12% of its industry peers.
  • ETSY has a better Return On Invested Capital (15.46%) than 85.29% of its industry peers.
  • ETSY had an Average Return On Invested Capital over the past 3 years of 14.62%. This is above the industry average of 9.92%.
  • The last Return On Invested Capital (15.46%) for ETSY is above the 3 year average (14.62%), which is a sign of increasing profitability.
  • ETSY has a Profit Margin of 12.30%. This is amongst the best in the industry. ETSY outperforms 88.24% of its industry peers.
  • ETSY has a better Operating Margin (13.70%) than 82.35% of its industry peers.
  • In the last couple of years the Operating Margin of ETSY has grown nicely.
  • Looking at the Gross Margin, with a value of 70.56%, ETSY belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of ETSY for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ETSY INC

NASDAQ:ETSY (2/23/2024, 10:35:00 AM)

71.26

+0.64 (+0.91%)

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